The UK government has confirmed a significant change to the State Pension age, which will begin rising from 66 to 67 next year. This long-planned adjustment will be fully implemented for all eligible men and women across the country by the year 2028.
Who Will Be Affected by the State Pension Age Change?
The increase, originally brought forward by eight years under the Pensions Act 2014, will directly impact individuals born between specific dates. If your birth date falls between 6 March 1961 and 5 April 1977, you will now reach your State Pension age on your 67th birthday, rather than at 66.
The Department for Work and Pensions (DWP) has stated that it will write to everyone whose retirement plans are affected by this alteration to inform them of their new personal timeline.
Future Reviews and Further Increases
This is not the final planned rise. A further increase from 67 to 68 is currently scheduled to take place between 2044 and 2046. The government is legally required to review the State Pension age regularly, with the next major review due to report by March 2029.
Chancellor Rachel Reeves has commented that it is "right" to examine the qualifying age as life expectancy in the UK changes, indicating that future adjustments remain a possibility based on demographic trends.
State Pension Payments and the Triple Lock Guarantee
Despite the age increase, current pensioners are set to see their incomes rise. Thanks to the government's triple lock mechanism, the State Pension is set for a significant boost in April. The triple lock guarantees that payments increase by the highest of three measures: average earnings growth, Consumer Prices Index (CPI) inflation, or 2.5%.
With the upcoming increase aligned to wage growth, payments are set to rise by 4.8%. This means:
- Those on the full New State Pension will see their weekly amount rise to £241.30, equivalent to roughly £12,548 per year.
- Those receiving the Basic State Pension will get approximately £184.90 per week.
It is important to note that not every pensioner qualifies for the full amounts, as individual entitlement depends on National Insurance contribution history.
The combined effect of the rising pension age and the protected increases for current retirees highlights the evolving landscape of retirement planning in the UK, affecting millions of workers and pensioners.
