State Pension Eligibility

Under the 2011 Pensions Act, the pension age for women was increased to 65, before becoming 66 for both men and women.

This will rise to 67 for people retiring between 2026 and 2028. Previously, women could get their state pension at 60, while men could start claiming at 65.

The age at which you can start claiming your state pension also depends on when you were born.

Men and women born after April 6, 1978 have to wait slightly longer to claim their pension, whereas those born before April 6, 1970 will be able to claim slightly earlier.

You can check your state pension age using GOV.UK’s handy tool.

All you need to do is enter your date of birth and it’ll tell you when you’ll be able to start claiming.

Will the State Pension Age Change Again?

It will reach 67 by 2028 and is expected to become 68 in the future.

Retirement age and amount received are regularly reviewed – around once every five years – to ensure that the pension amount is fair and the retirement age remains in line with average life expectancy.

Life expectancy increased from 78.5 in 1948 to around 87.8 in 2017.

It makes sense then that amendments to the pension age are necessary, to control the number of people above the UK pension age.

Other economic factors can also affect the state pension age for men and women.

So yes, the state pension age will change again.

New Proposal For an Increase to State Pension Age For Women and Men

Under the current law, the State Pension age is due to increase to 68 between 2044 and 2046.

Following a recent review, the government has announced plans to bring this timetable forward.

If approved by parliament, the State Pension age would instead increase to 68 between 2037 and 2039.

These changes will likely increase the age that women and men retire in the UK.

Personal and Workplace Pensions

The ‘Pension Freedom’ rules mean that your pension can be accessed while you’re still working.

These rules mean that you can access your personal pensions at the age of 55  (increasing to 57 in 2028), without getting an unauthorised payment tax charge.

Most modern workplace pensions and personal pensions are defined contribution schemes, with the pension’s value being determined by money contributed and investment performance over time.

When you reach this age (currently 55), you can take 25% of your personal pension tax-free as a lump sum or in several smaller amounts. You can then use the rest as you wish, either by making more withdrawals (and paying income tax) or by buying an annuity.

An annuity is a product that provides you with a guaranteed income for the rest of your life, depending on the size of your personal pension and other factors like age and health.

When Should You Retire?

Retirement ages are considered to be when you can access pensions. With that being said, if you wish to retire or simply stop working then there’s no set age.

For many people, retirement means the ability to stop working while remaining financially secure, with a state pension being the thing that provides this much-needed security.

The earlier you begin your retirement planning and start saving, the better. This way, you won’t need to contribute as much to your pension each month as a healthy amount should have already built up.

To better understand your options and whether early retirement is financially viable, we’d recommend seeking professional retirement advice. This will give you a better understanding of your financial situation.