Countdown Begins for State Pension Age Hike Impacting Those Born After 1960

The UK is set to raise the State Pension age from 66 to 67 starting next year, with full implementation expected by 2028 for both men and women.
This change, mandated by the Pensions Act 2014, accelerates the previously planned increase by eight years and affects individuals born between March 6, 1961, and April 5, 1977, who will now claim their State Pension at 67 rather than 66.
Looking further ahead, the State Pension age is scheduled to rise again to 68 between 2044 and 2046, reflecting ongoing adjustments to ensure the pension system remains sustainable amid demographic shifts.
The government’s approach to these changes is grounded in the principle that people should spend a balanced portion of their adult lives in retirement.
Regular reviews of the State Pension age, required at least every five years by law, consider factors such as life expectancy and economic conditions.
The next comprehensive review, initially planned for 2026, will reassess the move to age 68, taking into account recent challenges like the COVID-19 pandemic and inflationary pressures, which have introduced uncertainty into life expectancy and labour market trends.
Any future adjustments will require parliamentary approval before becoming law.
For those approaching retirement, understanding these changes is critical.
The Department for Work and Pensions (DWP) will notify affected individuals well in advance, allowing time to adjust retirement plans accordingly.
Meanwhile, the earliest age to access workplace or personal pensions remains separate from the State Pension age and is set to increase from 55 to 57 in 2028, aligning with the broader trend of extending working lives.
In addition to age changes, there is a pressing need for many to review their National Insurance (NI) records to maximize their State Pension entitlements.
Since last year, HM Revenue and Customs (HMRC) has facilitated over 10,000 payments totaling £12.5 million through a new digital service that allows individuals to fill gaps in their NI contributions dating back to 2006.
The window for making voluntary contributions has been extended to April 5, 2025, giving eligible men born from April 6, 1951, and women from April 6, 1953, more time to boost their pension amounts.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, emphasized the importance of NI contributions: “People typically need at least 10 qualifying years of NI contributions to receive any state pension at all and at least 35 years to receive the full new State Pension – though they don’t need to be consecutive years.” She cautioned that plugging gaps can be costly and advised individuals to carefully assess their circumstances, including eligibility for NI credits that cover periods of sickness, unemployment, or caregiving.
Haine highlighted the convenience of the government’s digital tools, noting that millions have already used the State Pension forecast service to identify and address contribution gaps.
She urged those considering top-ups to act promptly, as the deadline is unlikely to be extended again.
Despite these reforms, the State Pension alone is unlikely to provide a comfortable retirement income.
The full new State Pension currently stands at £11,973 annually, which falls short of the £14,400 estimated by the Retirement Living Standards as necessary for a minimum retirement lifestyle for a single person.
This gap underscores the importance of supplementing the State Pension with workplace or personal pensions and other savings to ensure financial security in later life.
The UK government’s ongoing adjustments to the State Pension age and related policies reflect broader demographic trends, including increasing life expectancy and an aging population.
These measures aim to balance fiscal sustainability with fairness across generations, ensuring that the pension system can continue to provide dignity and security for retirees in the decades ahead.