Latest news with #PensionsAct2014
Daily Record
08-07-2025
- Business
- Daily Record
Pensions expert shares five steps to avoid retirement regret in later life
The New State Pension age is set to start rising from 66 to 67 next year, with the increase due to be completed for all men and women across the UK by 2028. The Pensions Act 2014 set out the timescale for the increase in State Pension age from 66 to 67 years old and will first affect those born between April 6, 1960 and March 5, 1961. Anyone born between these dates can use a handy tool on to find out the earliest point at which they'll be eligible for their State Pension. A further State Pension age increase from 67 to 68 is set to be implemented between 2044 and 2046. 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. Everyone affected by changes to their State Pension age will receive a letter from the DWP well in advance, however, you can check your own State Pension age online here. It's important to be aware of these upcoming changes now, especially if you have a retirement plan in place. New research from Opinium on behalf of Hargreaves Lansdown found that one in five people aged over 55 said they regretted not starting their retirement planning early enough. A further 15 per cent said they wished they had contributed more while 15 per cent said they regretted assuming they would have enough saved for later life. Some 4 per cent said they wished they had made more of their employer contribution. However, well over half (57%) of over 55s said they had no retirement planning regrets. Commenting on the findings, Helen Morrissey, head of retirement analysis, Hargreaves Lansdown, said: 'It can be easy to succumb to 'set and forget' when it comes to your pension, but this leaves you open to retirement regret later on. Getting to grips with your pension earlier in your career can save you a lot of bother. 'This was the main source of retirement regret, with one in five people aged over 55 saying they wished they got started on their pension planning earlier. Not contributing enough was a bugbear for around 15 per cent, while the same proportion said they had made an error in assuming they would have enough by the time they retired. 'The bright spot of the research was that well over half (57%) of those asked said they didn't have any retirement regrets. This could be because they have a good defined benefit pension, or it could be because they've checked in on how their pensions are doing periodically and made adjustments, as necessary.' Five steps to avoid retirement regret To help people make the most of their time now to ensure a smooth retirement, Ms Morrissey shared five simple steps to follow. Keep an eye on how your pension is doing Don't 'set and forget' your pension contributions. It's important to check in on your pensions from time to time. Use a pension calculator to see what you are on track to receive – if it's enough then great, but if not, you've got time to do something about it. Boost your contributions Auto-enrolment sets minimum contributions but these on their own may not be enough to give you the retirement you need. Taking small steps such as boosting your contributions every time you get a pay rise or new job can be a relatively painless way of increasing contributions before you get used to spending the money. Can your employer do more? Many employers will keep their contributions at auto-enrolment minimums but there are employers who are willing to do more if you increase your contributions. This is known as an employer match and can really ratchet up the amount of money going in over time. Find those lost pensions If you've had several jobs, then the likelihood is you have lost track of a pension somewhere along the way. This means there could be a pot worth thousands of pounds out there that could make a huge difference to your retirement planning. If you think you've lost track of a pension, then give the government's pension tracing service a call. All you need is the company name or that of the provider. The service can't tell you if you have a pension with them, but they can give you contact details. Find out more here. Consolidation might work Once you've tracked down your pensions, it might make sense to consolidate. Having an overarching view of what you have can be a gamechanger for your planning. You may realise you have more than you thought, and this can transform your retirement planning. For instance, you may be tempted to take small pensions as cash and spend them but by consolidating them you are less likely to do this. However, make sure you aren't incurring any unnecessary costs in consolidating such as early exit penalties. It's also worth checking that you aren't missing out on valuable benefits such as guaranteed annuity rates. It also rarely makes sense to transfer out of a defined benefit pension due to the guaranteed income on offer.
