The increase is expected to be fully implemented for all men and women across the UK by 2028
19:55, 28 Aug 2025Updated 07:05, 29 Aug 2025
People born in certain years will see the age they get their state pension change(Image: Getty Images)
The State Pension age is set to start its increase from 66 to 67 next year, with the rise expected to be fully in place for all men and women across the UK by 2028. This planned adjustment to the official retirement age has been on the books since 2014, with a further increase from 67 to 68 slated to occur between 2044 and 2046.
The Pensions Act 2014 brought forward the increase in the State Pension age from 66 to 67 by eight years. The UK Government also tweaked the phasing of the State Pension age increase, meaning that instead of reaching State Pension age on a specific date, individuals born between 6 March 1961, and 5 April 1977, will be eligible to claim the State Pension once they turn 67.
Experts say that people need to make plans for the changes so they won’t be surprised financially. All those affected by changes to their State Pension age will receive a letter from the Department for Work and Pensions (DWP).
Chancellor Rachel Reeves last month said a review which could see the age b eing increased even further is needed to ensure the system is “sustainable and affordable”. The Government review is due to report in March 2029 and Ms Reeves said it was “right” to look at the age at which people can receive the state pension as life expectancy increases.
The state pension age is currently 66, rising to 67 by 2028 and the Government is legally required to periodically review the age.
The Chancellor told reporters: “We have just commissioned a review of pensions adequacy, so whether people are saving enough for retirement, and also the state pension age. As life expectancy increases it is right to look at the state pension age to ensure that the state pension is sustainable and affordable for generations to come.
“That’s why we have asked a very experienced set of experts to look at all the evidence.”
The review was announced by the Department for Work and Pensions and will involve an independent report, led by Dr Suzy Morrissey, on specified factors relevant to the Review of State Pension Age along with the Government Actuary’s Department’s examination of the latest life expectancy projections data.
Rachel Vahey, head of public policy at AJ Bell, said: “An increase to state pension age from 66 to 67 is already slated to happen between 2026 and 2028. But it’s less clear what will happen after that.
“There is also an increase to age 68 pencilled in for 2046, but a faster increase is definitely on the cards. The first two reviews of the state pension age advocated bringing this forward, but successive governments have treated the issue like a hot potato.
“This latest state pension age review, however, may eventually force the government’s hand.
“State pension benefits are one of the single biggest expenses for the Treasury and account for more than 80 per cent of the £175 billion pensioner welfare bill.
“Without policy intervention, state pension costs are set to spiral to nearly eight per cent of GDP over the next 50 years based on the current trajectory, up from 5.2 per cent today.
“The second state pension age review in 2023 recommended that the increase to 68 should be introduced between 2041 and 2043 to help reduce costs, although the government under Rishi Sunak opted not to commit to that timetable.
“However, the new Labour government may feel it needs to consider the rise to age 68 more closely, particularly if it wants to demonstrate steps toward long-term fiscal prudence.
“What will the third state pension age review look at? The new state pension age review will look at key factors such as linking state pension age to life expectancy, its fairness between generations, as well as its role in ensuring the state pension’s long-term sustainability.
“An ageing population places an increasing burden on taxpayers, with state pension costs rising and fewer working age taxpayers to cover the cost.
“Future governments will hope that an improved economy and growing tax receipts will help alleviate some of the pressure. But that can’t be guaranteed and there needs to be a credible plan for maintaining affordability.
“One option is to raise the state pension age higher and faster than currently planned. Although the elephant in the room is that state pension age is just one lever government has to help manage the cost of the state pension – the other is reforming the triple lock.
“However, if the state pension age review calls for the state pension age timetable to be accelerated, that could provide some cover for future governments to look at reforming the triple lock in order to avert ever more dramatic rises in state pension age.”
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “There will be many factors that need to be assessed during this review of the state pension age.
“One of the most important will be healthy life expectancy which according to the latest data hovers in the early 60s.
“This means the reality is that many people will face real difficulties in continuing to work until their mid-to-late 60s and could face a sizeable income gap while they wait to receive their state pension.”
The biggest rail workers’ union has warned that raising the state pension age would be met with protests and direct action.
The Rail, Maritime and Transport union said a government review had sparked fears of a big increase in the pension age.
RMT general secretary Eddie Dempsey said: “The UK state pension is already one of the worst in the entire developed world, which is a direct result of decades of governments transferring both our national and personal wealth to the super rich.
“Any decision to squeeze more out of working people by forcing us to work even longer would be a national disgrace.”
He continued: “Our members work in physically demanding, round-the-clock, safety-critical jobs.
“Many already struggle to reach retirement in good health, especially shift workers.
“Raising the pension age even further isn’t just cruel and unnecessary, it’s a slap in the face to the very people who keep this country running.
“If this government makes any move to drastically increase the retirement age, we intend to lead our movement onto the streets and will not hesitate to protest nationally and take co-ordinated direct action.”