Today is a milestone for the state pension.
If you were born between 6th October 1954 and 5th April 1960, you become entitled to your state pension on your 66th birthday.
If you were born after 5th April 1960, your state pension will be paid to you after your 66th birthday.
The state pension age is due to rise gradually until it reaches age 68.
When the state pension was introduced in 1908, it was paid to those aged 70 and above. Only one in four reached the age of 70 at the time, and life expectancy for the lucky 25% was just nine years.
In 1925, state pension age reduced to 65, and in 1940 it was reduced to 60 for women.
Since 1995, a raft of announcements have been made, nearly all of which have had the effect of increasing the state pension age.
State pension age must now be reviewed by law at least every six years.
The best way to find out when you are entitled to your state pension is by going to https://www.gov.uk/state-pension-age where you can get a personalised date.
“State Pension Age” is the date on which you become entitled to your state pension.
It is possible to defer your state pension, and it can be attractive for many to do so, particularly if you expect to pay tax at a lower rate in the future.
Andrew Tully, technical director at Canada Life, said:
The State Pension is incredibly complicated for people to understand, however it forms the bedrock for most people’s financial plans in retirement.
For the average couple, the value of the state pension is equivalent to £600,000 so it is essential that those affected by today’s rule change understand how much they are entitled to receive.
For anyone who might be unsure about their entitlement, the first step should always be asking for a State Pension forecast. This will explain when to start expecting the payments and how much you are likely to receive.
If there are any gaps, additional voluntary NI contributions can be paid to increase the amount received. People can also defer the state pension if they don’t need it and can stop receiving it once in payment if their circumstances change.