State Pension Age (SPA) Increases - Less Than a Year Away
On 6 April 2026, the next stage of State Pension Age (SPA) increases begins. If you were born after 5 April 1960, the move will affect you. The process will take two years, gradually raising the SPA until anyone born after 5 March 1961 will have to wait until at least age 67 to receive their State Pension payment (and stop paying National Insurance Contributions). The subsequent move to an SPA of 68 is currently due to begin in April 2044 (for those born after 5 April 1977), although this might be brought forward.
So, did you know?
If you were not fully aware of those SPA changes, you are not alone. Successive governments have struggled to communicate SPA changes, as was highlighted in the long-running battle waged by the WASPI women on SPA equalisation. Recent research undertaken by the Institute for Fiscal Studies (IFS) suggests the SPA message remains unheard by many.
The IFS used questions posed in a long-standing ageing survey between 2021 and 2023 about the SPA awareness of people born between 1955 and 1965 – those close to the transition from an SPA of 66 to 67. The results were:
60% knew their SPA accurately, which the IFS defined to be within three months. Unsurprisingly, those caught in the 2026-28 transitional period with an SPA defined in years and months were not as accurate as people with round number SPAs.
18% overestimated their SPA.
11% underestimated their SPA.
11% answered with the pollsters’ least favourite response, ‘Don’t know’.
SPA matters
The State Pension is a key part of retirement income for many. The IFS says that, for current pensioners, on average, it represents around 44% of total retirement income. Not knowing when that will start or, worse, expecting it to start earlier than the legislation dictates, could wreck your financial planning.
While previously announced SPAs can change, the government has said it will give at least ten years’ notice of an increase. After the WASPI experience, the pledge seems certain to be adhered to. The chances of the move to 68 being brought forward from 2044-46 now look limited, as life expectancy has not been improving as fast as previously estimated. If anything, the timing should be pushed back, but HM Treasury will probably have a view on that idea…
Are you in the 60% who know their SPA?
To check go to https://www.gov.uk/state-pension-age. If you found yourself in the other 40%, your retirement plans may need to be reviewed.
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