The state pension age is being raised from 66 to 67, and the change is being phased in between April 2026 and April 2028. Many people may still believe the old rules apply, but those affected could face a gap in their income.
Money experts at savings account provider Raisin UK have raised concerns about people caught in the transition as the qualifying rules change. The state pension age has been 66 for both men and women since October 2020, so it might seem that this age still applies.
Check your own state pension age
Kevin Mountford, personal finance expert and co-founder of Raisin UK, said: "Many people still think of 66 as the standard state pension age."
"The move from 66 to 67 is already being phased in, so some people will have to wait beyond their 66th birthday before they can claim. For those caught in the transition, their state pension age could be 66 years and a number of months, rather than simply 66 or 67."
Mr Mountford urged people to check when they will become eligible for their payments. He said: "Anyone approaching retirement should therefore check their own state pension age rather than relying on what applied to a partner, friend or older relative. That matters because even a few extra months without the state pension can leave a gap that needs to be planned for."
Potential shortfall of £1,045 a month
The full new state pension currently pays £241.30 a week, the equivalent of around £1,045 a month. Missing out on a few months' worth of payments could leave a sizeable shortfall in income.
You can check your state pension age using a tool on the Government website.
Winter costs and energy bills
State pension payments go up each April in line with the triple lock policy, which guarantees an increase in line with whichever is the highest of three numbers. Experts think the earnings number could be the deciding factor next year.
Ofgem has confirmed the energy price cap will increase 4 per cent for the October to December period, with fears it could go up again in January.
Mr Mountford shared some thoughts on how to get ready for the colder months. He said: "One of the first things pensioners should check before winter is whether any cash savings are earning a competitive rate. With household costs still high, leaving money in a low-paying account can mean missing out on interest that could help offset some of those extra expenses."
"It is also sensible to keep an accessible cash buffer for higher winter bills, so you are not forced to dip into money set aside for longer-term priorities."
