Millions of households across the UK will have to wait an extra year to receive their state pension under a major rule change set to begin next year.
What is Changing and When?
The government has confirmed that the state pension age will start to increase from 66 to 67, beginning in 2026. This significant shift will be fully implemented over a two-year period, concluding in 2028.
Anyone born after 6 March 1961 will be affected. This means individuals currently aged up to 64 will not be eligible for their state pension until they reach the age of 67. The change primarily impacts Britons currently in their 50s and early 60s who were anticipating retirement at 66.
Implications for Retirement Planning
This upward shift in the pension age means many people will need to keep working for longer than they had originally planned. Households are being urged to review their financial circumstances carefully to ensure they are not caught out by the change.
Depending on personal savings and private pension provisions, the delay could necessitate extended careers or a reassessment of retirement income. Experts stress the importance of proactive financial planning to bridge the one-year gap.
Looking Further Ahead: The Rise to 68
The planned increases do not stop at age 67. The state pension age is already scheduled to rise again to 68 in the mid-2040s. However, an ongoing government review could bring this date forward.
Rachel Vahey, Head of Public Policy at investment platform AJ Bell, commented: "An increase to state pension age from 66 to 67 is already slated to happen between 2026 and 2028. But it's less clear what will happen after that. There is also an increase to age 68 pencilled in for 2046, but a faster increase is definitely on the cards."
This indicates that further changes to the retirement landscape are likely, making long-term financial planning more critical than ever for UK workers.
