The Department for Work and Pensions (DWP) has confirmed that state pensioners will face a longer wait for payments following a rule change in June. As part of a gradual rollout, the DWP is increasing the state pension age for retirees.
State Pension Age Changes
A DWP calculator helps individuals determine when they will reach their State Pension age based on current legislation, using their gender and date of birth. The Pensions Act 2014 mandates a review of the State Pension age at least once every five years.
The Labour government does not plan to revise existing timetables for equalising the State Pension age to 65 or raising it to 66 or 67. However, the timetable for increasing the State Pension age from 67 to 68 could change following a future review.
Approval Process
Any future changes must be approved by Parliament before becoming law. The Pensions Act 2014 accelerated the increase in the State Pension age from 66 to 67 by eight years.
New Phasing for Those Born in 1960
The State Pension age for men and women will increase to 67 between 2026 and 2028. The government has also changed the phasing of the increase. Instead of reaching State Pension age on a specific date, people born between 6 April 1960 and 5 March 1961 will reach it at 66 years plus a specified number of months.
Under the new rules, retirees born between 1 June and 5 June 1960 will reach State Pension age at 66 years and 3 months. Those born from 6 June 1960 onwards, through the end of June, will reach it at 66 years and 4 months. This means, theoretically, their payments would begin in October.
Individuals born in the first few days of June will theoretically reach State Pension age by September. For those born after 5 April 1969 but before 6 April 1977, the Pensions Act 2007 already set the State Pension age at 67.
