The pension age is shifting in stages – you should receive a letter from the Department for Work and Pensions if you’ll be impacted.
You might be impacted by the change if you’re hoping to claim your pension soon (Image: GETTY IMAGES)
Millions will be impacted as the state pension age is set to rise to 67 from Monday. Payments will go up in line with the increase in age. Currently, the state pension age is 66, however, over the next two years, it will increase in stages until it reaches 67.
If you were born between April 6 and May 5, 1960, you will have to wait an extra month before you are paid a pension. After the change was announced more than a decade ago, it will finally come into play soon. The decision has been made to reflect longer life expectancy with many younger people anticipating working into their 70s.
Rachel Reeves has spoken about what the change will mean for Brits (Image: GETTY IMAGES)
The rise from 66 to 67 is expected to save the Treasury about £10bn a year by 2030.
You will need 35 years of qualifying national insurance contributions to get a full state pension.
You may be wondering why the State Pension age is rising. According to International Business Times, the increase is a response to long-term demographic and economic pressures. With people living longer and the population ageing, the cost of state pensions is climbing.
Reports say there may even be a further increase from 67 to 68 between 2044 and 2046. Although the government is still reviewing any further pension age rises.
If you are impacted, you should receive a letter from the DWP (Image: GETTY IMAGES)
All those affected by changes to their state pension age will receive a letter from the Department for Work and Pensions (DWP).
A Government review is due in March 2029 and Chancellor Rachel Reeves has said it would be “right” to look at the age at which people can receive the state pension as life expectancy increases.
A spokesman for the Department for Work and Pensions, said: “We’re committed to providing financial support for people at any age who need it.
“Those that have not reached state pension age can access a range of support such as universal credit and other means-tested and disability-related benefits.”