DWP State Pension Age— The United Kingdom is moving forward with a major shift in its State Pension system, and millions of people born between April 6, 1960, and March 5, 1961 will be directly affected. The State Pension age is set to rise from 66 to 67, with changes starting in May 2026 and completing by early 2028.
These changes, enacted under the Pensions Act 2014, are part of a long-term plan to reflect the UK’s aging population and rising life expectancy. The UK government’s Department for Work and Pensions (DWP) is encouraging all individuals to check their exact pension age using the official tool on GOV.UK.
Who Is Affected by the Change?
Those born on or after April 6, 1960, will see their retirement age gradually shift. For example:
- A person born on April 6, 1960 will now reach State Pension age on May 6, 2026.
- Someone born on March 5, 1961 will reach it on February 5, 2028.
The phased rollout will affect millions of workers in the UK, and expats currently residing in the United States may also need to review their retirement plans if they have accrued UK State Pension eligibility.
What’s Coming Next?
Beyond this current shift, a future increase to age 68 is on the horizon. While initially planned for 2044–2046, recent reviews under both the Conservative and Labour governments have suggested the date could be moved forward to 2041–2043, depending on future economic and life expectancy trends.
A government review expected during this parliamentary term will clarify the timeline, but any major change would require 10 years’ notice to the public, according to existing policy guidelines.
Current Pension Rates and Increases
For the 2025/26 financial year:
- Full New State Pension: £230.25 per week, or £11,973 annually
- Full Basic State Pension: £176.45 per week, or £9,175 annually
The Triple Lock—which ensures State Pension payments rise by the highest of inflation, average wage growth, or 2.5%—has been reaffirmed by the current Labour government. Forecasts predict a 4.1% increase in 2025/26, followed by steady 2.5% annual rises through 2029/30.
Tax Implications for Pensioners
The UK’s personal allowance will remain frozen at £12,570, meaning pensioners who rely solely on State Pension income won’t pay income tax. However, retirees with additional income sources could face tax liabilities—especially since tax is collected a year in arrears, with bills potentially arriving in July 2026 for this coming year’s income.
How to Ensure You Receive Full Pension Benefits
To receive the full New State Pension, individuals typically need at least 35 years of qualifying National Insurance contributions (NICs). A minimum of 10 years is required to receive any pension at all.
Finance experts are urging individuals to check for gaps in their NIC record. Thanks to a new online service launched by HMRC, users can now view and plug contribution gaps directly through their personal tax account or the HMRC app.
“Buying back missing years can be worthwhile—but only if you truly need them,” said Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners. “Not everyone needs the full 35 years depending on their record, and overpaying doesn’t provide extra benefit.”
Why It Matters in the U.S.
Although these pension changes are happening in the UK, they could significantly impact British expats living in the U.S., dual citizens, and those with a UK work history expecting future pension payouts. The changes also hold international policy interest as the U.S. Social Security system faces similar demographic and fiscal challenges in the coming decades.
With the number of UK pensioners projected to grow by 5 million by 2070, these changes mark a pivotal moment in shaping retirement expectations.
Check Your Pension Age Online
Visit GOV.UK’s State Pension Age Tool to verify your retirement date and plan ahead.