The Department for Work and Pensions (DWP) has issued a warning for everyone over the age of 55 regarding changes to the state pension age. The UK State Pension age is currently rising from 66 to 67 for both men and women, with a gradual phase-in for those born between April 1960 and March 1961. For individuals born on or after April 1961, the state pension age will be fixed at 67. A further increase to age 68 is legislated to occur between 2044 and 2046.
For those concerned about waiting longer for their DWP payouts, Torsten Bell, a Labour Party cabinet minister, has highlighted a potential solution. According to the DWP's Workplace Pension Participation publication, private pensions are most commonly accessed at specific ages, including 55 (the current Normal Minimum Pension Age), 60, and 65. The average age for first-time pension access is 60.
Current trends reveal that of the 810,000 individuals who accessed their pension for the first time in 2024-25, 83% did so before reaching state pension age. Nearly two in five people (38%) first accessed their pension between the ages of 60 and 65, according to DWP findings. Mr. Bell stated: "In 2024-25, around 2.7 million individuals were receiving a private pension while still in employment, with around 1.2 million of these individuals aged between 60-66."
The Planning and Preparing for Later Life survey indicates that approximately three in five people (61%) aged 55-75 who had accessed a pension did so before fully retiring from paid work. The most common reason for accessing a pension early was to reduce or change working hours, cited by 28% of respondents. Additionally, 10% stated that it allowed them to change their type of work.
