State pension age to increase in 2026 - what you need to know
The Pensions Act of 2014 accelerated the increase of the State Pension age from 66 to 67 by eight years. The UK Government also modified the phasing of the State Pension age increase, meaning that instead of reaching State Pension age on a specific date, individuals born between March 6, 1961, and April 5, 1977 will be eligible to claim the State Pension once they turn 67.
It's crucial to keep up-to-date with these upcoming changes, especially if you have a retirement plan in place. All those affected by changes to their State Pension age will receive an advance notification letter from the Department for Work and Pensions (DWP).
As per the Pensions Act 2007, the State Pension age for both men and women will see another rise from 67 to 68 between 2044 and 2046.
The Pensions Act 2014 mandates a regular review of the State Pension age at least every five years. These reviews will follow the principle that individuals should spend a certain proportion of their adult life receiving a State Pension, reports Wales Online.
The UK's state pension age is due for a review before the end of this decade. Originally, the Conservative government had planned this review for two years post the general election, which would have been in 2026.
The review will consider factors such as life expectancy when deciding on the State Pension age. Following the review, the UK Government may decide to adjust the State Pension age.
However, any proposed changes must be approved by parliament before they can be implemented into law. This is the earliest age at which you can start receiving your State Pension, which may not be the same as the age at which you can access a workplace or personal pension.
In terms of increasing State Pension payments, HM Revenue and Customs (HMRC) recently revealed that over 10,000 payments totalling £12.5 million have been made through the new digital service to boost State Pensions since it was launched last year. However, those looking to maximise their retirement income through the contributory benefit only have a few weeks left to fill any gaps in their National Insurance (NI) records dating back to 2006.
The duration for making voluntary National Insurance contributions has been significantly increased beyond the usual six-year limit. The past administration extended the period to allow backdated payments from April 6, 2006, to April 5, 2018, and now, under the new State Pension rules, up to April 5, 2025.
This gives individuals additional time to assess their situation and contribute further if needed. Those eligible for these top-ups include men born from April 6, 1951, and women from April 6, 1953, which can potentially raise their eventual New State Pension sum.
For some people, obtaining National Insurance credits may be a better route than making contributions, so it's important to explore all the options.
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