Finance

State Pension Age Hike Impact | Who Will Be Most Affected?

July 8, 2025

9 minute read

Table of Contents

For many nearing retirement, the State Pension has long been a financial anchor and a symbol of security after decades of contribution. But what happens when that safety net begins shifting further out of reach?

For millions across the UK, that question is no longer hypothetical. For them, the wait to claim their pension will extend by months, and in some cases, a full year.

While the Government points to increasing life expectancy and growing fiscal demands as justification, the move brings with it concerns about readiness, fairness and long-term planning.

In this article, we will explore the full scope of the State Pension age hike and its widespread consequences.

Why Is the State Pension Age Increasing Again?

The UK Government has long acknowledged the rising financial strain associated with an ageing population. As more people live longer, they also claim State Pension for extended periods, significantly increasing public expenditure.

When the State Pension was launched in 1948, average life expectancy hovered around 66 years. Today, life expectancy in the UK exceeds 80 years, meaning that people are spending more than two decades drawing a pension.

To respond to this shift, the State Pension age has already undergone multiple changes. The age for women was gradually raised to match that of men at 65, and subsequently, both increased to 66 by 2020. Now, the Government is moving ahead with the next phase, raising the pension age to 67 by 2028.

The rationale behind this policy is built on several pillars:

Government’s Financial Motivation

The cost of pensions in the UK is already surpassing £100 billion per year.
The Triple Lock system increases pension payments annually, further compounding future obligations.
The rising number of pensioners risks outpacing the working-age population, shrinking the tax base.

Life Expectancy and Fairness

People are living healthier and longer lives, often working beyond traditional retirement age.
Policymakers argue that it’s fair for working lives to extend proportionally to life expectancy.
Critics, however, note that life expectancy is not equal across regions and demographics, and a blanket approach may disadvantage lower-income groups.

Legislative Background

The Pensions Act 2014 accelerated the plan to raise the age to 67, moving it forward by eight years. Although the law was passed a decade ago, its phased implementation starts in 2026.

The review process, conducted every five years, assesses longevity trends and economic viability. As of 2025, the Government maintains that this scheduled increase is necessary to ensure the long-term affordability of the State Pension system.

Who Will Be Affected by the 2026 to 2028 State Pension Age Change?

This State Pension age hike will directly affect individuals born between 6 March 1961 and 5 April 1977. For those within this age bracket, the eligibility age will be pushed to 67, representing a considerable shift in retirement expectations and financial planning.

Phased Transition Explained

The increase will not apply instantly. Instead, the age hike will roll out gradually over two years between April 2026 and March 2028. Individuals will find themselves eligible at varying points, depending on their birth month.

This group includes both men and women, reflecting the equalisation of pension rules over the past decade. If your birthday falls after 5 April 1961 and before 6 April 1977, you should prepare for this change in your retirement timeline.

People born after 5 April 1977 are also likely to see additional age hikes in the future. While no fixed date has been confirmed, there is growing speculation that the pension age could rise to 68 as early as the 2040s, and possibly to 69 in the decades beyond.

What Is the New State Pension Age Timetable?

Understanding the rollout timeline is critical for those affected. The Department for Work and Pensions (DWP) has published a detailed schedule outlining how the age increase will unfold month-by-month.

Phased Age Eligibility (2026–2028)

Date of Birth Range	New Pension Age
Before 6 March 1961	66
6 Mar 1961 – 5 Apr 1977	67 (phased in by months)
After 6 Apr 1977	67 or higher (projected)

More specifically, those born between April 1960 and March 1961 will hit pension age at 66 years and several months, depending on their birth month. Below is a month-wise breakdown for this group:

Birth Month Range	Reach Pension Age At
April 6 – May 5, 1960	66 years, 1 month
May 6 – June 5, 1960	66 years, 2 months
June 6 – July 5, 1960	66 years, 3 months
July 6 – August 5, 1960	66 years, 4 months
August 6 – September 5, 1960	66 years, 5 months
September 6 – October 5, 1960	66 years, 6 months
October 6 – November 5, 1960	66 years, 7 months
November 6 – December 5, 1960	66 years, 8 months
December 6 – January 5, 1961	66 years, 9 months
January 6 – February 5, 1961	66 years, 10 months
February 6 – March 5, 1961	66 years, 11 months
March 6, 1961 – April 5, 1977	67

This structured approach means some will see only a few months added, while others wait an entire year. Individuals can use the official State Pension age tool online to check their exact eligibility date.

How Does the State Pension Age Hike Impact Retirement Planning?

The impact on retirement planning is substantial, especially for those approaching pension age. A one-year delay could mean adjusting income expectations, work schedules or personal finances.

