The Department for Work and Pensions (DWP) has confirmed that the state pension age will rise to 67 by 2028, impacting millions of working households across the UK. This increase, mandated under the Pensions Act 2014, has been accelerated by eight years, moving up the timeline from previous projections. Currently, the state pension age is 66, with a further planned increase to 68 anticipated between 2044 and 2046, although this schedule remains subject to review.
It’s important to understand that reaching the state pension age does not require individuals to stop working. Instead, it marks the earliest age at which they can claim their state pension benefits. There is no compulsory retirement age; workers may continue their careers beyond this point if they choose.
Alice Haine, Personal Finance Analyst at Bestinvest by Evelyn Partners, emphasized the significance of National Insurance (NI) contributions, explaining that individuals need at least 10 qualifying years to receive any state pension and 35 years to qualify for the full new state pension. These years do not need to be consecutive.
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For those with gaps in their NI record, purchasing missing years can be an option. However, Haine cautions that this can be costly and advises careful consideration based on how many years a person plans to work and their eligibility for NI credits. These credits can cover periods of illness, unemployment, or caregiving responsibilities.
A simple online survey helps individuals assess their eligibility to pay to fill these gaps and presents tailored options depending on their retirement plans. Haine warns that overpaying for extra years offers no financial return, so calculating the right amount is essential.
Martin Lewis, founder of Money Saving Expert and known BBC and ITV presenter, reiterated that the state pension age depends on the individual’s birth date. He confirmed that the increase from 66 to 67 will occur gradually between April 2026 and April 2028 for both men and women, with a further rise to 68 planned for 2044 to 2046.