The UK’s retirement landscape is shifting, and the traditional idea of stopping work at age 67 may no longer apply for future generations. Driven by demographic pressures and rising life expectancy, the UK government is accelerating its plans to increase the state pension age. This change will impact how long people stay in the workforce—and how they prepare for retirement.
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The New State Pension Age: What’s Changing?
As of June 2025, the state pension age in the UK is 66 for both men and women. It’s already set to rise to 67 by 2028, and 68 by 2046. However, recent government reviews suggest the increase to 68 could happen sooner, possibly as early as the mid-2030s.
Updated State Pension Age Timeline
| Birth Year | State Pension Age | Estimated Eligibility |
|---|---|---|
| Before 1960 | 66 | Already eligible or close |
| 1960–1965 | 67 | Between 2027–2034 |
| After 1966 | 68 (or later) | 2034 onward (subject to review) |
The 2023 State Pension Age Review recommended reassessing the timing of the age-68 rollout, citing fiscal pressure and life expectancy trends.
Why Is the State Pension Age Increasing?
Several major factors are behind this policy shift:
- Longer Life Expectancy: People are living into their 80s and 90s, meaning pensions must stretch over more years.
- Rising Public Costs: The state pension is a major part of government spending. Delaying eligibility reduces strain on the budget.
- Fewer Workers per Retiree: The working-age population is shrinking relative to retirees, weakening the National Insurance funding base.
- Sustainability Goals: The government wants to maintain a consistent ratio of working years to retirement years over time.
Who Will Be Most Affected?
Those born after April 1970 will likely see their state pension eligibility shift to age 68 or later, depending on future legislation.
This change will have the greatest impact on:
- Younger workers (born in the 1980s and 1990s)
- Low-income workers with less access to private pensions
- Manual laborers and those in physically demanding jobs, who may struggle to extend their careers
What Can You Do to Prepare?
With the state pension age rising, it’s essential to build a flexible and resilient retirement strategy. Consider the following:
1. Start Saving Early
- Contribute to workplace pensions and Personal Pensions (SIPPs)
- Max out your ISA allowances for tax-free savings
2. Track Your State Pension
- Use the UK Government Pension Forecast Tool to check your estimated benefits and National Insurance record
3. Plan for Phased Retirement
- Consider reducing working hours gradually in your 60s
- This can ease the transition into retirement while preserving income
4. Get Financial Advice
- A regulated financial adviser can help build a tax-efficient withdrawal plan and investment strategy tailored to later retirement ages
How It Impacts Retirement Planning
Rising pension ages influence more than just your expected retirement date. They affect long-term plans in areas like:
- Mortgage repayment timelines
- Private pension contribution goals
- Healthcare and long-term insurance planning
- Job transitions, reskilling, and age-friendly workplace policies
Employers may also need to adapt to an older workforce with more flexible schedules, wellness programs, and ongoing training.
Fact-Check
Current State Pension Age is 66 and rising to 67 by 2028
True
- The UK government has legislated that the state pension age will increase from 66 to 67 between 2026 and 2028.
- This is based on the Pensions Act 2014.
Source:
UK Government – State Pension age timetable
