The UK government has announced another increase in the state pension age, set to take effect in 2026. This change will impact millions of workers planning their retirement, pushing the eligibility threshold higher.
What’s Changing?
Under the new reforms, the state pension age will rise to 67 by 2028, with the first phase starting in 2026. This adjustment follows previous increases and reflects longer life expectancies and fiscal pressures on the pension system.
Who Will Be Affected?
Workers currently in their late 50s and early 60s will need to reassess their retirement plans. Those born after April 1960 will face delayed access to their state pension, requiring additional years of National Insurance contributions.
Why Is This Happening?
The government cites rising life expectancy and the need to maintain a sustainable pension system as key reasons for the change. Critics, however, argue that the move disproportionately affects lower-income workers and those in physically demanding jobs.
What Can You Do?
Plan ahead: Review your retirement savings and consider private pension options to bridge the gap.
Check your NI record: Ensure you have enough qualifying years to claim the full state pension.
Stay informed: Further reviews of the pension age are expected, so keep up with updates.
This latest shift underscores the importance of proactive financial planning for retirement. With the state pension age likely to rise again in the future, experts urge workers to start preparing early.
