The UK government has confirmed a significant change to the State Pension age, which will rise from 66 to 67 starting next year. This adjustment is part of a broader policy aimed at gradually increasing the State Pension age to 67 for both men and women across the UK by 2028.
The Department for Work and Pensions (DWP) has revealed limited details on how this change will be implemented, and the full impact on pensioners remains to be seen. According to the Manchester Evening News, individuals born between April 1960 and March 1961 are encouraged to check their eligibility through an online tool provided by the DWP.
State Pension Age Change Timeline
The Department for Work and Pensions (DWP) has called on individuals born between 6 April 1960 and 5 March 1961 to verify their eligibility using the online tool on GOV.UK.
As per the changes, people born on 6 April 1960 will reach the State Pension age of 66 on 6 May 2026, while those born on 5 March 1961 will reach the State Pension age of 67 on 5 February 2028.
The DWP took to X (formerly known as Twitter), stating:
Born between 6 April 1960 and 5 March 1961? Check today to find out what your State Pension age will be.
It’s essential for those impacted to stay informed and plan accordingly for retirement. Affected individuals will receive a letter from the DWP to notify them of these adjustments.
State Pension Age Review and Further Increases
The increase in the State Pension age has been legally mandated since 2014, with additional increases from 67 to 68 expected between 2044 and 2046.
A review of this change is scheduled before the end of this decade, considering factors such as life expectancy. Any proposals for extending the retirement age further must be approved by Parliament before becoming law.
How to Check Your State Pension Age
Everyone can use the online tool available on GOV.UK to check their State Pension age. This tool is an essential part of retirement planning, helping individuals understand when they will be eligible to start receiving their State Pension.
State Pension Payment Details for 2025/26
The full New State Pension will provide a weekly payment of £230.25, totalling £11,973 annually, or £921 every four weeks.
For those eligible for the Full Basic State Pension, the weekly payment will be £176.45, which adds up to £9,175 annually, or £705.80 every four weeks.
The government has forecasted annual increases to State Pension payments, with the first set of increases projected at 4.1% for 2025/26. Other increases for the following years include 2.5% annually from 2026/27 to 2029/30.
The Triple Lock and Future Increases
The Labour government has pledged to maintain the Triple Lock system during its term. The forecasted increases include 4.1% for 2025/26, followed by 2.5% annually for the next five years.
However, it’s worth noting that only about half of the retirees who received the New State Pension in the past year received the full weekly amount. Around 150,000 retirees received less than £100 per week.
Tax Considerations for State Pension Recipients
While the Personal Allowance remains fixed at £12,570 for the 2025/26 financial year, those who are entirely reliant on the State Pension will not be taxed on this income. However, individuals with additional income, such as from work or investments, should be prepared to pay taxes.
If the increase in State Pension payments in 2025/26 pushes someone above the tax-free threshold, they will be liable for taxes, which will be calculated retroactively. HMRC will not issue tax bills until July 2026.
How to Ensure You Receive the Full New State Pension
To qualify for the full New State Pension, individuals must have at least 35 years of National Insurance (NI) contributions.
Those with gaps in their NI record can plug these gaps by making voluntary contributions. Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, states:
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 continued:
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, which fill the gaps, such as those who have been sick, were unemployed, or took time out to raise a family or care for elderly relations.
Since the government rolled out its new NI payment services in April last year, it’s easier for people to check their records and plug any gaps. Alice Haine mentioned:
People simply need to log into their personal tax account or the HMRC app to not only view any payment gaps but also check if they can plug those gaps directly through the UK Government’s digital channels.
She advised:
Calculating whether to top up can be confusing though, and ultimately there is no point paying for more years than you need because you won’t get that money back.
Haine also pointed out that individuals who took a career break, as well as low earners or expatriates living and working abroad, may be the ones who need to top up their contributions.
