State pension age starts rising to 67 – here’s how much you get and when
State Pension Age Increases to 67 Starting Monday
The state pension age is gradually moving up to 67, beginning on Monday. This change comes alongside a rise in monthly payments. Currently, the pension age is 66, but it will incrementally increase over the next two years, reaching 67 by 2025. Those born between 6 April and 5 May 1960 will be the first to face the adjustment, requiring an additional month to qualify for their pension.
Reasons Behind the Change
The shift reflects evolving life expectancy trends. With many individuals planning to work past their 70s, the government aims to align pension eligibility with longer lifespans. However, a review is underway to determine if further adjustments are necessary.
“It’s frustrating,” said Peter Bradbury of Preston. “I assumed I’d get my pension at 65. Now, I’ll have to keep working and limit my travel plans. While daily costs stay the same, the small pleasures I hoped for are gone.”
At a local music event in Liverpool, some younger attendees expressed concerns about future pension age changes. Laura Williams, 38, from Netherley, shared her worries: “I expect to be 70 when I retire. The things I delayed until freedom and finances arrive may no longer be possible due to physical limitations.”
Financial Implications
The pension age adjustment is projected to save the Treasury approximately £10 billion annually by 2030. To receive a full pension, individuals typically need 35 years of qualifying national insurance contributions. This year’s payment increase of 4.8% aligns with average wage growth, as mandated by the triple lock policy.
Some people may experience gaps in their national insurance records, such as those who lived abroad or took time off for childcare. Charities highlight that the policy will disproportionately affect regions with shorter life expectancy, particularly individuals with lower incomes.
Regional Life Expectancy Data
Statistics reveal regional disparities in healthy aging. In Wokingham, Berkshire, men can expect good health until nearly 70, while women may live into their early 70s. In contrast, men in Blackpool have a life expectancy of around 52, and women in Barnsley about 53. Laurence O’Brien, a senior research economist at the Institute for Fiscal Studies, noted: “Those most impacted are often the least equipped to adapt, such as the unemployed or people with health challenges.”
Future Plans and Criticisms
The state pension age will reach 68 in 2044–46, though this timeline may shift after further review. Elaine Smith, from the Centre for Ageing Better, explained that the rationale for raising the age is tied to increased longevity. “Yet life expectancy has decreased since the pandemic,” she added.
Previous changes have sparked controversy, notably the Waspi campaign, where women criticized the lack of notice. The policy has also led to higher employment rates among affected groups, with some staying in work for 10 percentage points longer. Meanwhile, financial support remains available for those who haven’t reached pension age, including universal credit and disability-related benefits.
For more insights, listen to the Money Box program at 12:00 BST on Radio 4 or later on BBC Sounds.