Five key Qs answered as state pension age increase to see millions work longer

25 January 2023 , 07:00

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The current state pension age for women and men retiring now is 66, but it will rise to 67 between 2026 and 2028 (stock image) (Image: Getty Images/iStockphoto)

The state pension age could be set to rise to 68 by the end of the 2030s in a move that would mean millions of Brits have to work longer.

Your retirement age is the earliest age you can start claiming your state pension from the Government.

This is separate from any private or workplace pension you may have.

The current state pension age for women and men retiring now is 66, but it will rise to 67 between 2026 and 2028.

A further increase to 68 was not due to happen until 2046 - however, a review released in 2017 called for this to be brought forward.

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The review argued the state pension age should hit 68 between 2037 and 2039 due to people living longer.

A Government source was quoted as saying: “There is a real risk that more people will die before they reach retirement and can draw their pensions, given the change in life expectancy projections since 2017 if we were to bring the state pension age increase too far forward.

"That would be especially true of people in the most deprived areas of the country where life expectancy is already lower.”

Here, the Daily Mirror's Head of Business Graham Hiscott answers five key questions.

What is the state pension age?

The earliest age you can start receiving your state pension may be different to the age you can get a workplace or personal pension.

It was 65 but is now 66 and gradually increasing. It also now depends on when you were born.

What are the current plans?

The state pension age for men and women will reach 67 by 2028. As things stand, a scheduled rise to 68 is not due until 2046.

Can I boost my state pension?

There are two main ways: by deferring it or buying extra years.

The state pension age for men and women will reach 67 by 2028. As things stand, a scheduled rise to 68 is not due until 2046 (Getty Images)

What’s the point of deferring?

You don’t automatically get the state pension at your retirement age – you have to claim it. By putting off claiming, or deferring, your pension you get bigger payments later on.

This is mainly useful if you are planning to work beyond your retirement age. But be sure to do the sums on just how much money you will be giving up in the short-term.

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And what about buying extra years?

If for whatever reason you missed out on paying national insurance you can replace missing years by topping up with any spare cash you might be lucky enough to have. Buying extra years involves paying what are known as voluntary class 3 national insurance contributions.

Graham Hiscott