The UK government has confirmed that the State Pension age will increase from 66 to 67 between 2026 and 2028, affecting millions of people born after April 1960. This significant change, legislated under the Pensions Act 2014, represents the next step in the government’s long-term plan to manage pension costs in response to increasing life expectancy and an aging population. With the transition set to begin in just over a year, understanding how and when these changes will affect you is crucial for effective retirement planning.
Table of Contents
Why Is the State Pension Age Increasing?
The State Pension age increase is driven by several interrelated factors:
- Rising Life Expectancy: Despite recent fluctuations, average life expectancy in the UK has increased significantly over recent decades. Current figures from the Office for National Statistics show men can expect to live approximately 18.6 more years once they reach 65, while women can expect an additional 21.1 years.
- Demographic Shifts: An aging population means the ratio of workers to pensioners is decreasing, creating pressure on the pension system. The Office for Budget Responsibility projects that State Pension-related expenditure will rise from 4.8% of GDP in 2021-22 to 8.1% of GDP by 2071-72 if no changes are made.
- Financial Sustainability: The government aims to ensure the State Pension remains sustainable for future generations while balancing costs to current taxpayers. The Secretary of State for Work and Pensions conducted a thorough review before confirming the planned increase.
The Transition Timeline: When Will the Change Affect You?
The State Pension age increase from 66 to 67 will be phased in gradually between May 2026 and March 2028. Your specific State Pension age depends on your date of birth, as outlined in the table below:
| Date of Birth | State Pension Age | Date State Pension Age Reached |
|---|---|---|
| 6 April 1960 – 5 May 1960 | 66 years and 1 month | 6 May 2026 – 5 June 2026 |
| 6 May 1960 – 5 June 1960 | 66 years and 2 months | 6 July 2026 – 5 August 2026 |
| 6 June 1960 – 5 July 1960 | 66 years and 3 months | 6 September 2026 – 5 October 2026 |
| 6 July 1960 – 5 August 1960 | 66 years and 4 months | 6 November 2026 – 5 December 2026 |
| 6 August 1960 – 5 September 1960 | 66 years and 5 months | 6 January 2027 – 5 February 2027 |
| 6 September 1960 – 5 October 1960 | 66 years and 6 months | 6 March 2027 – 5 April 2027 |
| 6 October 1960 – 5 November 1960 | 66 years and 7 months | 6 May 2027 – 5 June 2027 |
| 6 November 1960 – 5 December 1960 | 66 years and 8 months | 6 July 2027 – 5 August 2027 |
| 6 December 1960 – 5 January 1961 | 66 years and 9 months | 6 September 2027 – 5 October 2027 |
| 6 January 1961 – 5 February 1961 | 66 years and 10 months | 6 November 2027 – 5 December 2027 |
| 6 February 1961 – 5 March 1961 | 66 years and 11 months | 6 January 2028 – 5 February 2028 |
| 6 March 1961 – 5 April 1977 | 67 years | 6 March 2028 onwards |
For example, if you were born on 15 August 1960, you’ll reach State Pension age when you are 66 years and 5 months old, which would be on 15 January 2027.
It’s worth noting that this calculation method differs from previous increases. 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 plus the specified number of months.
The Financial Impact of the State Pension Age Increase
The State Pension age increase will have significant financial implications for both individuals and the government:
For Individuals:
- Delayed Access to State Pension: Those affected will need to wait longer to receive their State Pension, potentially requiring adjustments to retirement plans.
- Extended Working Lives: Many people may need to continue working for longer, with the Office for Budget Responsibility noting that the increase from 65 to 66 led to an additional 55,000 65-year-olds remaining in employment.
- Potential Income Gap: Those unable to work until their new State Pension age may face an income gap, particularly if they have limited private pension provisions.
For the Government and Economy:
- Reduced Expenditure: The government expects to save billions in pension payments by increasing the State Pension age.
- Increased Tax Revenue: Extended working lives generate additional tax revenue, estimated at around £0.9 billion by 2029-30 for the increase to age 67.
- Reduced Welfare Costs: Fewer people claiming State Pension means lower overall welfare costs in the short term.
Current State Pension Rates (2025/26)
Understanding the current State Pension rates helps to contextualize the financial implications of the age increase:
| Pension Type | Weekly Amount | Annual Amount |
|---|---|---|
| Full New State Pension | £230.25 | £11,973.00 |
| Full Basic State Pension | £176.45 | £9,175.40 |
These rates represent a 4.1% increase from the previous year, in line with the triple lock pledge. The New State Pension applies to men born on or after 6 April 1951 and women born on or after 6 April 1953, while the Basic State Pension applies to those born before these dates.
