how does increase in state pension age affect me

So how does the rise in UK state pension age affect me ?

The rise in the UK state pension age, increasing to 67 between 2026-2028 and potentially 68 later, means you will may likely have to work longer. Plus you may have to bridge a funding gap with private savings or other pension arrangements.

It reduces your lifetime state pension income, increases the risk of poverty for those unable to work, and may result in you working longer through forced continued employment.

So what consequences may this event cause !

Delayed Income: You will receive your state pension later, meaning you must wait longer to receive the full new state pension of £241.30 per week. (as of 6th April 2026)

The need for other pension savings: To allow you to retire at the same age, you will need to rely more heavily on private or workplace pensions to cover the gap years.

The requirement to work longer: Most people affected by the rise tend to work longer rather than retiring earlier with less income.

Undue Financial Strain: A possible delay in payments can lead to higher poverty rates for those who are unable to work, particularly in areas of higher deprivation or poor financial backgrounds.

Impacted Age Groups: Anyone born after April 1953 has already been affected by the rise to 66. Future rises to 67 and 68 will therefore have an impact on middle aged and the younger generations, with expected plans to bring 68 forward based on life expectancy reviews.

So what future increases are expected to be implemented !

The dates highlighted below, were introduced by the Pensions Bill 2014.

6 April 1960 – 5 May 1960	66 years and 1 month
6 May 1960 – 5 June 1960	66 years and 2 months
6 June 1960 – 5 July 1960	66 years and 3 months
6 July 1960 – 5 August 1960	66 years and 4 months
6 August 1960 – 5 September 1960	66 years and 5 months
6 September 1960 – 5 October 1960	66 years and 6 months
6 October 1960 – 5 November 1960	66 years and 7 months
6 November 1960 – 5 December 1960	66 years and 8 months
6 December 1960 – 5 January 1961	66 years and 9 months
6 January 1961 – 5 February 1961	66 years and 10 months
6 February 1961 – 5 March 1961	66 years and 11 months
6 March 1961 – 5 April 1977	67 years

Some simple examples:

1. A person born on 30th July 1960 is considered to reach the age of 66 years and 4 months on 30th November 2026.
2. A person born on 30th December 1960 is considered to reach the age of 66 years and 9 months on 30th September 2027.

So what state pension do you get !

Your State Pension amount depends on your National Insurance record. You can check your State Pension forecast to find out how much you could get when you reach State Pension age. It also shows your National Insurance record. By logging into your government gateway account, or clicking attached link: http://www.gov.uk/check-state-pension

The full rate of new State Pension is £241.30 per week, or £ 12,547.60 annually and this usually based on NI contributions of 35 years. With effect from 6th April 2026.

Your amount could be different depending on:

• if you were contracted out before 2016
• the number of National Insurance qualifying years you have attained
• if you paid into the Additional State Pension before 2016.
  
• If you do have a shortfall you can make additional contributions, which costs around £ 907 for a full year and you can backdate for the past 4 years. For previous years (it cost £ 826)

One years’ top-up can increase your weekly income by £ 6.58 per week – so £ 342 per year.

If you are self-employed), Class 2 contributions are much cheaper, around £3.45 a week (£179.40 per year).

What’s about Annual increases to my state pension !

The new State Pension increases each year by whichever is the highest: (the triple lock)

• earnings – the average percentage growth in wages (in Great Britain)
• prices – the percentage growth in prices in the UK measure by the Consumer Prices Index (CPI)
• or 2.5%
  
• If you happen to have a protected amount, it increases each year with CPI.
  

So how does somebody claim their state pension !

Most people are somewhat surprised in that it doesn’t come into payment automatically at your state pension age . You will have to claim it from the DWP.

• You’ll need the date of your most recent marriage, civil partnership or divorce.
• dates of any time spent living or working abroad
• your bank or building details to make payment
• any social security numbers that you have for foreign state pension schemes
• If you are applying online, you’ll also need the invitation code for from sent to your from the DWP.
• If you have not received an invitation letter but you are within 3 months of reaching your state pension age, you can request an invitation code from the DWP.

Other ways to apply or claim:

• You can call the Pension Service team on 0800 731 0175 within 4 months of your state pension age
• Or you can claim by post by obtaining form and posting it to “FREEPOST DWP Pensions Service 3”

How often does it become paid !

You’ll be asked when you want to start getting your State Pension when you claim. Your first payment will be no later than 5 weeks after the date you choose.

You’ll get a full payment every 4 weeks after that. You might get part of a payment before your first full payment. The letter confirming your State Pension payment will tell you what to expect.

On what day is your payment made to you !

The day your pension is paid depends on your National Insurance number. You might be paid earlier if your normal payment day is a bank holiday.

It is based on the last 2 digits of your National Insurance number:

NI number (last 2 digits): Payment day of the week:

00 to 19 Monday
20 to 39 Tuesday
40 to 59 Wednesday
60 to 79 Thursday
80 to 99 Friday

Remember: If you found this blog post useful and informative, please check my other posts on investing, pensions, investment books that I recommend on http://www.moneyminted.co.uk.