Many Britons will be assessing their retirement plans in the coming months ahead of changes to pension rules next year. It comes as the state pension age is set to increase from 66 to 67 between 2026 and 2028, and to 68 between 2044 and 2046.
Here’s a look at two changes in 2026 that could change your plans to retire. The first is that 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. Under the triple lock guarantee, the state pension rises each April in line with the highest of three measures: average earnings growth between May and July, CPI inflation in September, or 2.5%.
As a result, there will be an increase of 4.8% in April 2026.
Another factor in deciding whether to retire is that the state pension access could be delayed.
As mentioned above, the state pension age is increasing to 67 over the next two years.
This means, as reported by The i Paper, anyone turning 66 later in the year may have to wait longer.
However, those celebrating their 66th birthday before April 6 will not be impacted.
Personal finance expert at Interactive Investor, Craig Rickman, told the newspaper: “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.”
He said that while retiring in 2026 depends on personal circumstances and ambitions for later life, there are “broad reasons to be optimistic”.
Other factors listed as worth considering in any decision include reforms to inheritance tax (IHT) in 2027 and no changes to pension tax rules on withdrawals.