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UK State Pension Rises 4.8% as Pension Age Starts Climbing to 67

Ministers are weighing targeted early access as cost and tax pressures build.

Overview

  • The state pension age, which began rising Monday, will increase by one month each month until it reaches 67 in April 2028.
  • This year’s triple lock uplift set the full new state pension at £241.30 a week, about £575 more a year than before.
  • DWP minister Torsten Bell told MPs the department is taking proposals for targeted early access seriously for people who cannot work to older ages.
  • Royal London estimates the phased rise will extend National Insurance payments, adding about £4,011 for a £100,000 earner and over £14,000 for their employer.
  • With tax thresholds frozen, the full new pension now sits just £22 below the personal allowance, which Vanguard says will pull more retirees into paying income tax.