Big changes are on the horizon for those receiving state pensions or private pensions in 2026. The state pension, determined by one’s National Insurance (NI) record, is government-funded. Private pensions, on the other hand, are built through personal contributions, commonly via a workplace scheme or personal pension plan.
In the upcoming year, it is crucial to mark key dates related to retirement planning. The state pension undergoes an annual increase based on the triple lock mechanism, which guarantees a rise each April. For April 2026, the state pension will see a 4.8% increase, with the full new state pension climbing from £230.25 to £241.30 per week. Additionally, the old basic state pension will rise from £176.45 to £184.90 weekly.
Currently set at 66 for both genders, the state pension age is anticipated to climb to 67 between 2026 and 2028. Individuals born on April 6, 1960, will be the first affected by this change, delaying their state pension collection to age 66 and one month. This increase will gradually extend to those born on March 6, 1961, setting their state pension age at 67, which will become the new retirement age moving forward. Furthermore, a subsequent rise to 68 is projected between 2044 and 2046.
The pensions dashboard, an online tool, is set to streamline pension tracking by consolidating pension information from various providers. By October 31, 2026, around 3,000 providers and schemes are expected to be integrated into the dashboard. The Pension Schemes Bill, likely to become law in mid-2026, will introduce changes gradually, including the consolidation of small pension pots under £1,000. The Department for Work and Pensions (DWP) highlights that having numerous small pots can hinder savers from optimizing their retirement funds due to multiple flat rate charges.