The United Kingdom has finally raised its state pension age from 66 to 67.
The decision will take two years to implement completely. The move aims at reflecting longer life expectancy and is expected to save the treasury around £10bn a year by 2030.
Key dates: When does it happen?
The increase starts from April 6, 2026. The initial cohort is those who were born between April 6 and May 5, 1960. They have to wait an extra month before receiving their first pension.
Over the next two years, the qualifying age will rise in stages, ultimately reaching 67 for all by early 2028.
It is expected that the age will increase to 68 in the future.
How much will you get?
Due to an increase in retirement age, weekly payments will increase by 4.8% due to the triple lock policy of the UK. This causes an increase in average wage growth.
- New flat-rate state pension (post April 2016): £241.30 per week (£12,547.60 a year) – a rise of £574.60.
- Old basic state pension (pre-April 2016): £184.90 per week (£9,614.80 a year) – a rise of £439.40.
A UK citizen needs 35 years of National Insurance contributions to receive the full amount.
Who is affected?
Some 450,000 individuals born between April 1 and May 1, 1960, whose retirement age is being delayed by one month after turning 66 years old, fall under the direct category.
Persons born between May 5, 1960, and early 1962, for whom the pension age is slowly being increased to 67 in the next two years from 66, are part of the indirect group.
According to experts, the hardest hit people are those who have shorter life expectancies, such as people with poorer health or who are in deprived areas. For instance, in Blackpool, the healthy life expectancy for men is just 52 years. It means they may not live long enough to enjoy a full retirement.
