The state pension age will be increasing to 67 over the next two years
The state pension age changes starting in April will affect almost everyone who has not turned 66 yet. But, people born on specific dates may have completely different state pension ages compared to those born just a few days later as ministers continue to debate the impact and savings of the change.
The state pension age is the earliest age at which you can begin receiving your state pension, although you can defer it to start payments at a later date. It is under review with the Government considering factors such as life expectancy increasing, labour market conditions, costs and sustainability.
While future increases are subject to change, a confirmed rise from 66 to 67 will be starting in April with a phased rollout over the next two years. Because of this, people born between April 6, 1960 and March 5, 1961 will each have differing state pension ages depending on their exact date of birth.
Everyone born after March 5, 1961 will have a state pension age of 67. Some may have an even higher state pension age as the Government has penciled in plans to increase it to 68 in the 2040s.
State pension age according to your birthday:
- 6 April 1960 – 5 May 1960: 66 years and 1 month
- 6 May 1960 – 5 June 1960: 66 years and 2 months
- 6 June 1960 – 5 July 1960: 66 years and 3 months
- 6 July 1960 – 5 August 1960: 66 years and 4 months
- 6 August 1960 – 5 September 1960: 66 years and 5 months
- 6 September 1960 – 5 October 1960u0009: 66 years and 6 months
- 6 October 1960 – 5 November 1960: 66 years and 7 months
- 6 November 1960 – 5 December 1960: 66 years and 8 months
- 6 December 1960 – 5 January 1961: 66 years and 9 months
- 6 January 1961 – 5 February 1961: 66 years and 10 months
- 6 February 1961 – 5 March 1961: 66 years and 11 months
- 6 March 1961 – 5 April 1977: 67 years
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The rise from 66 to 67 is expected to save the Government £10billion and was initially planned by the previous Conservative Government. Addressing the Work and Pensions Committee on March 18th, Minister for Pensions Torsten Bell highlighted that the state pension age changes are meant to keep up with the rising life expectancy figures in the UK to ensure that each generation of people can spend “at least a third” of their life in retirement.
He pointed out: “At the point which the state pension age was first introduced, only about half of people were expected to even get to state pension age. It’s 93% now. We want to make sure we have a sustainable state pension in the longer term.”
However, he added that raising the state pension age “never feels like an easy decision”.
Everyone affected by any changes to their State Pension age should receive a letter from the DWP well in advance. Being aware of these changes in advance will allow people to shift their retirement plan accordingly.
You can also check what your state pension age could be online through the Gov.UK website. The site also provides a state pension forecast tool as not everyone will receive the same amount when they do reach state pension age.
People typically need a minimum of 10 qualifying years, where they paid National Insurance contributions or received National Insurance credits, in order to get any portion of the new state pension.
Once you reach 35 qualifying years, you will receive the full new state pension. In 2023, just over half of the 3.4 million people currently receiving the new state pension get the full amount according to analysis from Royal London.
The new state pension is currently worth £230.25 a week but the state pension will be increasing in April to £241.30 per week.
