The age at which people in the UK can claim their State Pension is scheduled to begin increasing from next year, a significant change that will affect millions. The move, which sees the pensionable age rise from 66 to 67, was accelerated by legislation passed over a decade ago.
Timeline and Phased Implementation
The increase to a State Pension age of 67 will be phased in between 2026 and 2028. This change was brought forward by eight years under the Pensions Act 2014. The government has also altered how the rise is implemented.
Instead of everyone reaching pension age on a specific date, there will be a gradual transition. Individuals born between 6 April 1960 and 5 March 1961 will reach their State Pension age at 66 years plus a specified number of additional months. This means the exact date you can claim will depend on your precise birth date within that period.
Government Launches Sustainability Review
Labour Chancellor Rachel Reeves has recently stated that a fresh review of the State Pension age is necessary. The aim is to ensure the system remains "sustainable and affordable" for the long term as life expectancy changes.
Ms Reeves confirmed the government has commissioned a review of pensions adequacy, which will look at whether people are saving enough for retirement and will also examine the State Pension age. "As life expectancy increases it is right to look at the state pension age to ensure that the state pension is sustainable and affordable for generations to come," she said.
The Chancellor added that a "very experienced set of experts" has been tasked with examining all the evidence.
What the Third State Pension Age Review Will Involve
This will be the third formal review of the State Pension age. Its primary focus will be to consider if the current rules around pensionable age remain appropriate. The findings will be based on two key reports:
- An independent report led by Dr Suzy Morrissey.
- A report from the Government Actuary, which will examine the latest life expectancy projections and data.
Pensions Minister Torsten Bell MP outlined the role of the revived Pensions Commission. He said it will conduct a holistic review of the UK's pensions system and the retirement outcomes it delivers. The commission has a clear objective: building a strong, fair and sustainable pension system fit for the middle of the twenty first century.
This latest development signals that further changes to the State Pension age beyond 67 are under active consideration, with the government seeking to balance fiscal responsibility with the security of retirees.
