Paul Mitchell | Financial and Retirement Planning Coach
Find him here at: Your Smart Retirement Coach
The Big Picture: Major Pension Changes Ahead
The UK pension landscape is experiencing significant changes that will affect millions of workers. While 2025 brought a welcome State Pension increase, the really big changes are coming in 2026 and 2028.
State Pension Increases for 2025: The Good News
The positive news. The State Pension increased by 4.1% in April 2025 thanks to the triple lock system.
What You’ll Receive in 2025:
Full New State Pension:
- £230.25 per week (up from £221.20)
- £11,973 per year (an extra £471 annually)
Full Basic State Pension:
- £176.45 per week (up from £169.50)
- £9,175 per year (an extra £361 annually)
However, this increase brings the State Pension dangerously close to the tax threshold of £12,570. Therefore, many pensioners will pay income tax for the first time.
State Pension Age: The Real Changes Coming
Current Situation (2025)
66 years old for both men and women (no change in 2025)
The Big Changes Ahead:
- From May 2026: State Pension age starts gradually increasing
- By 2028: State Pension age reaches 67 for those born after April 1960
- Future increases: Rise to 68 planned between 2044-2046
Important: The government recently confirmed it will NOT bring forward the increase to 68. Additionally, they plan another review within two years of the next Parliament.
The Imminent Changes: Pension Access Age Rising to 57
This is crucial information many people don’t know.
Currently, you can access workplace and personal pensions from age 55. However, this is changing.
Key Date: 6 April 2028
From this date, the minimum pension access age increases to 57 for most people.
Who’s Protected?
You can still access pensions at 55 after April 2028 if:
- You joined a qualifying scheme before 4 November 2021
- Your scheme rules specifically protected this pension age
- You’re a member of police, firefighters, or armed forces schemes
Who’s Affected?
If you joined a pension scheme on or after 4 November 2021, you’ll need to wait until 57 to access your pension from April 2028.
Real-World Impact: What This Means for You
Scenario 1: The Cliff-Edge Effect in 2028
Someone turning 55 on 5 April 2028 could access their pension that day. However, someone turning 55 on 6 April 2028 would have to wait nearly two years until they reach 57
Scenario 2: Age Protection Confusion
Many people think they have a protected pension age when they don’t. Furthermore, transferring pensions can affect your protection status.
Scenario 3: Tax Implications
The State Pension increase pushes more people into paying income tax. Additionally, this affects retirement income planning significantly.
Planning Strategies: What You Should Do Now
Immediate Actions:
- Check your State Pension forecast at gov.uk
- Review your pension age protection status
- Calculate your retirement income gap
- Consider voluntary National Insurance contributions
Medium-Term Planning:
- Review pension transfer implications carefully
- Plan for potential tax on State Pension
- Consider bridging strategies for early retirement
- Evaluate workplace pension contribution levels
Professional Advice:
These changes are complex. Therefore, professional retirement coaching helps you navigate the new landscape effectively.
The Age Protection Minefield: Transfer Risks
Warning: Transferring pensions can be complicated with the new rules.
Protected Pension Ages Can Be Lost If:
- You transfer to a scheme without age protection
- The receiving scheme doesn’t accept protected pension ages
- You don’t meet specific transfer conditions
Key point: Always check your protected pension age status before making any pension transfers.
What the Government Says
The legislation introduces an increase in the NMPA to 57 from 6 April 2028 and members of the firefighters, police and armed forces public service schemes will not be affected by this increase.
Additionally, the full new State Pension now receives £230.25 a week (up from £221.20) following the 4.1% increase.
Planning for Success: Next Steps
Review Your Retirement Timeline
- When do you want to retire?
- What income will you need?
- How will these changes affect your plans?
Bridge the Gap
The average pension pot is under £50,000. Therefore, most people need additional retirement income beyond the State Pension.
Get Professional Help
These changes create a complex planning environment. However, expert retirement coaching helps you make informed decisions.
Conclusion: Don’t Wait to Plan
These pension age changes represent the biggest shifts in UK retirement planning for decades. However, with proper planning, you can still achieve your retirement goals.
The key is acting now. Therefore, don’t wait until you’re 55 or approaching State Pension age to start planning.
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These changes don’t have to derail your retirement dreams. However, they do require expert guidance to navigate successfully.
👉 Book your FREE 15-minute initial discovery ZOOM call to discuss how these changes affect your personal situation and what steps you should take now.
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About the Author
Paul Mitchell is a dedicated Financial and Retirement Coach (Qualified To Chartered Financial Planner status) with over 35 years of experience in financial services. Through Your Smart Retirement Coach, he helps clients build confidence in their financial future and create fulfilling retirement lifestyles. As a retirement transition coach, I’m committed to empowering investors with knowledge, perspective, and strategic support.
Important Disclaimer
This article is for general information purposes only and does not constitute financial advice. The information provided is based on current legislation and government announcements as of June 2025, which may be subject to change.
Individual circumstances vary significantly. Therefore, you should always seek professional financial advice tailored to your specific situation before making any pension or retirement planning decisions. Additionally, tax rules and pension regulations can change, and their impact will depend on your personal circumstances.
Your Smart Retirement Coach provides retirement coaching and guidance, not regulated financial advice. For specific pension transfer advice or regulated financial planning, please consult with an FCA-regulated financial adviser.
