State pension age starts rising to 67 – here’s how much you get and when
State Pension Age Rises to 67 – Details on Payments and Timeline
The state pension eligibility age is gradually increasing to 67, starting from Monday. Alongside this change, monthly pension payments will also rise. Currently, the pension age is 66, but it will be raised in phased steps over the next two years. The first group affected will be those born between 6 April and 5 May 1960, who will now wait an additional month before receiving their pension.
Impact on Individuals
Peter Bradbury, a resident of Preston, will qualify for his state pension at 66 years and eight months. He expressed frustration, noting his earlier belief that he would receive it at 65. “It is annoying,” he said in an interview with BBC Radio 4’s Money Box. “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.”
Future Expectations and Concerns
“By the time I get to pension age I will probably be around 70, I reckon,” said Laura Williams, 38, from Netherley. She works in a school and worries about her quality of life in old 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,” she added.
The transition to 67 is projected to save the Treasury £10bn annually by 2030. To receive the full pension, individuals typically need 35 years of qualifying national insurance contributions. Payments will increase by 4.8% in line with average wages, thanks to the triple lock policy, which ensures pensions rise with wages, inflation, or a set rate.
Disparities and Vulnerabilities
Charities highlight that the pension age rise will disproportionately affect groups with shorter life expectancies. For instance, men in Wokingham, Berkshire, are expected to remain in good health until nearly 70, while those in Blackpool see a forecast of nearly 52 for men and nearly 53 for women in Barnsley. “The people most affected are often those least able to adjust through staying in work or drawing on other savings,” explained Laurence O’Brien, a senior research economist at the Institute for Fiscal Studies.
Employment and Financial Effects
The policy has already led to a 10 percentage point rise in employment rates among affected age groups. However, it has also sparked concerns about financial strain. Some individuals have relied on private savings to offset the delay, and studies show this shift has lowered life satisfaction for those impacted.
Future Plans and Rationale
The state pension age is set to reach 68 by 2044–46, though a review may alter these dates. Elaine Smith, head of employment and skills at the Centre for Ageing Better, stated that the rationale for raising the age is tied to increased longevity. “But life expectancy nationally is lower now than it was before the pandemic,” she noted. The Department for Work and Pensions emphasized its commitment to supporting individuals financially, including universal credit and other targeted benefits for those who haven’t yet reached pension age.
Listen to more discussions on Money Box at 12:00 BST on Radio 4 or later on BBC Sounds.
