State pension age starts rising to 67 – here’s how much you get and when
State Pension Age Begins Rising to 67 – Here’s How Much You Get and When
The state pension age is incrementally increasing to 67 starting this week, with monthly payments also rising simultaneously. Currently, the standard retirement age is 66, but this will gradually shift over the next two years until it reaches 67. Those born between 6 April and 5 May 1960 will see a one-month delay in receiving their pension. This adjustment aims to align with extended lifespans, as many younger workers anticipate working into their 70s. The government remains open to further changes, with ongoing assessments.
Pension Increases and Financial Impact
The new state pension amount will rise by 4.8% in the coming days, matching average wage growth due to the triple lock policy. This mechanism ensures payments increase with either wages, prices, or a minimum rate. However, gaps in national insurance records—such as periods spent abroad or caregiving—may affect eligibility for full benefits. Charities highlight that lower-income individuals and those in areas with shorter healthy life expectancy will face greater challenges.
“It is annoying,” said Peter Bradbury, a Preston resident, reflecting on his earlier belief that he would retire at 65. “I’ll do some other work and I can’t travel as much as I wanted to. In terms of day-to-day expenditure it doesn’t affect it that much, but all those little extras you would expect have gone.”
“By the time I get to [pension] age I will probably be around 70, I reckon,” Laura Williams, a 38-year-old school worker from Netherley, told the BBC. “The things you might put off doing until you have got the freedom, and maybe the finances, to do it, your body might not be able to do by then.”
Financial Savings and Employment Trends
The shift to 67 is projected to save the Treasury approximately £10 billion annually by 2030. People must contribute for 35 years to qualify for a full pension, though some may face delays due to gaps in their records. The rise also correlates with a 10-percentage-point increase in employment rates among affected age groups, as more workers stay in their jobs longer.
Future Plans and Controversies
The state pension age will eventually reach 68 between 2044 and 2046, though a review may adjust these timelines. Elaine Smith, from the Centre for Ageing Better, explained that the rationale for raising the age is tied to increased life expectancy. However, she noted that national life expectancy has dipped since the pandemic. A DWP spokesperson emphasized financial support remains available for those needing it, including universal credit and disability-related benefits.
Previous pension age changes sparked public backlash, notably the Waspi campaign, which focused on women who felt insufficient notice was given. The Institute for Fiscal Studies reported that some individuals relied on private savings to offset the impact, while others experienced reduced life satisfaction. Despite these concerns, the policy continues to evolve with the goal of adapting to demographic shifts.
