People planning for retirement are being urged to check their state pension age as the UK begins raising the qualifying age from 66 to 67.
The change starts this month and will be phased in over several years. Under the current timetable, the state pension age will reach 67 by April 2028.
The shift comes alongside an increase in weekly state pension payments.
State pension payments rise
From April:
- The full new state pension rises from £230.25 a week to £241.30.
- The full basic state pension increases from £176.45 a week to £184.90.
Retirement plans could be affected
The state pension provides a key source of retirement income for many people.
Anyone expecting to start receiving the pension at 66 could face difficulties if they are unaware that their state pension age has moved to 67.
Checking an individual’s state pension age through the gov.uk website could help avoid unexpected gaps in retirement income.
Further increases are planned
Under the current schedule, the state pension age is due to begin rising toward 68 from 2044.
An ongoing review could alter that timetable. Any changes could bring the increase forward or set out plans for additional rises.
Challenges for older workers
Longer life expectancy and declining healthy life expectancy present challenges for people approaching retirement.
Some people may struggle to remain in work into their late 60s, creating a gap between leaving employment and becoming eligible for the state pension.
The issue highlights the importance of pension saving during working life and increasing contributions where possible.
Auto-enrolment expected to boost savings
Automatic enrolment is expected to help future retirees build larger pension pots because contributions are made throughout their careers.
The article also argues that measures to help older people stay in employment could play an important role.
Possible measures include:
- Retraining workers for new roles.
- Offering greater flexibility at work.
According to the article, such steps could help people remain employed for longer and continue contributing to their pensions.
TL;DR:
The UK has begun raising the state pension age from 66 to 67, with the increase set to be completed by April 2028. Weekly state pension payments have also increased, while further rises in the qualifying age remain under review.
AI summary:
- The state pension age is starting to rise from 66 to 67.
- The change will be fully implemented by April 2028.
- Weekly state pension payments increased in April.
- The state pension age is currently scheduled to rise toward 68 from 2044.
- An ongoing review could change the timetable.
