Around three million older people in Britain are receiving letters from the Department for Work and Pensions about changes to the state pension. The letters explain how payments might be affected and what people may need to do.
DWP minister Torsten Bell has asked people to check their state pension eligibility online before major changes to the qualifying age start next month.
When speaking to the Work and Pensions Committee the minister mentioned digital tools on the Government website that help people find out when they can claim their state pension.
Mr Bell told MPs that there are digital tools that let people know their state pension age. People just need to enter their date of birth into the Work out your State Pension age tool and it gives them an immediate answer.
The age for claiming state pension will start rising from 66 in April & will gradually increase to 67 by April 2028. The department has already sent 3 million letters to people in the 67 cohort who will reach state pension age after 2028.
Mr Bell said the previous Conservative government contacted everyone affected by the phased changes in 2016 and confirmed the current Government will continue this approach for those nearing retirement.
Advertising campaigns are part of the communication strategy. The minister explained that adverts have been placed encouraging people to check their state pension age. Some of that involves radio campaigns where evidence shows they are most likely to work.
People have higher trust in radio advertising than other forms. Those born between 6 April 1960 and 5 March 1961 will have different pension ages depending on their exact date of birth as the transition happens over the two year period.
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The Government’s online tool also lets users find out when they become eligible for free bus travel. According to a survey mentioned by Mr Bell most people approaching retirement have found the process of discovering their pension age quite simple.
The minister said this is good news and noted that 96 per cent of those aged 60 to 64 found it very or fairly straightforward to access this information. The department’s efforts focus on directing people towards these digital resources.
The DWP is working closely with employers to make sure businesses understand the changing pension landscape. Mr Bell explained that they work with HMRC who have bulletins that go directly to employers.
It is important that it is not just about individuals knowing about the state pension age. The minister stressed that companies need to expect staff either needing or choosing to stay in employment for longer periods.
Looking further ahead another increase from 67 to 68 has been scheduled for between 2044 and 2046. The rise from 66 to 67 was originally proposed by the previous Conservative Government and is expected to save the Treasury around £10 billion.
