State pension age rises to 67 – how the change affects entitlement and timing

What the new timetable looks like

The current state pension age stands at 66. Over the next two years the state pension age will be raised in stages until it reaches 67. The first cohort to feel the impact comprises people born between 6 April and 5 May 1960. Those individuals will have to wait an additional month before they become eligible for their state pension.

The step‑by‑step increase is designed to reflect longer life expectancy and the trend of younger workers staying in employment well into their 70s. The government continues to review whether further increases to the state pension age will be required beyond the current schedule.

Personal impact – voices from the public

Peter Bradbury, from Preston, will be entitled to his state pension when he reaches the age of 66 years and eight months. Peter Bradbury told Crickxo Radio 4's Money Box: "It is annoying," Peter Bradbury said, having previously assumed that the pension would be received at 65. "I'll do some other work and I can't travel as much as I wanted to. In terms of day‑to‑day expenditure it doesn't affect it that much, but all those little extras you would expect have gone."

At a guitar group at the Florrie in Liverpool, several younger participants expressed the view that the pension age will continue to rise in the future. Laura Williams, 38, from Netherley, who works in a school, said: "By the time I get to [pension] age I will probably be around 70, I reckon." Laura Williams added that the prospect raises concerns about quality of life at that age. "The things you might put off doing until you have got the freedom, and maybe the finances, to do it, your body might not be able to do by then," Laura Williams explained.

Financial implications of the increase

The rise from a state pension age of 66 to a state pension age of 67 is projected to save the Treasury about £10 billion a year by 2030. In general, people need 35 years of qualifying National Insurance contributions to receive a full state pension.

Within days of the change, the amount paid will rise by 4.8 % in line with average wages, in accordance with the triple‑lock policy. The specific increases are as follows:

• the new flat‑rate state pension – for those who reached state pension age after April 2016 – will increase to £241.30 a week, or £12,547.60 a year, a rise of £574.60
• the old basic state pension – for those who reached state pension age before April 2016 – will go up to £184.90 a week, or £9,614.80 a year, a rise of £439.40

Some individuals may have gaps in their National Insurance record if, for example, they have lived abroad or taken time off to care for children.

Geographic and socioeconomic considerations

Charities have warned that the increase in state pension age will have a far greater impact in areas where forecasts for a healthy older age are much shorter, and will hit those on lower incomes harder. Official statistics suggest men in Wokingham, Berkshire, can expect to be in good health until the age of nearly 70, and nearly 71 for women. That compares with nearly 52 for men in Blackpool and nearly 53 for women in Barnsley.

Laurence O'Brien, senior research economist at the Institute for Fiscal Studies, said: "The people most affected are often those least able to adjust through staying in work or drawing on other savings, for example those already out of work or in poor health." Laurence O'Brien added: "There is a good case for future increases to the state pension age to come alongside targeted financial support for most affected groups."

Previous increases in the state pension age have proved controversial, particularly those leading to the Waspi campaign among women who claim they were not given adequate notice of the changes.

Behavioural and employment outcomes

Some people affected by state pension age rises have needed to rely on private pension savings to bridge the gap, according to the Institute for Fiscal Studies, but the increases also led to lower life satisfaction among those who were impacted.

A rising state pension age also led to employment rates among affected age groups increasing by 10 percentage points, driven primarily by workers staying in their jobs for longer.

The increase in the state pension age to 68 is currently legislated for 2044–46, although a review will consider whether to change those dates.

Expert commentary on longevity and policy

Elaine Smith, head of employment and skills at the Centre for Ageing Better, explained that the rationale for repeatedly raising the state pension age was based on people living for longer. Elaine Smith noted: "But life expectancy nationally is lower now than it was before the pandemic."

A spokesman for the Department for Work and Pensions said: "We're committed to providing financial support for people at any age who need it. Those that have not reached state pension age can access a range of support such as universal credit and other means‑tested and disability‑related benefits."