The pension age for women: what’s changed?

The state pension age for women has been steadily increasing since 2010 and will continue to rise until it reaches 68. On this page, you’ll learn more about the increase in the pension age for women and the effect it’s having. 

With further increases due in the coming years, we also consider some of the other ways you can boost your retirement fund, such as paying into a personal pension or opening a high-interest savings account.

The state pension for women (and, indeed, for everyone) is a regular payment made by the government to those who’ve reached eligible state pension age, giving everyone a solid financial base when they retire. 

The state pension is funded through National Insurance contributions and how much you’ll get depends on the number of National Insurance qualifying years you’ve worked. For this reason, not everyone is eligible for a state pension.

Currently, the state pension age for women is 66.

From the 1940s until April 2010, the state pension age was 60 for women and 65 for men. However, the government’s policy on women’s state pension age changed in the 1990s, when a timetable that would equalise the state pension age for men and women was agreed. The government’s decision under the 1995 Pension Act was to increase the state pension age for women from 60 to 65 between 2010 and 2020. 

However, the coalition government of 2010 decided to accelerate this timetable. They legislated in the 2011 Pension Act that by April 2016, the women’s state pension age would increase to 63, and to 65 by November 2018. In October 2020, the state pension age increased to 66 for both men and women and is set to rise further in the future.

The change in women’s state pension age in December 2018 was considered quite sudden, with the age increase to 65 brought in over two years earlier than originally planned. The reason given was that life expectancy in the UK had risen faster than expected since the last revised timetable, by 0.15% since 2019, and 1.55% since 2010. 

Raising the retirement age for women was also a way for the government to control its expenses. Increasing the pension age for women and bringing this increase forward means fewer women can claim their pension, making pensions more affordable for the government. 

The decision sparked a lot of controversy and led to the rise of movements like BackTo60 and Women Against State Pension Inequality (WASPI), which argue that the new state pension age for women is unfair.

Due to the age increase for women’s state pension, over 3.8 million women born in the 1950s have suffered detriment. The BackTo60 campaign argues that the changes were discriminatory, while others criticise the change for being too sudden and not giving women enough time to prepare for it. Here’s how it has affected women, particularly those born in the 1950s:

• When the state pension age increased in 2010, many women born in the 1950s were either approaching or very close to their original state pension age of 60
• This lack of notice meant that many women didn’t have time to adjust or make alternative financial arrangements that would have otherwise eased the transition

While the government heard these complaints, they were ultimately unsuccessful. Organisations like WASPI are still campaigning to reverse this decision, even though women’s state pension age is now 66. 

While the state pension age for men is also increasing, the change has particularly detrimental effects on women. In general, women are more affected by this age increase because:

• Only 52% of women are saving for retirement, compared to 60% of men
• Female pensioners’ net incomes only equate to about 85% of male pensioners’
• Over two-thirds of pensioners who are currently living in poverty are women

Yes, the Government plan to increase State Pension age to raise it from 66 to 67 between 2026 and 2028. This would affect those born on or after 6 April 1960. An additional increase is planned between 2044 and 2046, which would raise the State Pension age from 67 to 68, but this may be changed or brought forward.

You must meet the following requirements to be eligible to claim a state pension in the UK:

• You must work in the UK
• You must reach the state pension age determined by the government
• To claim a full pension, you must have made National Insurance contributions for 35 years (although these years don’t have to be consecutive), if you qualify for a state pension after April 2016
• If you’re not working, you can make voluntary National Insurance contributions, or the government can credit them for you

To help prepare for the next state pension age increase, you might want to consider paying into a personal pension  and/or a workplace pension. Workplace pensions are tax-efficient as they allow you to contribute to your pension through your monthly salary. Plus, your employer will automatically contribute on your behalf when deducting pension contributions from your salary. 

Another way to put money aside for your retirement is to open a savings account, especially one that pays a high interest rate such as a fixed rate bond. They tend to offer the most competitive rates of all account types as your money is locked in for a set duration, typically one year, two years, three years, five years or six months.

Start saving with Raisin UK

You can compare savings accounts with attractive interest rates on the Raisin UK marketplace. Simply register for a Raisin UK Account and choose the savings account that suits your needs. 

There’s no risk of losing your savings as the Financial Services Compensation Scheme (FSCS) protects deposits into savings accounts offered by UK-regulated banks.