BBC expert says 'great pensions steal' will cost people born on this date £13,000 in 2026

A BBC expert has accused the government of a 'great pensions steal' with people born on one date missing out to the tune of almost £13,000. Paul Lewis, who presents Money Box on Radio 4, explained that the rise in pension age next April will particularly hit one age group.

The State Pension age is scheduled to increase from 66 to 67 between April 2026 and March 2028. This change, legislated by the Pensions Act 2014, affects individuals born from April 6, 1960, and later. The precise date you will reach the new State Pension age depends on your specific date of birth, with the increase phased in gradually during this two-year period.

Writing on his blog Mr Lewis explained that anyone born after this date was going to miss out: "Anyone born 6 April 1960 or later will not get their state pension at 66. They will have to wait up to 12 months after that birthday to qualify, costing them up to £12,849 in lost state pension.

"The rise in state pension age will happen in stages linked only to date of birth. It will be identical for men and women and apply throughout the UK."

He explained that he has carried out calculations which show that people born on 6 April 1960 or later miss out by £12,849 through getting their pensions later. He explained: "The actual loss for any individual will depend on the day of the week which is their payday. That is a weekday from Monday to Friday and depends on their National Insurance number.

"The loss assumes the individual gets a full New State Pension and assumes that will be £241.05 from 6 April 2026 and £247.10, an increase of 2.5 per cent, from 12 April 2027. The state pension is accumulated weekly so there are four or five weekly payments in a month which accounts for the difference between the minimum and maximum losses.

"No account is taken of the up to six days pension that is paid between the birthday and the first payday."

The Pensions Act 2014 brought forward the increase in the State Pension age from 66 to 67 by eight years. The UK Government also tweaked the phasing of the State Pension age increase, meaning that instead of reaching State Pension age on a specific date, peopleborn between 6 March 1961, and 5 April 1977, will be eligible to claim the State Pension once they turn 67.

Experts say that people need to make plans for the changes so they won't be surprised financially. All those affected by changes to their State Pension age will receive a letter from the Department for Work and Pensions (DWP).

Chancellor Rachel Reeves last month said a review which could see the age being increased even further is needed to ensure the system is "sustainable and affordable". The Government review is due to report in March 2029 and Ms Reeves said it was "right" to look at the age at which people can receive the state pension as life expectancy increases.

The state pension age is currently 66, rising to 67 by 2028 and the Government is legally required to periodically review the age.

The Chancellor told reporters: "We have just commissioned a review of pensions adequacy, so whether people are saving enough for retirement, and also the state pension age. As life expectancy increases it is right to look at the state pension age to ensure that the state pension is sustainable and affordable for generations to come.

"That's why we have asked a very experienced set of experts to look at all the evidence."

The review was announced by the Department for Work and Pensions and will involve an independent report, led by Dr Suzy Morrissey, on specified factors relevant to the Review of State Pension Age along with the Government Actuary's Department's examination of the latest life expectancy projections data.

Rachel Vahey, head of public policy at AJ Bell, said: "An increase to state pension age from 66 to 67 is already slated to happen between 2026 and 2028. But it's less clear what will happen after that.

"There is also an increase to age 68 pencilled in for 2046, but a faster increase is definitely on the cards. The first two reviews of the state pension age advocated bringing this forward, but successive governments have treated the issue like a hot potato.

"This latest state pension age review, however, may eventually force the government's hand.State pension benefits are one of the single biggest expenses for the Treasury and account for more than 80 per cent of the £175 billion pensioner welfare bill."

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