Financial Adjustments

Those affected may have to:

Delay retirement by 6 to 12 months
Continue working or find part-time income
Rely more heavily on workplace or private pensions

Emotional and Physical Considerations

Extending the working age affects not just finances, but well-being. Many people in manual or high-stress jobs may find it difficult to remain in employment past 66.

Limited Time to React

The increase begins in just over a year. That’s a narrow window for financial planning, especially for individuals who are unaware of or unprepared for the change.

Is the Triple Lock Still Protecting Retirees?

Yes, as of April 2025, the Triple Lock remains in effect. This mechanism guarantees that State Pension payments will rise annually by the highest of the following:

Consumer Price Index (CPI) inflation
Average wage growth
2.5 percent

Pension Increase Comparison (April 2024 vs April 2025)

Pension Type	2024 Annual	2025 Annual	Weekly Equivalent
New State Pension	£11,541.90	£12,016.75	~£231

This results in an approximate £475 yearly increase, helping pensioners cope with inflation and rising costs. However, for those still waiting to claim, these increases may feel out of reach, highlighting the importance of private pension savings or transitional support.

How Are Women Specifically Affected by State Pension Changes?

The age hike has different implications for different demographics. For many women, particularly those affected by earlier adjustments to the State Pension age, the upcoming rise represents a continued struggle for equality and clarity.

WASPI Campaign

WASPI (Women Against State Pension Inequality) has long argued that women born in the 1950s were unfairly impacted by inadequate communication around previous pension age changes.

Many received little or no notice that their retirement would be delayed by years, leaving them financially unprepared.

Ombudsman Findings

A 2024 report from the Parliamentary and Health Service Ombudsman highlighted significant communication failures by the Department for Work and Pensions. These failures left thousands of women in hardship, and compensation has been debated for years.

Lasting Impact

Though the current hike applies to both genders, women may still bear the brunt due to caregiving roles, lower lifetime earnings and pension gaps.

Will There Be Future Rises Beyond Age 67?

The increase to 67 is not the end of the story. The Government has made it clear that future reviews could lead to further age hikes. Under the current roadmap, the age could rise to 68 between 2044 and 2046, though this timeline is subject to change.

Potential Revisions

Some experts believe the rise to 68 could be brought forward to the late 2030s. There is also speculative discussion around a future rise to 69, depending on demographic trends and budgetary pressures.

Labour Government’s Approach

The newly elected Labour government in 2025 has committed to reviewing retirement age policy and improving fairness. However, no reversals have been proposed for the 2026 to 2028 changes.

Are People Aware of the Upcoming Pension Age Shift?

A 2025 study by the Institute for Fiscal Studies revealed that awareness around the pension age hike remains low. Many individuals in their early 60s were unaware of the exact timeline or the full impact on their retirement.

Knowledge Gap

A large portion of those affected have not updated their retirement plans
Confusion persists due to phased rollouts and shifting policies
Campaigners like Age UK have stressed the need for clearer government communication

Risk of Unpreparedness

If people are unaware or misinformed, they risk financial instability or delayed retirement planning. More robust education and official outreach are needed to mitigate this risk.

What Can You Do to Prepare for a Higher Pension Age?

Despite the challenges, individuals still have time to plan and adjust. Preparation is essential to reduce stress and safeguard financial security.

Key Steps to Take

Check your State Pension age using the official GOV.UK calculator
Review your National Insurance contributions to ensure eligibility
Consider workplace or private pensions to supplement State Pension income
Adjust expectations and timelines for retirement
Budget for cost-of-living increases to avoid gaps in income

The ripple effects of the State Pension age hike extend beyond individual finances. Society at large may face challenges related to employment, healthcare and economic inequality.

Employment and Productivity

Older workers may remain in the workforce longer, impacting job opportunities for younger generations
Businesses may need to adapt roles to suit ageing employees

Health and Wellbeing

Delaying retirement can strain physical and mental health
Long-term work in manual roles increases risk of injury and burnout

Rising Inequality

Individuals with lower life expectancy or earnings are disproportionately impacted
The uniform age hike does not account for regional or occupational disparities

Conclusion

The upcoming rise in the State Pension age is more than just a policy change. It reshapes retirement expectations, challenges existing financial plans and places new burdens on millions of UK residents.

While it reflects broader demographic and fiscal realities, it also highlights the need for tailored planning, clearer communication and social equity.

Whether you are set to be impacted in 2026 or anticipating changes in the decades ahead, the time to act is now. Understanding the changes, assessing your situation and making informed decisions can help secure a stable and dignified retirement.