The State Pension age will rise from 66 to 67 starting in 2026, affecting individuals born between March 6, 1961, and April 5, 1977, as part of changes set out in the Pensions Act 2014. The full implementation is expected by 2028 for both men and women. Those impacted will receive a notification letter from the Department for Work and Pensions (DWP).
Phased Implementation and Eligibility
The Pensions Act 2014 adjusted the phasing of the State Pension age increase. As a result, people born between March 6, 1961, and April 5, 1977, will be eligible to claim the State Pension once they turn 67. The change has been anticipated for over a decade, and a further rise from 67 to 68 is planned between 2044 and 2046, though this timeline may be accelerated.
Government Review on Future Increases
Chancellor Rachel Reeves announced a review to assess whether the State Pension age should be increased further to ensure the system remains “sustainable and affordable.” The review is due to report by March 2029. Reeves stated, “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. That’s why we have asked a very experienced set of experts to look at all the evidence.” The review will include an independent report led by Dr Suzy Morrissey, examining factors relevant to the State Pension age, alongside the Government Actuary’s Department’s analysis of the latest life expectancy projections.
Expert Commentary on Fiscal Pressures
Rachel Vahey, head of public policy at 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.” She noted that State Pension benefits account for more than 80% of the £175 billion pensioner welfare bill, and without policy intervention, costs could rise to nearly 8% of GDP over the next 50 years, up from 5.2% today. The second State Pension age review in 2023 recommended accelerating the rise to 68 between 2041 and 2043, but the previous government under Rishi Sunak did not commit to that timetable. Vahey added: “However, the new Labour government may feel it needs to consider the rise to age 68 more closely, particularly if it wants to demonstrate steps toward long-term fiscal prudence.”
