The State Pension age is set to start increasing next year and be fully implemented for all men and women across the UK by 2028
The State Pension age is set to increase from 66 to 67 next year, with the hike expected to be fully in place by 2028.
This planned alteration to the official retirement age has been on the books since 2014, with another State Pension age rise from 67 to 68 slated to occur between 2044 and 2046. The regular payout of up to £230.25 per week is available to those who have hit the UK Government’s eligible retirement age and have clocked up at least 10 years’ worth of National Insurance contributions.
A lot of people nearing the official retirement age this year (or next) and eligible to start claiming State Pension from the Department for Work and Pensions (DWP), or those nearing 55 and keen to start drawing from a personal or workplace pension, might not know about a handy checklist by the Citizens Advice network to aid in preparing for retirement.
This nine-point checklist is an excellent starting point if you’re close to concluding your working life and unsure about what financial support is available in later life to help you make the most of your retirement, reports the Daily Record.
Retirement checklist
Below is a brief summary of what you should consider as you near retirement.
- Calculate your expected income and consider how your expenditure might alter once you retire – the Citizens Advice Budgeting Too l can assist with creating a budget.
- If you’re receiving benefits, inform the provider about your retirement plans – you may need to apply for a different benefit or the amount you receive could change.
- Investigate whether you’re eligible for any new benefits – you might qualify for benefits such as Carer’s Allowance, Carer Support Payment, Housing Benefit or a Council Tax Reduction.
- Determine how much remains on your mortgage (if applicable) – you might wish to clear the remaining balance with a lump sum, but it’s advisable to seek financial advice first.
- Obtain an estimate of your State Pension – the GOV.UK State Pension calculator can help with this.
- Locate any pension providers that you’ve lost touch with – the Pension Tracing Service can assist with this. You can reach them on 0800 731 0193 or use their online form to find a lost pension.
- Contact all your pension providers and inform them of your retirement plans – they’ll typically send you crucial information about your pension.
- Seek financial advice or assistance from MoneyHelper (formerly Pension Wise) – particularly if you have a personal pension, to ensure you’re aware of all your options. You might need to pay for independent financial advice, but it could prove beneficial in the long term.
- Think about leaving your pension pot to someone when you pass away – bear in mind that there will be tax implications for doing this, so it’s advisable to consult with your pension provider or an independent financial adviser.
Find out more about preparing your finances for retirement on the Citizens Advice Website here.
Changes to State Pension age
It’s crucial to be mindful of the upcoming change to State Pension age, especially if you already have a retirement plan in place. All those affected by changes to their State Pension age will receive a letter from the DWP well in advance.
Who will be affected by the State Pension age rise:
- People born on April 6, 1960 will reach State Pension age of 66 on May 6, 2026 while those born on March 5, 1961 will reach State Pension age of 67 on February 5, 2028
Anyone of any age can use the online tool at GOV.UK to check their State Pension age, which can be an essential part of planning your retirement.
You can use the State Pension age tool to check:
- When you will reach State Pension age
- Your Pension Credit qualifying age
- When you will be eligible for free bus travel
Check your State Pension age online here.