UK State Pension Age Set for Increase Again in 2026
By Jade Wright, Personal Finance Writer
The UK State Pension age will undergo another increase in 2026, moving from 66 to 67. This change is part of a broader initiative that affects individuals born between April 6, 1960, and April 5, 1977. The adjustments come after a series of legislative changes that began in 2018, aimed at gradually raising the retirement age for both men and women.
Background on Recent Changes
Historically, the State Pension age for women was set at 60 and for men at 65. However, significant modifications to these retirement ages have taken place over the years. The Pensions Act of 2014 accelerated the transition to a State Pension age of 67, originally set to take effect in 2028, by moving the target date up by eight years. As a result, many millions of individuals have been affected by these adjustments.
The upcoming change means that, starting May 6, 2026, the State Pension age will begin to rise again, ultimately reaching 67 by March 6, 2028. This ongoing shift has caused concern, particularly among the group known as WASPI—Women Against State Pension Inequality—who have campaigned vigorously for a fairer treatment concerning the raising of the pension age, especially for women born in the 1950s.
Checking Your State Pension Age
The Department for Work and Pensions (DWP) offers a service that allows individuals to check their specific State Pension age. However, users are advised that the information can be subject to change due to ongoing reviews.
Understanding State Pension Payments
Currently, the full State Pension stands at £221.20 per week, translating to about £11,502 annually. This amount is set to rise to approximately £230.30 weekly, or £11,975 annually, starting in April 2025. The actual pension amount an individual receives can vary based on their National Insurance contributions throughout their working life.
The DWP State Pension website provides resources for individuals to check their National Insurance record and forecast their potential pension amount. This feature allows users to understand how many complete years of National Insurance contributions they need and when they may qualify for additional benefits, such as free bus travel and Pension Credit.
Working While Claiming State Pension
Individuals who choose to continue working after reaching their State Pension age can claim their pension while still being employed. Citizens Advice states that earnings from employment will not influence the State Pension received. However, additional income may affect eligibility for other benefits like Pension Credit, Housing Benefit, and Council Tax Reduction.
Accessing Pension Credit
Pension Credit is available for those reaching State Pension age, aimed at increasing weekly income. Single individuals can receive a top-up to £218.15, while couples may receive a joint income of up to £332.95. Eligibility for Pension Credit may still be possible even if income exceeds these thresholds, depending on factors such as disabilities, caregiving responsibilities, and certain housing costs.
Individuals interested in applying for Pension Credit can do so through the government website, where they can assess their qualifications based on income sources—including State Pension, other pensions, and various benefits.
With the scheduled increase in the State Pension age fast approaching, individuals born within the specified dates are encouraged to stay informed about how these changes may affect their retirement planning and financial situation.
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