Looking Further Ahead: The Potential Rise to Age 68
While the increase to age 67 is now confirmed, the government is also reviewing the timeline for the next increase to age 68. Under current legislation (Pensions Act 2007), the State Pension age is set to increase to 68 between 2044 and 2046. However, this timeline could be accelerated.
The government has committed to:
- Conducting another review within two years of the next Parliament to reconsider the rise to age 68
- Maintaining its principle of providing at least 10 years’ notice of any changes
- Regularly reviewing the State Pension age to ensure it remains appropriate in light of life expectancy and other relevant factors
Some experts suggest the increase to age 68 could be brought forward to the mid-2030s, following indications in the 2013 Autumn Statement that future generations should spend up to a third of their adult life in retirement.
How to Check Your State Pension Age and Entitlement
Given the complexity of the State Pension age changes, it’s advisable to check your specific State Pension age and projected entitlement. The UK government provides several online tools to help:
- State Pension Age Calculator: Check your State Pension age using the official calculator at www.gov.uk/state-pension-age
- State Pension Forecast: Get a forecast of how much State Pension you could receive and when at www.gov.uk/check-state-pension
- National Insurance Record: Review your National Insurance contribution history, which determines your State Pension entitlement, at www.gov.uk/check-national-insurance-record
Preparing for the Change: Financial Planning Considerations
With the State Pension age increase now confirmed, individuals should consider taking proactive steps to prepare:
1. Review Your Retirement Timeline
Assess whether you need to adjust your expected retirement date based on your new State Pension age. If you had planned to retire at 66 and rely on your State Pension, you may need to reconsider your timeline.
2. Check Your Private Pension Provisions
Evaluate your workplace and personal pensions to understand your overall retirement income. Many private pensions can be accessed from age 55 (rising to 57 from April 2028), potentially bridging any gap before State Pension becomes available.
3. Consider Voluntary National Insurance Contributions
To qualify for the full New State Pension, you need 35 qualifying years of National Insurance contributions. If you have gaps in your record, you may want to consider making voluntary contributions to increase your entitlement. The government has extended the deadline to pay voluntary contributions for years between April 2006 and April 2018 until April 2025.
4. Explore Other Sources of Retirement Income
Consider whether you have other potential sources of income for retirement, such as investments, property, or part-time work, which could supplement your pension.
5. Seek Professional Financial Advice
Given the complexity of retirement planning, consulting with a financial advisor can help you develop a personalized strategy for navigating the State Pension age increase.
The Wider Context: Comparing the UK to Other Countries
The UK’s State Pension age increase reflects a global trend as countries respond to aging populations and increased life expectancy. Many developed nations are implementing similar changes:
- Germany: Gradually increasing retirement age to 67 by 2031
- Italy: Linking retirement age to life expectancy, with retirement age around 67
- Netherlands: Increasing to 67 by 2024, then linking to life expectancy
- Australia: Increasing to 67 by 2023
- USA: Increasing to 67 for those born in 1960 or later
Frequently Asked Questions
Will the State Pension age continue to increase beyond 67?
Yes, the current legislation already includes provisions to increase the State Pension age to 68 between 2044 and 2046, though this timeline could be accelerated following future reviews.
Does the State Pension age increase affect both men and women equally?
Yes, the increase to 67 applies equally to both men and women. This follows the equalization of State Pension ages, which was completed in November 2018.
If I’ve already started receiving my State Pension, will these changes affect me?
No, if you’re already receiving your State Pension, these changes won’t affect your payments. The increase only affects those who haven’t yet reached their State Pension age.
Can I still receive my workplace or private pension before reaching State Pension age?
Yes, most workplace and private pensions can be accessed from age 55 (rising to 57 from April 2028), regardless of the State Pension age. However, specific rules vary between pension schemes.
Conclusion
The increase in the State Pension age to 67 between 2026 and 2028 represents a significant change to the UK pension landscape. While the change aims to ensure the long-term sustainability of the pension system, it will require many individuals to reconsider their retirement plans.
By understanding when and how you’ll be affected and taking proactive steps to prepare, you can help to ensure a secure financial future despite the changing pension age. Regular reviews of the official government guidance and your personal financial situation will be essential as further changes may be implemented in the years to come.
For the most up-to-date information and personalized advice, it’s advisable to check the official government resources and consider consulting with a financial advisor about your specific circumstances.
