DWP State Pension age to be reviewed by Labour amid concerns over ballooning benefits bill

A major transformation is approaching for state pensioners born after 1977 from the Department for Work and Pensions (DWP). The state pension age is undergoing scrutiny by the Labour Party government due to worries about the expanding benefits bill.

Fidelity stated: "One of the most sensitive issues in the world of pensions is due to be tackled - the speed of rises in UK pension ages. The government confirmed over the summer that a review of the State Pension age (SPA) - the age at which you are eligible to claim the payment - will be held and concluded by 2029."

"It will also affect the normal minimum pension age (NMPA) - the age you can access your company pension or personal pension. This has mostly been set 10 years below the State Pension age, a practice the government may continue," reported Birmingham Live.

"As it stands, the State Pension age is 66 for both men and women. It will rise to 67 by 2028 and to 68 by 2044-46, affecting those born after April 1977. The NMPA is 55 and will rise straight to 57 on 6 April 2028.

"The review will consider the expected cost of the State Pension, and changes in life expectancy. The long-term trend of people living longer has helped increases in the State Pension age.

"However, that trend has faltered with life expectancy dipping slightly in recent years."

The government has enacted legislation for a rise from 66 to 67 in 2026-28 and to 68 in 2044-46.

Nevertheless, the timing of the increase to 68 will be examined by the independent review.

The DWP stated: "Under the Pensions Act 2007, the State Pension age for men and women will increase from 67 to 68 between 2044 and 2046. The Pensions Act 2014 provides for a regular review of the State Pension age, at least once every 5 years. The review will be based on the idea that people should be able to spend a certain proportion of their adult life drawing a State Pension. The first review must be completed by May 2017.

"As well as life expectancy, it will take into account a range of factors relevant to setting the pension age. After the review has been reported, the government may then choose to bring forward changes to the State Pension age. Any proposals to do so would, like now, have to go through Parliament before becoming law.

"The government is not planning to revise the existing timetables for the equalisation of State Pension age to 65 or the rise in the State Pension age to 66 or 67. However the timetable for the increase in the State Pension age from 67 to 68 could change as a result of the review.

"In the Autumn Statement on 5 December 2013, the Chancellor announced that this government believes that future generations should spend up to a third of their adult life in retirement. This principle implies that State Pension age should rise to 68 by the mid-2030s, and 69 by the late 2040s.

"However, the government is not currently legislating for this change - these dates are indicative only, showing a general direction of travel for future State Pension age changes."