Were you born after 5 April 1960? If so, there have been changes to pension ages that may impact your plans.
There is often a gap between legislation being passed and when it takes effect. In many cases, this is because the law sets out a broad framework, with detailed regulations introduced later.
However, in some instances, the delay is intentional. This is the case with the State Pension Age (SPA) changes introduced under the Pensions Act 2014.
What is changing?
The legislation set out a phased increase in SPA to age 67 for both men and women born after 5 April 1960.
- The change begins in April 2026
- It will be fully implemented by April 2028
At the time the Act was passed in May 2014:
- The SPA for men was 65
- The SPA for women was around 62, gradually increasing to align with men
By March 2016, SPA had equalised at 65. It then increased again to 66 for both men and women by November 2018.
Why the long lead-in?
Changes to the State Pension Age have been, and continue to be, controversial.
To address concerns, the government committed to providing at least ten years’ notice for any increase in SPA. This explains the 12-year gap between the Pensions Act 2014 and the implementation of the increase to age 67.
What has changed since 2014?
While providing long notice periods offers certainty, it also carries a risk. The assumptions used when legislation is introduced may not hold true by the time changes take effect.
This is particularly relevant when looking at life expectancy data.
- In 2014, based on 2012 projections from the Office for National Statistics (ONS):
- A man aged 66 in 2018 was expected to live a further 21.1 years
- A woman of the same age was expected to live a further 23.7 years
- For those aged 67 in 2028, projections were 21.3 years for men and 23.8 years for women
- By 2026, using updated 2022-based ONS projections:
- A 67-year-old man in 2028 is now expected to live a further 18.6 years
- A 67-year-old woman is expected to live a further 21.1 years
What this means for you
These changes highlight how long-term policy decisions can be influenced by evolving economic and demographic data.
If you were born after 5 April 1960, your State Pension Age will be later than that of previous generations. Understanding how this fits into your wider retirement planning is key.
As part of the SMH Group, you will also benefit from access to a wider range of services to support you through every stage of your financial journey. We are here to give you the confidence to grow and shape your future.
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