The Department for Work and Pensions (DWP) has confirmed a new retirement age for all working households, with the state pension age rising to 67 by 2028. This change, already underway, affects millions of people across the UK.
State Pension Age Increase Details
Under the Pensions Act 2014, the increase from 66 to 67 has been brought forward by eight years. The DWP explains that this rise has already started, and a further increase from 67 to 68 is currently scheduled to take place between 2044 and 2046. However, the DWP notes that this timetable could still be reviewed in the future.
Qualifying for the State Pension
Alice Haine, Personal Finance Analyst at Bestinvest by Evelyn Partners, highlights that people typically need at least 10 qualifying years of National Insurance (NI) contributions to receive any state pension at all. To receive the full new state pension, at least 35 years of contributions are required, though these do not need to be consecutive.
It is important to remember that the state pension age is not a forced retirement age. Individuals can continue working beyond 67 if they wish. The DWP age simply determines when a person qualifies for state pension payments.
Filling Gaps in NI Contributions
Plugging gaps in NI contributions can be costly, so it is crucial to evaluate whether purchasing missing years is necessary. Factors to consider include how many more years you plan to work and whether you qualify for NI credits. Credits can fill gaps for those who have been ill, unemployed, or taken time out to raise a family or care for elderly relatives.
A short survey assesses a person's suitability to pay online, with eligible individuals given options to plug gaps depending on when they want to stop working. Ms Haine advises that calculating whether to top up can be confusing, and ultimately there is no point paying for more years than needed because the money will not be refunded.
Expert Advice from Martin Lewis
Money Saving Expert's founder Martin Lewis, known for his work with the BBC and ITV, explains that you receive the state pension when you reach the government's official retirement age. What that age is depends on when you were born. The state pension age is currently being gradually increased from 66 to 67 between April 2026 and April 2028 for both men and women. A further rise to 68 is due between 2044 and 2046.
