6 minute read
You’ve spent years imagining your last day at work. Maybe you’ve pictured the holidays you’ll take, the hobbies you’ll finally have time for or simply waking up without an alarm. But what if the date you’ve been counting down to quietly moved?
For decades, the State Pension has marked the start of retirement for millions of people. As we live longer and the UK’s population continues to age, that milestone is shifting too.
Whether retirement is five years away or 25, now is a good time to check that your finances reflect the latest changes. The government has already confirmed one increase to the State Pension age, while another review is under way. Understanding what could happen now can help you make more informed decisions about when and how you retire.
At a glance
- The State Pension age is rising from 66 to 67 between 2026 and 2028.
- The timing of the planned increase to 68 could change.
- Checking your forecast and other retirement income now can give you more time to prepare.
How is the State Pension age changing?
The first increase is already under way. The State Pension age will rise from 66 to 67 between April 2026 and April 2028, affecting people born after April 1960.
A further increase to 68 is currently scheduled between 2044 and 2046, but that timetable could change.
The government launched its third State Pension age review in 2025 to consider the future timetable, including whether changes are needed as people live longer.
An earlier rise to 68 between 2037 and 2039 has previously been proposed, although it was not put into law. The government has also said it remains committed to giving 10 years’ notice of any changes to the State Pension age, allowing people time to prepare.
Could the State Pension age mean working for longer?
For some people, a later State Pension age could simply mean adjusting their retirement date. For others, it could mean working longer because they can’t afford to stop when they want.
Research by the Standard Life Centre for the Future of Retirement found that more than a third of people aged 60 and over who have not yet retired believe they will have to work for longer as the State Pension age increases. Among those aged 60 to 65, 38% said they were already working longer to cover day-to-day living costs, while 37% said they were delaying retirement until they could claim their State Pension.
Catherine Foot, director of the Standard Life Centre for the Future of Retirement, said: “Working later in life can offer real financial and social benefits, particularly when it reflects personal choice. Yet for many people, this isn’t a lifestyle decision but a financial necessity.”
How could the State Pension age affect your retirement?
For many people, the State Pension isn’t just another source of income. It’s the milestone that signals they can finally stop working. If that date moves back, you may need to work for longer, draw on your savings sooner or rethink your retirement timeline.
According to HMRC’s Tax Confident guide, the full new State Pension is worth up to £12,547.60 a year in 2026/27. It’s a valuable source of guaranteed income, but it’s designed to provide a foundation for retirement, not fund it entirely. If you retire before you can claim it, you’ll need to wait longer , and may need another way to bridge the gap.
That could be a challenge for many households. The Scottish Widows Retirement Report 2026 found that 12.2 million people, or 31% of UK adults, are not on track for even a minimum retirement lifestyle. That makes it particularly important to understand how much of your expected income will come from the State Pension and how much you’ll need from other sources.
Four ways to prepare for changes to the State Pension age
1. Check your State Pension forecast
One of the easiest ways to prepare for retirement is to understand what you’re on course to receive. The government’s online forecast tool shows your State Pension age, how much you could receive based on your National Insurance record and whether you have any gaps in your contributions.
Checking it now gives you time to fill missing qualifying years, if needed, and build a clearer picture of your future retirement income.
2. Review where your retirement income will come from
The State Pension is only one part of the equation. Workplace pensions, personal pensions, ISAs, investments, and other savings all have an important role to play.
According to the Pensions UK Retirement Living Standards, a single person now needs around £45,400 a year for a comfortable retirement lifestyle, while a two-person household needs £62,700.
Understanding how each income source fits together can help you identify any gaps before you stop working.
3. Consider different retirement dates
Retirement doesn’t have to be an all or nothing decision.
Some people choose to phase into retirement by reducing their working hours, while others delay drawing on certain pensions or continue working part time. Considering more than one possible retirement date can help you prepare if your circumstances or government policy change.
Rather than asking, “Can I retire at 66?”, it can be more useful to ask, “What would my finances look like if I retired one or two years later?”
4. Make the most of pensions and tax allowances
If retirement is still several years away, even small increases to your pension contributions could make a meaningful difference over time thanks to investment growth and tax relief.
You may also want to review whether you’re making full use of ISAs and other tax efficient ways to save.
Don’t let one date define your retirement
Changes to the State Pension age don’t have to change your retirement ambitions. But they are a reminder that the date you stop working and the date you start receiving the State Pension don’t necessarily have to be the same.
Whether retirement is just around the corner or still years away, reviewing your finances regularly can help you understand what choices you have and whether you’re still on course for the future you want.
Not sure what the changes could mean for you? A Flying Colours Advice expert can help you understand your options and build a retirement plan around your goals. You can arrange a conversation with an adviser here: https://fcadvice.co.uk/book-an-appointment/
Please note:
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term (minimum of 5 years) and should fit in with your overall risk profile and financial circumstances.
The Financial Conduct Authority does not regulate estate planning, tax planning, trusts, or Will writing. Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
Planning horizons are illustrative and will vary based on individual health, circumstances, and life expectancy.