Major DWP State Pension change coming in next year

The Department for Work and Pensions (DWP) has confirmed the State Pension age will climb from 66 to 67 next year, with the hike expected to be fully implemented for all men and women across the UK by 2028. This planned alteration to the official retirement age has been in legislation since 2014, with another increase from 67 to 68 set to take place between 2044 and 2046.

The Pensions Act 2014 expedited the rise in the State Pension age from 66 to 67 by eight years. The UK Government also altered the method of phasing in the increase in State Pension age, meaning that instead of reaching State Pension age on a specific date, individuals born between 6 March 1961 and 5 April 1977 will be eligible to claim the State Pension once they turn 67.

It's crucial to be cognisant of these impending changes now, particularly if you've got a retirement plan in place. All those affected by changes to their State Pension age will receive a letter from the DWP well ahead of time.

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Under the Pensions Act 2007, the State Pension age for both men and women will rise from 67 to 68 between 2044 and 2046. The Pensions Act 2014 mandates a regular review of the State Pension age, at least once every five years.

The review will be centred around the concept that people should be able to spend a certain proportion of their adult life receiving a State Pension, reports the Daily Record. A review of the proposed increase to 68 is due before this decade ends, originally scheduled by the previous Conservative government to occur two years post-general election - which would have been 2026.

The State Pension age review will consider life expectancy and other relevant factors in setting the State Pension age. Following the review's report, the UK Government may decide to implement changes to the State Pension age. However, any proposals must pass through Parliament before becoming law.

What is my State Pension age?

Your State Pension age is the earliest age at which you can begin receiving your State Pension. It might differ from the age at which you can receive a workplace or personal pension.

People of all ages can use the online tool on GOV.UK to determine their State Pension age, an essential step in retirement planning.