Wales Online
08-07-2025
- Business
- Wales Online
DWP confirms new state pension rules starting next year
DWP confirms new state pension rules starting next year The Department for Work and Pensions (DWP) has confirmed the state pension age is rising from 2026 with the change to be gradually phased in over the course of a year The age increment to 67 will be implemented in stages (Image: Richard Swingler ) People born after April 1960 will experience a delay in receiving their state pension due to an age-rule alteration set to come into effect next year. The Department for Work and Pensions (DWP) has confirmed that the state pension age will increase from 2026 with the change being gradually introduced over a year. At present both men and women are eligible to claim the state pension upon reaching 66 but from next year this age will rise to 67. The current state pension age was established between December 2018 and October 2020, having risen from 65, and now another increase will occur between 2026 and 2028. The age increment to 67 will be implemented in stages and will affect when individuals born between April 6, 1960, and March 5, 1961, can claim their state pension. As those born within these dates fall into the transition period it means some will be nearing 66 when they receive their state pension while others will be almost 67 by the time they receive their first payment. Despite the age increase these individuals will still be able to access their state pension at 66 but not immediately after their 66th birthday. Article continues below The phased age increase implies that people will reach state pension age at 66 years plus a specified number of months, effectively delaying their payment, reports the Express. A spokesman for the DWP said: "The Pensions Act 2014 brought the increase in the state pension age from 66 to 67 forward by eight years. The state pension age for men and women will now increase to 67 between 2026 and 2028. "The government also changed the way in which the increase in state pension age is phased so that rather than reaching state pension age on a specific date, people born between April 6, 1960, and March 5, 1961, will reach their state pension age at 66 years and the specified number of months. For people born after April 5, 1969, but before April 6, 1977, under the Pensions Act 2007, state pension age was already 67." According to the DWP's schedule the state pension age will rise from 66 to 67 during the period from 2026 to 2028: Born between April 6, 1960 and May 5, 1960 - reach state pension age at 66 years and one month Born between May 6, 1960 – June 5, 1960- reach state pension age at 66 years and two months Born between June 6, 1960 – July 5, 1960- reach state pension age at 66 years and three months Born between July 6, 1960 – August 5, 1960 - reach state pension age at 66 years and four months Born between August 6, 1960 – September 5, 1960 - reach state pension age at 66 years and five months Born between September 6, 1960 – October 5, 1960 - reach state pension age at 66 years and six months Born between October 6, 1960 – November 5, 1960 - reach state pension age at 66 years and seven months Born between November 6, 1960 – December 5, 1960 - reach state pension age at 66 years and eight months Born between December 6, 1960 – January 5, 1961 - reach state pension age at 66 years and nine months Born between January 6, 1961 – February 5, 1961 - reach state pension age at 66 years and 10 months Born between February 6, 1961 – March 5, 1961 - reach state pension age at 66 years and 11 months Born between March 6, 1961 – April 5, 1977 - reach state pension age at 67 Article continues below People born post-April 5, 1977, are set to receive their state pension at 67 with plans indicating a further increment to 68 between 2044 and 2046, extending the wait for younger cohorts. The DWP asserts that the age increments consider a "range of factors", such as life expectancy, and any amendments must be ratified by Parliament to become effective. Presently there are no intentions to alter the timetable for the elevation from 66 to 67 but the progression from 67 to 68 "could change" following a review.
Wales Online
07-07-2025
- Business
- Wales Online
DWP could give £29,000 boost to millions of workers paying into pensions
DWP could give £29,000 boost to millions of workers paying into pensions A new UK Government Bill is reforming pensions, with 20 million set to benefit from the changes A major government reform will aim to create larger pension schemes (Image: Mike Kemp, In Pictures via Getty Images ) Workers earning an average wage and contributing to a pension pot throughout their career could receive a financial uplift from the Department for Work and Pensions. The government department suggests individuals could benefit by up to £29,000 by the time they retire. This is due to significant government reforms that will consolidate small pension pots, ensure schemes offer value for money, and create larger pension schemes. This figure was disclosed as the Pension Schemes Bill returns to Parliament for its second reading on July 7. Reforms in the Bill aim to assist 20 million pension savers to get more from their pension pots and be better prepared for retirement. The State Pension ag, which currently stands at 66 for both men and women, will be increasing from next year. It will gradually rise to 67 between 2026 and 2028 for those born after April 1960. The transition process is then anticipated to be completed for everyone by March 2028. The planned alteration to the official retirement age has been in legislation since 2014, with a further increase from 67 to 68, which is set to be implemented between 2044 and 2046, reports the Liverpool Echo. The UK government also modified the phasing of the State Pension age