DWP State Pension age changes for those with these birthdays

The State Pension age is set to increase from 66 to 67 next year, with the change expected to be fully implemented for all men and women across the UK by 2028. This planned adjustment to the official retirement age has been on the books since 2014, with a further increase from 67 to 68 slated to occur between 2044 and 2046.

The Pensions Act 2014 fast-tracked the rise in the State Pension age from 66 to 67 by eight years. The UK Government also tweaked the phasing of the State Pension age increase, meaning that instead of reaching State Pension age on a specific date, people born between 6 March 1961 and 5 April 1977 will be eligible to claim the State Pension once they turn 67.

It's vital to be aware of these potential changes now, especially if you have aretirement plan in place. All those affected by modifications to their State Pension age will receive a letter from the Department for Work and Pensions (DWP) well in advance. Under the Pensions Act 2007, the State Pension age for both men and women will climb from 67 to 68 between 2044 and 2046.

The Pensions Act 2014 requires a regular review of the State Pension age, at least once every five years. This review will be focused around the idea that people should be able to spend a certain proportion of their adult life receiving a State Pension , reports the Daily Record.

The UK Government has recently launched a new Pension Commission, tasked with investigating ways to boost pension savings. The commission's findings are expected to be published in 2027.

It will explore areas such as auto-enrolment saving rates, increasing savings among groups like the self-employed, and a review of the State Pension age.

Dr Suzy Morrissey will provide a report on factors the UK Government should consider regarding the State Pension age, while the Government Actuary's Department will prepare a report on the proportion of adult life spent in retirement.

The review of the State Pension age will take into account life expectancy along with various other relevant factors when determining the State Pension age. Following the review's conclusions, the Government may decide to make changes to the State Pension age.

However, any suggested changes would need to be approved by Parliament before becoming law. HM Revenue and Customs (HMRC) has disclosed that over 10,000 payments totalling £12.5 million have been made by individuals using the new digital service to boost their State Pensions since its launch last year.

However, those aiming to maximise their retirement income through the contributory benefit only have a few weeks left to address any gaps in their National Insurance (NI) records dating back to 2006.

Typically, people can only make voluntary contributions for the previous six tax years, and after the deadline of 5 April this year, the standard six-tax year limit will be reinstated.

In 2023, the former government extended the deadline for making voluntary NI contributions to 5 April 2025 for those affected by new State Pension transitional arrangements, covering the tax years from 6 April 2006 to 5 April 2018. This extended deadline has given people more time to consider their options and make their contributions.

Men born after 6 April 1951 and women born after 6 April 1953 are eligible to make voluntary NI contributions to increase their New State Pension. Some may be entitled to NI credits instead of having to make contributions, so they will need to check and decide what is best for them.

People can find out more about making voluntary contributions on GOV.UK here. People of working age can also check their State Pension forecast on GOV.UK here.

Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, clarified: "People typically need at least 10 qualifying years of NI (National Insurance) contributions to receive any state pension at all and at least 35 years to receive the full new State Pension - though they don't need to be consecutive years.

"Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing years. This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits, which fill the gaps, such as those who have been sick, were unemployed or took time out to raise a family or care for elderly relations.

"Plugging gaps in your record is relatively straightforward since the Government rolled out its new NI payments services in April last year - a State Pension forecast tool that has been checked by 3.7m since its launch." She continued: "People simply need to log into their personal tax account or the HMRC app to not only view any payment gaps but also check if they can plug those gaps directly through the Government's digital channels.

"A short survey assesses the person's suitability to pay online with those eligible to pay directly given a series of options to plug any gaps depending on when someone wants to stop working. Calculating whether to top up can be confusing though and ultimately there is no point paying for more years than you need because you won't get that money back."

Ms Haine further clarified: "People who might need to top up include those that took a career break as well as low earners or expatriates living and working abroad. Remember, this deadline has been extended a couple of times in the past, which makes it more likely the Government will stick to the April cut-off point this time around.

"For this reason, those that think they might need to take action should start the process now."