The state pension rules are changing (Image: Getty)
A pension expert has urged people to check how they are affected by some key changes to DWP rules. Some major changes to DWP qualifying rules are coming in now and risk catching people off guard.
The state pension is a key part of many people’s retirement finances, so it’s important to understand how much you’ll get and when you can claim the support. A crucial change is underway here, as the state pension age is moving up.
The access age is increasing from 66 to 67, going up in stages between April 2026 and April 2026. Lily Megson-Harvey, policy director at My Pension Expert, warned some people may not realise this affects them.
She said: “Those in their late 40s and early 50s may have been aware of changes to the state pension age when they were first announced but haven’t revisited how those changes affect them more recently. For many, retirement can still feel some way off, so it’s easy for these details to fall down the priority list.
“But as the state pension age shifts, that gap between when people expect to retire and when they can access their state pension can become more significant.” She urged people to regularly check over the rules.
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She pointed to two Government tools you can use to understand when it comes to your state pension: “Checking your state pension age and forecast is a simple step, but one that can make a meaningful difference to how you plan for later life.”
The gov.uk website has a tool which will show you your state pension age and also when you can claim Pension Credit. You can claim this benefit when you reach state pension age, and you don’t have to be claiming your state pension to get the support.
It’s definitely worth checking if you can get this extra support, as the average Pension Credit claim is worth more than £4,000 a year in financial aid. There is another tool on the Government website to check your state pension forecast.
This will show you how much state pension you are on track to receive, and if you can increase your entitlement. You build up your state pension entitlement through paying National Insurance contributions.
You typically need to have paid 35 years’ worth of contributions to get the full new state pension. This currently pays £241.30 a week.
If you have any gaps in your record, you may be able to pay to fill these in. You can buy contributions up to six tax years ago.
Future changes to the state pension
As the cost of the state pension for the taxpayer continues to ramp up, there are growing concerns the Government may have to restrict the benefit, either by raising the state pension age, or changing the triple lock policy for a less generous increase.
The triple lock ensures payments go up each April in line with the highest of 2.5 percent, the rise in average earnings or inflation. A future increase to the state pension age is already on the calendar, with plans to move it up from 67 to 58 between 2044 and 2046.
Ms Megson-Harvey was asked if changes to the state pension age or to the triple lock are more likely. She said: “Both options are likely to remain firmly on the table, as the Government looks to balance affordability with the need to support retirees.
“Raising the state pension age is one way to reflect increasing life expectancy and reduce long-term costs, but it can have a significant impact on individuals, particularly those who may not be able to work longer. On the other hand, changes to the triple lock could affect the value of the state pension over time, which raises its own concerns around adequacy.”
She said it’s important for the Government to clearly tell people about any future changes once they are confirmed. She said: “Clear communication and access to advice are so important.
“People need to understand not just what is changing, but what it means for them, so that they can plan accordingly and maintain confidence in their financial future.”