The State Pension age in the UK is now rising from 66 to 67, with the phased increase due to be completed for all men and women across Great Britain by 2028, as experts warn a further rise to 68 faces significant challenges.
The State Pension age has begun its gradual rise from 66 to 67, with the transition scheduled to be finalised for all men and women throughout Great Britain by 2028. The planned adjustment to the official retirement age has been enshrined in law since 2014, with a subsequent increase from 67 to 68 set to take effect between 2044 and 2046.
The third State Pension age review was initiated in July last year. It will examine future increases, considering factors including life expectancy, employment patterns, expenditure, and long-term viability.
Under the Triple Lock mechanism, State Pensions rise annually in accordance with whichever is highest among average annual earnings growth from May to July, the Consumer Price Index (CPI) inflation rate in the year to September, or 2.5 per cent.
It’s crucial to note that any modifications to the State Pension age must adhere to the principle of providing people with 10 years’ notice of any alteration to their retirement age – or risk repeating a situation which has impacted an estimated 3.6 million women born in the 1950s.
Phoenix Insights has cautioned that approximately 3 million people could face postponed retirement plans if the State Pension age rise to 68 is accelerated, reports the Daily Record.
The most recent DWP statistics reveal there are currently 13.2 million people of State Pension age, including over 1.1 million in Scotland. Some 34 per cent receive the New State Pension (post-April 2016) while 66 per cent are claiming the Basic (or Old) State Pension (pre-April 2016).
Those receiving the full New State Pension are currently entitled to £241.30 per week, and as payments are typically issued every four weeks, this equates to £965.20 per payment. Over the 2026/27 financial year, recipients will receive an annual sum of £12,547.
It is worth noting, however, that not all of the 4.1 million people on the New State Pension receive the full amount, as entitlement is tied to National Insurance Contributions.
Recipients must have made at least 10 years’ worth of National Insurance Contributions (NICs) to qualify for any State Pension, with approximately 35 years required for the full rate — though this figure may be higher for those who have been ‘contracted out’.
Those on the full Basic State Pension currently receive weekly payments of £184.90, or £739.60 per four-week payment period. Over the 2026/27 financial year, annual payments will amount to £9,614.
Patrick Thomson, Head of Research Analysis and Policy at Phoenix Insights, said: “The State Pension remains at a critical juncture with questions remaining over its long-term affordability and the future of the Triple Lock. Projections suggests there will be five million more State Pensioners in the UK by 2070 compared to just one million more people of working-age.”
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