Govind Tekale
The UK state pension age is up for major changes in the coming years. The retirement age will increase from the current 66 to 67 between 2026 and 2028. This change will affect millions of Britons born after April 1960, who will need to adjust their retirement plans accordingly.
Current Pension Age and Planned Increases
Currently, both men and women in the UK become eligible for their state pension at age 66. However, next year onwards, under the Pensions Act 2014, this is going to rise to 67 over a two-year period. A further increase to 68 is currently scheduled between 2044 and 2046, though experts warn this timeline might be accelerated.
Those born between March 6, 1961, and April 5, 1977, will need to work one year longer than earlier generations before becoming eligible for their state pension.
“Increases to the state pension age are coming, possibly even sooner than expected.” This statement by David Sinclair, chief executive of the International Longevity Centre, came amid rising debates on pension age rise.
Economic Reality Behind the Changes
The UK government is expected to have spent approximately £125 billion in 2023-2024 on state pensions, which increased to £138 billion in 2024-2025. These costs are expected to rise significantly with increasing life expectancy and an aging population, placing a growing burden on taxpayers.
Recent figures from the Office for National Statistics show that life expectancy in the UK is climbing again after being negatively affected by pandemic. Men now have a life expectancy of 78.8 years at birth and can expect to live another 18.6 years once they reach 65. For women, these figures are 82.8 years at birth and an additional 21.1 years at age 65.
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Regional Disparities
However, raising the pension age is a matter of fairness due to significant regional disparities in life expectancy. For example, men born in Blackpool, Lancashire can expect to live to 73.1 years on average, while those in Hart, Hampshire have a much higher life expectancy of 83.4 years, which is a stark 10-year gap.
Upcoming Deadline for National Insurance Contributions
With these changes on the horizon, HMRC has reminded Britons that they have until April 5, 2025 to fill any gaps in their National Insurance records going back to 2006. After this deadline, the normal six-tax year limit will apply.
Men born after April 6, 1951, and women born after April 6, 1953, are eligible to make voluntary contributions to boost their New State Pension. The government’s new digital service has already processed more than 10,000 payments worth £12.5 million from people looking to maximize their retirement income.
Alice Haine, personal finance analyst at Bestinvest, advises: “Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing years. This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits.”
People typically need at least 10 qualifying years of National Insurance contributions to receive any state pension and 35 years for the full amount.
Checking Your Pension Age
The government offers an online tool at GOV.UK for anyone to check their state pension age. This tool can also confirm your Pension Credit qualifying age and eligibility for free bus travel (which remains at age 60 in Scotland).
Everyone affected by the upcoming changes should receive advance notification from the Department for Work and Pensions.
The Pensions Act 2014 requires regular reviews of the state pension age at least once every five years. These reviews consider factors such as life expectancy trends to ensure that the system remains sustainable.
A review of the planned rise to 68 is expected before the end of this decade. This gives the government an opportunity to reevaluate the timeline for implementation.
