The UK Government makes it official: The retirement age changes in just three months. The latest announcement will leave millions of Britons disappointed, as they may have to change some, if not all, of their prospective retirement plans. However, these changes are not unexpected, as they have been on the agenda for quite some time. These changes may seem unwarranted, but they do hold merit, especially since people are living longer, healthier lives. Find out how the retirement age changes will impact you.

People are living longer, healthier lives

The present retirement age, or State Pension age, is 66. However, the UK Government is legally obligated to review this age periodically. Why? Because people are living longer, healthier lives, that’s why.

“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 the evidence.” – Chancellor Rachel Reeves

Now, the UK Government has made the retirement age changes official, and they will take effect sooner than you may think. The upcoming changes will be available in a review announced by the Department for Work and Pensions (DWP). Find out which group will be impacted by these changes.

The UK Government makes it official

By 2028, the old retirement age will be a thing of the past, and the new age will be fully implemented for all Britons. Which means if your retirement plan has been arranged, you must ensure that your finances are in order, as you will have to wait longer before you can claim the State Pension. It is a shame as well, seeing as the ‘Triple Lock’ guarantee will result in a significant boost for pensioners starting in 2026.

The State Pension age, as well as its phasing, has been changed by the Pensions Act 2014. This is why the following people will have to wait until age 67 before they can claim the State Pension:

Anyone born between 6 March 1961 and 5 April 1977

There are talks of another increase down the road.  According to a report by Bristol Live, between 2044 and 2046, the age will further increase from 67 to 68. In the 2023 review, the second increase was initially advised to be implemented between 2041 and 2043 to decrease costs. Thankfully, the government under Rishi Sunak did not commit to the period.

Retirement age changes in just three months

According to a report by the Express, anyone affected by the retirement age changes will be notified by a notice letter from the DWP. As the 66 retirement era concludes, the new State Pension age of 67 will become official in 2026. This means that we will have to say goodbye to the current State Pension age in less than three months.

According to Chancellor Rachel Reeves, these changes to the retirement age are necessary, as she believes they keep the State Pension system “sustainable and affordable.” Chancellor Reeves said the following to reporters during an interview:

“We have just commissioned a review of pensions adequacy, so whether people are enough for retirement, and also the state pension age.”

The DWP’s review will also include a separate report led by Dr Suzy Morrissey. This report will highlight the relevant factors that impact the State Pension Age, as well as the Government Actuary’s Department’s research on the latest life expectancy projections data. The best thing you can do for yourself is to stay up to date on the latest information about the retirement age. For more information about the retirement age changes and the DWP’s review, please review the official statement from the UK Government.

Disclaimer: This content is informational only and does not supersede or replace the Department for Work and Pensions’ or HMRC’s own publications and notices. Always verify any specific dates and amounts by following the direct links in our article to the institutions or by consulting your local DWP field office or tax advisor.