increase, meaning that instead of reaching the State Pension age on a specific date, individuals born between March 6, 1961, and April 5, 1977, will be eligible to claim the State Pension once they turn 67. Article continues below Ahead of the forthcoming adjustments, individuals will receive a letter from the Department for Work and Pensions. The Pensions Act 2014 necessitates a systematic review of the State Pension age at minimum intervals of five years. This review is guided by the belief that people ought to have the opportunity to spend a certain fraction of their adult lives in receipt of a State Pension, with an assessment of the planned rise to 68 scheduled before the conclusion of this decade. The examination of the State Pension age will take into account factors like life expectancy among others. Based on the review's outcomes, UK government may consider enacting alterations to the State Pension age. Parliament must approve any proposed amendments before they can be enacted. For money-saving tips, sign up to our Money newsletter here The Bill will bring together small pension pots worth £1,000 or less into one pension scheme At present many people struggle to keep track of multiple small pensions as they move jobs and can pay high fees as a result.. Government officials say these steps will establish the groundwork for the imminent Pensions Review which will delve into achieving a just and enduring pension structure, driving growth, and realising the government's Plan for Change. Pensions Minister Torsten Bell said: "We're ramping up the pace of pension reform, to ensure that people's pension savings works as hard for them as they worked to save. "The measures in our Pension Schemes Bill will drive costs down and returns up on workers' retirement savings – putting more money in people's pockets to the tune of up to £29,000 for an average earner and delivering on our Plan for Change." According to the pace of pension reform has ramped up with measures in the Bill set to revolutionise the pensions landscape in the coming years. Despite the advancements, significant challenges remain as these benefits are diverse for different workers and groups. In light of this, the forthcoming Pensions Review will look at issues such as pension adequacy to ensure that underserved communities are not left behind as new initiatives roll out. The reforms outlined in the Bill also aim to protect the Local Government Pension Scheme (LGPS) for the future by consolidating some £400 billion worth of assets into a limited number of proficient asset pools capable of investing in local infrastructure, housing, and clean energy. Zoe Alexander, Director of Policy and Advocacy for the Pensions and Lifetime Savings Association (PLSA), remarked: "The introduction of the Pension Schemes Bill is a significant milestone, bringing forward necessary legislation to enact important reforms that have the full backing of the pensions industry. Article continues below "This includes small pots consolidation, the Value for Money regime, decumulation options and changes to give DB funds more options for securing member benefits over the long-term. "Once fully implemented, these measures should reduce the cost of administering pensions, remove complexity for savers and help ensure schemes are maximising the value they provide members."
Daily Record
07-07-2025
- Business
- Daily Record
DWP urges people nearing retirement to check State Pension age before next year
The Department of Work and Pensions (DWP) is urging people born between certain dates to check when they will be eligible to claim their State Pension using the online tool at The State Pension age is set to start rising from 66 to 67 next year, with the increase due to be completed for all men and women across the UK by 2028. The Pensions Act 2014 set out the timescale for the increase in State Pension age from 66 to 67 years old and will first affect those born between April 6, 1960 and March 5, 1961. Anyone born between these dates is being prompted to check their State Pension age to find out the earliest point at which they'll be eligible for their State Pension. A further State Pension age increase from 67 to 68 is set to be implemented between 2044 and 2046. In a recent post on X, formerly Twitter, the DWP wrote: 'Born between 6 April 1960 and 5 March 1961? Check today to find out what your State Pension age will be.' 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. You can check your own State Pension age online here. It's important to be aware of these upcoming changes now, especially if you have a retirement plan in place. Everyone affected by changes to their State Pension age will receive a letter from the DWP well in advance. The Pensions Act 2014 provides for a regular review of the State Pension age, at least once every five years. The review will be based around the idea people should be able to spend a certain proportion of their adult life drawing a State Pension. A review of the planned rise to 68 is due before the end of this decade and had originally been scheduled by the then Conservative government to take place two years after the general election - which would have been 2026. Any review of the State Pension age will take into account life expectancy along with a range of other factors relevant to setting the State Pension age. After the review has reported, the UK Government may then choose to bring forward changes to the State Pension age. However, any proposals would have to go through Parliament before becoming law. Check your State Pension age online Your State Pension age is the earliest age you can start receiving your State Pension. It may be different to the age you can get a workplace or personal pension. Anyone of any age can use the online tool at 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 - this is at age 60 in Scotland Check your State Pension age online here. State Pension payments 2025/26 Full New State Pension Weekly payment: £230.25 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Four-weekly payment: £705.80 Annual amount: £9,175 Future State Pension increases The Labour Government has pledged to honour the Triple Lock or the duration of its term and the latest predictions show the following projected annual increases: 2025/26 - 4.1%, he forecast was 4% 2026/27 - 2.5% 2027/28 - 2.5% 2028/29 - 2.5% 2029/30 - 2.5% Recent analysis released by Royal London revealed only around half of people receiving the New State Pension last year were getting the full weekly amount - and around 150,000 were on less than £100 per week. The DWP will issue letters to all 12.9m State Pensioners in March telling them their new payment rates. This letter also encourages older people to check if they are eligible for Pension Credit. State Pension and tax The Personal Allowance will remain frozen at £12,570 over the 2025/26 financial year. The most important thing to be aware of is that people whose sole income is the State Pension will not pay income tax. However, anyone with additional income on top of their State Pension may need to pay tax. This is paid a year in arrears, so if the 2025/26 financial year's uplift takes you over the threshold, you will not receive a tax bill from HM Revenue and Customs (HMRC) until July 2026. How to get full New State Pension Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, said: 'People typically need at least 10 qualifying years of NI (national insurance) contributions to receive any State Pension at all and at least 35 years to receive the full New State Pension - though they don't need to be consecutive years. 'Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing years. This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits, which fill the gaps, such as those who have been sick, were unemployed or took time out to raise a family or care for elderly relations. 'Plugging gaps in your record is relatively straightforward since the Government rolled out its new NI payments services in April last year - a State Pension forecast tool that has been checked by 3.7m since its launch.' She continued: 'People simply need to log into their personal tax account or the HMRC app to not only view any payment gaps but also check if they can plug those gaps directly through the UK Government's digital channels. 'A short survey assesses the person's suitability to pay online with those eligible to pay directly given a series of options to plug any gaps depending on when someone wants to stop working. 'Calculating whether to top up can be confusing though and ultimately there is no point paying for more years than you need because you won't get that money back.' Ms Haine added: 'People who might need to top up include those that took a career break as well as low earners or expatriates living and working abroad."
North Wales Live
06-07-2025
- Business
- North Wales Live
DWP confirms 2026 State Pension age rise - how you will be affected
Individuals born after April 1960 will experience a delay in receiving their State Pension due to an age rule alteration set to come into effect next year. The Department for Work and Pensions (DWP) has confirmed the State Pension age is set to rise from 2026, with the change being gradually introduced over a year's time. At present, both men and women are eligible to claim the State Pension once they reach 66, but from next year, this age will increase to 67. The current State Pension age was established between December 2018 and October 2020, having risen from 65, and now another increase will take place between 2026 and 2028. The age increment to 67 will be implemented in stages and will impact when individuals born between 6th April 1960 and 5th March 1961 can claim their State Pension. As those born within these dates fall into the transition period, it means some will be closer to 66 when they receive their State Pension, while others will be nearly 67 by the time they receive their first payment. Despite the age increase, these individuals will still be able to receive their State Pension at age 66, but they won't be able to get it immediately after their 66th birthday. The phased age increase implies that people will instead reach State Pension age at 66 years and a certain number of months, effectively pushing back their payment, reports the Express. The DWP said: "The Pensions Act 2014 brought the increase in the State Pension age from 66 to 67 forward by 8 years. The State Pension age for men and women will now increase to 67 between 2026 and 2028. "The government also changed the way in which the increase in State Pension age is phased so that rather than reaching State Pension age on a specific date, people born between 6 April 1960 and 5 March 1961 will reach their State Pension age at 66 years and the specified number of months. For people born after 5 April 1969 but before 6 April 1977, under the Pensions Act 2007, State Pension age was already 67." The DWP has set out the following timetable for the increase in State Pension age from 66 to 67, which will take place from 2026 to 2028: Everyone born after April 5, 1977, will get their State Pension at age 67, although a further increase is planned for between 2044 and 2046 which will see the age rise to 68, meaning younger generations face an even longer wait to get their payment. The DWP says the age increases take a "range of factors" into account, including life expectancy, and any changes must go through Parliament before becoming law. While there are no plans to revise the timetable for the age increase from 66 to 67, the timetable for the age increase from 67 to 68 "could change" as a result of review.
