The Department for Work and Pensions is being urged to dispatch a vital letter to “every” person in the UK born before 1976. The Institute for Fiscal Studies, or IFS, has called upon the DWP to take action amid growing concerns that many people are unaware of their state pension age.
IFS senior research economist Heidi Karjalainen cautioned that only two in three individuals in their early-to-mid-60s correctly identify their retirement age as 66, with just 20 per cent of those whose state pension age falls between 66 and 67 doing so accurately.
“This gap in awareness is concerning because it can lead to financial risks,” warned Karjalainen. “And for most, the state pension will represent a large part of their retirement resources,” Karjalainen added.
“Clear and timely communication of any future increases in the SPA is important,” warned Karjalainen.
The IFS has recommended that the government write to individuals around their 50th birthday (those born in and around 1976), outlining their currently legislated or anticipated state pension age, while guaranteeing no alterations to the state pension age for anyone within 10 years of reaching it.
“This would help give people confidence about when they can expect to receive a state pension and facilitate financial planning in the run-up to retirement,” Karjalainen added. You become entitled to the State Pension once you reach the Labour government’s official retirement age.
The age at which this applies depends entirely on when you were born. The State Pension age is currently being incrementally raised from 66 to 67 between April 2026 and April 2027 for both men and women.
A subsequent increase to 68 is scheduled to take place between 2044 and 2046, according to Money Saving Expert.
