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The government is taking another look at when we can start claiming the State Pension, and the age could be going up.
Liz Kendall, the Minister for Work and Pensions, has announced a review to make sure the State Pension is still affordable and fair in the years ahead.
Right now, the age is 66 for both men and women. It’s already set to rise to 67 from May 2026 for anyone born after April 1960. There’s also talk of it eventually increasing to 68 in the 2040s – but that’s not confirmed yet.
This review is part of a legal requirement to check the State Pension age every six years. The next official decision will be announced by 2029.
What does this mean for you?
If you’re in your 20s, 30s, or 40s, there’s a real possibility you’ll have to wait longer to claim your State Pension. Even if the age doesn’t change dramatically, there’s another big question: will it be enough to live on when you get there?
The current full State Pension is around £11,500 a year, and for most women, that’s not enough for the kind of retirement we’d want.
Additionally, it’s more common for women to miss out on the full state pension, due to years outside of the workforce childrearing. That means you may be entitled to even less than this figure. Considering that the yearly income required for minimum standard of living is £13,400 for a single retired adult, according to Pensions UK – Retirement Living Standards, you can see why it’s wise to store up other pots of money if you can.
How to future-proof your retirement income
The good news? You have time to take control. Here are some steps worth considering:
1. Check your State Pension age: You can do this quickly on the government’s website.
2. Top up your workplace pension: Many employers will match extra contributions, which is basically free money.
3. Think about a personal pension or Stocks & Shares ISA: These can help you build an extra pot alongside your workplace pension.
4. Get professional guidance: A financial planner can help you structure your savings, invest for growth, and make the most of tax benefits.
Women often face extra challenges when it comes to retirement savings – like career breaks, part-time work, or the gender pay gap. That’s why starting early and making regular contributions (even small ones) can make a huge difference over the years. Your journey to retirement starts now!
Bottom line
The State Pension is a useful safety net, but it’s unlikely to fund the retirement lifestyle you dream of. By taking action now, no matter your age, you can create a future that gives you choice, freedom, and security. Get in touch to discuss how to make the most of your pension contributions, to get you one step closer to the retirement you really want.