State pension warning as retirement age may rise ‘earlier than planned’ | Personal Finance | Finance
The Pensions Act of 2014 meant the increase of state pension age to 67 has been brought forward by eight years. It is now set to rise to 67 between 2026 and 2028 for Britons, who may change their retirement plans as a result.
A new review is now considering whether the increase to 68 should be brought forward to 2037 to 2039, instead of 2044 to 2046.
However, experts are even speculating the rise to 68 could be brought forward even further.
Steven Cameron, pensions director at Aegon, said: “As well as uncertainty over future increases to the state pension, we’ll hear more in the new year on the future age at which people can draw their state pension.
“There is speculation this could go up to age 68 earlier than planned, possibly from the early to mid 2030s.”
READ MORE: 10 key dates to look out for in 2023 for your money
For example:
April 6, 1960 – May 5, 1960: 66 years and one month
May 6, 1960 – June 5, 1960: 66 years and two months
June 6, 1960 – July 5, 1960: 66 years and three months
July 6, 1960 – August 5, 1960: 66 years and four months
August 6, 1960 – September 5, 1960: 66 years and five months
September 6, 1960 – October 5, 1960: 66 years and six months
October 6, 1960 – November 5, 1960: 66 years and seven months
November 6, 1960 – December 5, 1960: 66 years and eight months
December 6, 1960 – January 5, 1961: 66 years and nine months
January 6, 1961 – February 5, 1961: 66 years and 10 months
February 6, 1961 – March 5, 1961: 66 years and 11 months
March 6, 1961 – April 5, 1977*: 67
*Under the Pensions Act 2007, people born after April 5, 1969 but before April 6, 1977, already had the state pension age of 67.
It is not yet clear whether the state pension age will continue to rise past 68, once it eventually reaches this point.
Any increases are likely to be met with some resistance, but could be necessary according to experts.
Tom Selby, head of retirement policy at AJ Bell, weighed in on the matter, and added: “Prime Minister Rishi Sunak and his chancellor risk being caught between the devil and the deep blue sea when it comes to state pension age increases.
“A dramatic acceleration of existing plans would risk electoral oblivion, while pushing back planned rises could cost the Exchequer tens of billions of pounds.”
