The UK government has officially confirmed that the State Pension age, currently set at 66, will rise to 67 for those born between 1960 and 1965, and further increase to 68 for individuals born after 1966, with the changes coming sooner than expected. Here’s everything you need to know about this major shift.
Why the Pension Age Is Increasing
- Longer lifespan: People living longer into their 80s and 90s places pressure on pension finances.
- Fewer taxpayers: A shrinking workforce means less National Insurance income to support pension payouts.
- Budget sustainability: Rising pension costs risk overwhelming public spending unless eligibility is adjusted.
When the State Pension Age Changes
| Birth Year | Current SPA | New SPA | Effective From |
|---|---|---|---|
| Born ≤1959 | 66 | — | — |
| 1960–1965 | 66 | 67 | Phased between 2027–2034 jsvcollege.com+1clostridia.net+1 |
| Born ≥1966 | 66 | 68 | Mid‑2030s |
- Born before April 1960: SPA remains 66.
- Born 1960–1965: SPA will increase to 67, with rollout between 2027 and 2034.
- Born after 1966: SPA will be 68, likely mid-2030s, earlier than previous projections toward 2046.
Current Pension Rates & Triple Lock Impact
- New State Pension: £221.20/week (≈£11,973/year).
- Increased to £230.25/week (≈£11,973 annually) following a 4.1% rise in April 2025, due to the triple lock mechanism.
The triple lock guarantees annual pension increases based on the highest of: CPI inflation, wage growth, or 2.5%.
Challenges & Criticisms
- Financial strain: Maintaining the triple lock without raising the SPA could push pension spending over sustainable levels. IFS warns SPA might need to reach 69 by 2049, 74 by 2069.
- Stealth taxation: With personal allowances frozen and pension increases, many retirees may begin paying tax on pension income alone.
- Inequality concerns: Younger workers born after 1966 face later retirement than older cohorts—a move some see as unfair.
What This Means for You
- Check your SPA: Use the UK Government’s online pension age calculator to find your specific SPA.
- Track NI contributions: Ensure you’ve paid or credited the full 35 years needed for the new state pension. Missing years can reduce entitlement.
- Consider deferral: Delaying your pension past SPA increases payments by 5.8% per year (for those claiming after April 2016).
- Boost private savings: Explore workplace pensions, Lifetime ISAs, or voluntary NI top‑ups to secure a comfortable retirement.
The era of retiring at 67 in the UK is drawing to a close. With SPA rising to 67 by 2034 and 68 in the mid‑2030s, this significant policy shift reflects demographic changes and economic pressures.
While the increases may stretch retirement plans, they come with opportunities to strengthen pension readiness—through saving, deferring, and verifying NI records.
FAQs
When will the State Pension age rise to 67?
Those born 1960–1965 will retire at 67, phased in between 2027 and 2034.
Will I have to wait until 68?
Yes—if born after 1966, your SPA likely rises to 68, expected in the mid-2030s.
How much is the full State Pension in 2025?
It’s £230.25/week after April 2025, based on 4.1% CPI increase under the triple lock.