Some individuals will experience a delay in claiming their state pension next year due to the gradual increase in the state pension age from 66 to 67. The adjustment will be phased in, causing certain individuals to wait beyond their 66th birthday before becoming eligible to receive their pension.
For instance, individuals born between April 6, 1960, and May 5, 1960, will reach 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 start receiving their state pension.
This transition will continue until April 2028 when the state pension age reaches 67. Sir Steve Webb, a former Pensions Minister and current partner at Lane Clark and Peacock (LCP), elaborated on this state pension increase. He explained the phased implementation from 66 to 67 between April 2026 and April 2028, resulting in individuals having a state pension age like 66 years and four months.
Individuals born after a certain date will have a state pension age of at least 67, with plans for a further increase to 68 between 2044 and 2046. While there have been discussions to expedite the rise to 68, a decision on this matter has been postponed. The state pension age denotes the earliest age at which one can commence receiving the state pension and is distinct from any workplace or private pension schemes.
Access to private pensions currently begins at 55 but is set to increase to 57 starting from April 2028. The new state pension, valued at £221.20 per week for eligible recipients, requires most individuals to have 35 qualifying years on their National Insurance record to receive the full amount. Additionally, the state pension undergoes annual increments in accordance with the triple lock promise.