Explore the Latest on 2024 State Pension Age Changes
State Pension Age Changes
The age for receiving the State Pension has changed due to government decisions, gradually increasing from 65 to 68 for both men and women. This means people will collect their pension at a younger age due to longer life expectancy. The shift also affects when individuals can apply for Pension Credit and other means-tested pension benefits. Research indicates that middle-aged workers in the UK may have to wait until they are 71 to retire, reflecting the impact of rising life expectancy and declining birthrates.
Keep reading this article for a comprehensive overview of State Pension Age Changes and all the essential details you need.
What is State Pension?
Starting in April 2026, the state pension age in the UK will gradually increase from the current age of 66 to 67 over the following two years.
Once you reach a certain age and have made national insurance contributions, you become eligible for payments from a government-funded pension. These benefits are usually received every four weeks. It’s advisable to supplement the state pension with a personal pension to ensure a more comfortable retirement, as the state pension alone may not be sufficient.
What Are the Age Eligibility Changes in year 2024?
When you hit state pension age, currently at 66 for both men and women, you become eligible for the state pension. In 2020, the age increased to 66, and the next hike is expected between 2026 and 2028, reaching 67 for those born after April 1960. Legislation indicates another increase to 68 in 2044 or 2046, affecting those born after April 1977.
Experts suggest that due to a significant number of people leaving work before reaching state pension age, often due to preventable illness, there might be a need to consider raising this age restriction even further.
State Pension Age Increase Reason
The state pension age undergoes a review every six years, considering workforce changes and employment patterns. This periodic review allows for potential adjustments in the future. Factors such as shifts in life expectancy play a significant role, with the UK experiencing an increase in life expectancy over the past four decades due to improved working and healthcare conditions.
To manage costs as the number of individuals above state pension age rises, the government may consider raising the eligibility age for benefits. Striking a balance between protecting taxpayers’ interests and ensuring that most people live long enough to receive a state pension is crucial in this process.
State Pension Age Amount 2024
In April 2024, your State Pension will see a boost in amount, thanks to the government maintaining the triple lock, reinstated after being halted in 2023. This means an 8.5% increase, the second-largest in State Pension history, in alignment with average wage growth between May and July 2023. Both the previous basic State Pension and the new flat-rate State Pension recipients will be affected, as confirmed in this year’s Autumn Statement.
This raise translates to a weekly payment of £221.20 (up from £203.85) for those eligible for the full new State Pension. Similarly, individuals on the older basic State Pension, reaching State Pension age before April 2016, will now receive £169.50, up from £156.20.
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