A specialist in retirement benefits has clarified the reasons why certain individuals will experience a delay in commencing their entitlement to the state pension starting next year.
Presently, the age of eligibility for the state pension is 66 for both genders. However, beginning next year, it is set to incrementally increase to 67. Consequently, some individuals will have to wait for a few additional months post their 66th birthday before they become eligible to claim their state pension.
For instance, individuals born between April 6, 1960, and May 5, 1960, will attain the state pension age at 66 years and one month. Similarly, those born between September 6, 1960, and October 5, 1960, will have to wait until they are 66 years and six months old to initiate their state pension claims.
This phased transition will persist until April 2028 when the pension age will reach the benchmark of 67. The adjustment in the state pension age was elucidated by Sir Steve Webb, a former Pensions Minister and current partner at Lane Clark and Peacock (LCP), in a recent article for This is Money. In the article, a reader inquired about the reason for the delay in claiming her pension despite turning 66 in July.
Sir Steve responded by explaining that the shift from 66 to 67 will be implemented gradually between April 2026 and April 2028. This phased approach results in individuals, such as the reader, having a state pension age that is not a whole number of years but could be, for instance, 66 years and four months.
Individuals born after a specified date will have a state pension age of at least 67, with a future increase to 68 between 2044 and 2046 affecting those born on or after April 5, 1977. While there have been proposals to advance the rise to 68, a decision on this matter has been postponed.
The state pension age signifies the earliest age at which one can commence receiving the state pension, distinct from any workplace or private pension plans individuals may hold. The minimum age for accessing private pensions is presently 55 but is scheduled to increase to 57 from April 2028.
Currently, individuals who are retiring can claim the new state pension, valued at £221.20 per week for those meeting the eligibility criteria. Typically, individuals require 35 qualifying years in their National Insurance record to receive the full pension amount. Additionally, the state pension undergoes an annual increment in line with the triple lock guarantee.
