Overview

• State Pension rates increased by 4.1% in April 2025, with the full new State Pension now at £230.25 per week and the basic State Pension at £176.45 per week.
• The retirement age will gradually rise from 66 to 67 starting in April 2026, affecting those born after April 6, 1960, with further increases to 68 planned between 2044 and 2046.
• The Personal Allowance remains frozen at £12,570 until 2027/28, leading to more pensioners paying income tax as their State Pension approaches or exceeds this threshold.
• An estimated 8.51 million pensioners paid income tax in the 2024/25 financial year, with projections suggesting this number will rise as pension rates increase.
• Reaching State Pension age alters benefit eligibility, disqualifying individuals from claiming income-based Jobseeker’s Allowance, Universal Credit, and other DWP benefits.