These changes are coming into effect from 2026
Pension rules are set to change next year following Chancellor Rachel Reeves’ Autumn Budget last month.
However, that isn’t the only change coming in, as two many updates are coming that could impact Brits’ retirement plans.
Firstly, the full state pension is to rise in April to around £12,548 per year, or £241.30 per week, due to the triple lock, representing an annual increase of nearly £575.
Nearly 13 million older people on the State Pension will see payments rise by 4.8 per cent from April 6.
Labour Party Secretary of State for Work and Pensions Pat McFadden shared the new payment rates shortly after Chancellor Rachel Reeves delivered the Autumn Budget in Parliament on November 26.
Additional State Pension payment elements will rise by 3.8 per cent while the Standard Minimum Guarantee in Pension Credit will increase by 4.8 per cent – in line with the increase in average earnings.
From April, it will be £238.00 a week for a single pensioner and £363.25 a week for a couple.
The second change is that the state pension age will increase from 66 to 67 between 2026 and 2028, and to 68 between 2044 and 2046.
Those turning 66 after April 6 may have to wait longer before they can retire.
In an interview with The i Paper, Interactive Investor, Craig Rickman, said: “If you were born on 31 July 1960, your state pension age is 30 November 2026.
“Given that from April the annual full state pension will pay around £12,500, every additional month you have to wait equates to around £1,000, so make sure you factor this into your retirement plans to avoid an unwanted shock.”
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