The Department for Work and Pensions (DWP) has announced a rise in the State Pension age for individuals born between 1961 and 1977, which will take effect next year.
According to the Pensions Act 2014, the State Pension age is reviewed regularly, at least once every five years.
No Change to Current Timetable
The government has clarified that the timetable for equalising the State Pension age to 65, as well as the increases to 66 and 67, will not be altered.
However, there may be changes in the State Pension age increase from 67 to 68, following the results of a future review.
Gradual Increase in State Pension Age
Currently, the State Pension age is set at 66 for both men and women. Beginning in April next year, this will gradually rise, with the age reaching 67 in the near future.
The Pensions Act 2007 mandates that the State Pension age will increase from 67 to 68 between 2044 and 2046.
Regular Reviews and Future Changes
The Pensions Act 2014 ensures that the State Pension age undergoes a regular review at least every five years. This review will consider life expectancy along with other factors that are relevant for determining the appropriate pension age.
Following this review, the government may decide to bring forward adjustments to the State Pension age, although these changes will need to be approved by Parliament before becoming law.
Current Review of State Pension Age Timetable
As per the Labour Party, there are no immediate plans to revise the current timetable for equalising the State Pension age to 65, nor to adjust the rises to 66 or 67.
However, the review could lead to a change in the timetable for increasing the State Pension age from 67 to 68.
Checking Your State Pension Age
To find out your specific State Pension age, you can use the online tool available at GOV.UK. This allows individuals to check their pension age and understand the timelines relevant to them.
Supporting Lower-Income Families
Discussing the impact of State Pension age changes, Jonathan Cribb from the Institute for Fiscal Studies noted that many individuals face hardship due to these changes. He believes there is a compelling case for the government to offer more support to those affected.
By targeting additional help for people with lower incomes, the government could still save money on the State Pension by increasing the age but reduce the negative effects for the most vulnerable.
Options for Additional Support
According to Cribb, the government has two potential strategies to support affected individuals. The first option involves increasing support for those receiving Universal Credit, particularly those nearing their State Pension age.
A boost in benefits costing approximately £600 million per year could reduce poverty for around 30,000 households. Although this would represent a significant increase in spending, it amounts to just a tenth of the savings the taxpayer would gain from a one-year increase in the State Pension age.
| Support Option | Annual Cost | Effect on Poverty |
|---|---|---|
| Increase support for Universal Credit recipients | £600 million | Reduces poverty for 30,000 households |
The rise in State Pension age for those born between 1961 and 1977 is part of a long-term plan to ensure that the pension system remains sustainable.
While the timetable for State Pension age increases to 66 and 67 will remain unchanged, the government will continue to review the need for future adjustments.
With careful planning and additional support for vulnerable individuals, it is possible to strike a balance between saving taxpayer money and ensuring that those in need are not left behind.
FAQs
When will the State Pension age rise for people born between 1961 and 1977?
The State Pension age will rise gradually starting in April next year, reaching 67.
Will the State Pension age increase beyond 67?
Yes, the Pensions Act 2007 mandates that the State Pension age will increase from 67 to 68 between 2044 and 2046.
How often is the State Pension age reviewed?
The Pensions Act 2014 requires a review of the State Pension age at least every five years.
Can I check my State Pension age online?
Yes, you can check your State Pension age using the online tool available on GOV.UK.