The new year will be remembered as a year marked by change, some for the better and others for the worse. One of the things that will undergo several changes in the new year is the State Pension. The State Pension Age changes in 2026, and as a result, millions will face retirement later than expected. These changes will cause a ripple effect as pensioners attempt to adapt and overcome the upcoming reforms. Discover how the new State Pension Age could potentially impact you going forward.
Millions will face retirement later than expected
For some, the upcoming changes in 2026 may happen too suddenly. However, they have been coming for quite some time. The Pension Act 2014 had these changes in motion more than a decade ago, and both men and women will be equally affected. Embracing these changes with open arms won’t come naturally to everyone, but the government insists that they are as necessary as they are inevitable.
According to the UK Government, the following reasons are the key drivers behind the reforms:
- Higher life expectancies could impact the system’s long-term viability if more people claim a pension for longer
- Financial stability for future generations is more certain when the age increases, as it assists in lowering government borrowing
- Regular legislated reviews to ensure the system operates smoothly and fairly
You can ensure that you have all of your financial ducks in line before the reforms in 2026 by understanding which factor will play the key role in determining when you can retire and start claiming your State Pension benefits.
State Pension Age changes in 2026
As the 66 retirement era comes to an end, millions of prospective pensioners will have to either adapt or delay retirement plans. From April 2026, the State Pension Age will increase to 67, resulting in delayed retirement for millions of people. According to the UK Government, the transition to the new State Pension Age of 67 will be complete by April 2028.
This transition will reportedly not be the last, as some workers can expect a further delayed retirement when the State Pension Age rises again to 68 between 2044 and 2046. According to the Government’s Actuary Department (GAD) and the State Pension Age review, additional analysis of the impact of several factors on pensionable age regulations may be underway.
Understanding the upcoming changes
Change can be a daunting thing, but by understanding more about the upcoming changes, people can plan their finances accordingly. The key thing to know is that your exact date of birth will play a vital role in when you can start claiming your State Pension benefits. In a nutshell, people born:
- On or before 5 April 1960 may still claim the State Pension at age 66
However, anyone born on or after 6 April 1960 will have a State Pension Age of 66 years and one month. For every month after that, the State Pension Age will rise by one month. Once the date of birth reaches 6 March 1961 and thereafter, the new State Pension Age will be 67. By 6 March 2028, the final group will have finally reached the age of 67, which will be anyone born on 6 March 1961.
As the population grows older due to higher life expectancies, more people will continue to miss out on their State Pension benefits. One of the things that will be missed in particular is the Triple Lock’s surprise boost to the State Pension, which will be much higher than initially anticipated. As the saying goes, you win some, and you lose some. However, if things continue in the present state, we could be looking at millions of people being forced to continue working or return to work at an old age and/or with rapidly declining health.
Disclaimer: This content is informational only and does not supersede or replace the Department for Work and Pensions’ or HMRC’s own publications and notices. Always verify any specific dates and amounts by following the direct links in our article to the institutions or by consulting your local DWP field office or tax advisor.