In 2026, significant changes are on the horizon for individuals receiving either the state pension or a private pension. The state pension, funded by the Government based on one’s National Insurance (NI) record, is set to increase annually in line with the triple lock policy. This year, the state pension will see a 4.8% rise, with the full new state pension increasing from £230.25 to £241.30 per week, and the old basic state pension rising from £176.45 to £184.90 per week.
Private pensions, on the other hand, are personal savings that individuals contribute to, typically through workplace schemes or personal pension plans. Looking ahead to 2026, there are several important dates to note for those planning their retirement finances.
Additionally, the state pension age, currently set at 66 for both men and women, is scheduled to increase to 67 between 2026 and 2028. This change will first affect individuals born on April 6, 1960, who will now have to wait until they are 66 and one month to start receiving their state pension. Subsequently, the state pension age will gradually rise for those born in the following year until it reaches 67 for individuals born on March 6, 1961, and beyond.
Furthermore, plans are underway to introduce a pensions dashboard by October 31, 2026, allowing individuals to access all their pension information in one place for easier monitoring of their retirement savings. The Pension Schemes Bill, expected to become law in mid-2026, will include measures to consolidate small pension pots under £1,000, aiming to enhance savers’ returns and streamline fund management.
The Department for Work and Pensions (DWP) emphasizes the challenges posed by multiple small pension pots, citing potential hindrances to achieving optimal returns due to various flat rate charges. This initiative seeks to address these issues and improve the efficiency of retirement fund management for individuals across different pension schemes and providers.