The official age at which millions of Britons can claim their State Pension is on the rise, with significant changes set to reshape retirement plans. The government has confirmed the State Pension age will increase from 66 to 67, a process beginning in April 2026 and completing by 2028.
The Timeline of Change
This planned shift has been legislated since 2014, but the concrete timeline is now coming into effect. The increase from 66 to 67 will be fully implemented for all UK men and women by 2028. Looking further ahead, a subsequent rise from 67 to 68 is scheduled to roll out between 2044 and 2046.
The Department for Work and Pensions (DWP) initiated its third review of the State Pension age in July, examining the sustainability of the system. This review considers critical factors like life expectancy trends, the state of the labour market, and the overall cost to the public purse. The financial pressure is clear: forecasted expenditure on the State Pension for 2025/26 is £146 billion, with DWP predictions suggesting this will jump to £169 billion by 2029/30.
Financial Support and Future Projections
Current pensioners are protected by the Triple Lock mechanism, which guarantees their payments increase annually by the highest of three measures: average earnings growth, Consumer Price Index (CPI) inflation, or 2.5%. The Labour Government has pledged to maintain the Triple Lock for the duration of its term.
Payment rates for the upcoming 2026/27 financial year have been confirmed. Those entitled to the full New State Pension will receive £241.30 weekly (up from £230.25), amounting to £12,547 annually. Recipients of the full Basic State Pension will get £184.90 weekly (up from £176.45), or £9,614 per year.
However, eligibility for the full New State Pension is contingent on an individual's National Insurance record, typically requiring around 35 qualifying years. At least 10 years of contributions are needed to receive any State Pension at all. Latest DWP statistics show 13 million people currently claim the State Pension, with 34% on the New State Pension and 66% on the Basic scheme.
Risks and Readiness for a Later Retirement
Experts warn that accelerating the planned rise to age 68 could have severe consequences. Research from Phoenix Insights suggests around 3 million people would see their retirement delayed if the increase to 68 was brought forward to the early 2040s, for instance between 2041 and 2043.
Patrick Thomson, Head of Research Analysis and Policy at Phoenix Insights, highlighted the dilemma: "Accelerating the State Pension age could mitigate some of the cost challenge, but recent life expectancy projections are less optimistic making policy change potentially more difficult." He emphasised that not everyone will be able to work to a later State Pension age.
The research also uncovered concerning gaps in preparedness. It found that 45% of adults expect to work beyond their State Pension age to supplement savings, while a third (35%) of those aged 60-65 have no private pension savings at all. Only 18% of adults believe they could live on the State Pension alone in retirement.
Mr Thomson stressed the need for supportive policy: "It’s important that any future change to the State Pension is combined with policy interventions to support greater retirement adequacy, including enabling people to remain in work later in life and boosting pension saving through auto-enrolment."
The government remains bound by the principle of providing a 10-year notice period for any changes to the State Pension age, a rule designed to prevent a repeat of the situation that affected an estimated 3.5 million women born in the 1950s. Another review of the State Pension age is expected during the current parliament, which should offer more clarity on the exact timetable for the future increase to 68.
