An age rule change that will take effect next year will cause anyone born after April 1960 to have a delay in getting their State Pension. The State Pension age will increase starting in 2026, according to the Department for Work and Pensions (DWP), and the change will be implemented gradually over a year.
Currently, both men and women can apply for the State Pension after they turn 66, but starting the following year, the age will rise to 67.
After being raised from 65 between December 2018 and October 2020, the existing State Pension age will now be raised once more between 2026 and 2028.
People who were born between April 6, 1960, and March 5, 1961, will be impacted by the age increase to 67, which will be applied gradually. Some people will be closer to 66 when they receive their State Pension because they were born during the transition period, while others will be almost 67 when they receive their first payment. These people will still be eligible to receive their State Pension at age 66 in spite of the age increase, but they won’t be able to do so right away.
According to the Express, the phased age rise means that people would essentially postpone their payout until they reach State Pension age at 66 years and a specific amount of months.
The DWP said: “The Pensions Act 2014 brought the increase in the State Pension age from 66 to 57 forward by 8 years. The State Pension age for men and women will now increase to 67 between 2026 and 2028.
“The government also changed how the increase in State Pension age is phased so that rather than reaching State Pension age on a specific date, people born between 6 April 1960 and 5 March 1961 will reach their State Pension age at 66 years and the specified number of months. For people born after 5 April 1969 but before 6 April 1977, under the Pensions Act 2007, the State Pension age was already 67.”
The following timeline has been established by the DWP for the 2026-2028 period when the State Pension age will be raised from 66 to 67: Everyone born after April 5, 1977, will receive their State Pension at age 67.
However, there are plans to raise the age to 68 between 2044 and 2046, which will result in an even longer wait for younger generations to receive their payout.
According to the DWP, life expectancy is one of the “range of factors” that are taken into consideration when determining age hikes, and any modifications must be approved by Parliament before becoming law.