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Salary sacrifice pension cap 2029: will your payslip get worse?
8 min read
The State Pension Age (SPA) is changing. The transition from 66 to 67 began in April 2026 and will complete in April 2028. If you were born between 6 April 1960 and 5 April 1977, your state pension age has changed from what you may have previously expected.
The Transition Timetable
| Date of Birth | State Pension Age |
|---|---|
| Before 6 April 1960 | 66 |
| 6 April 1960 – 5 April 1977 | Between 66 and 67 (transitional) |
| 6 April 1977 – 5 April 1978 | 67 |
| After 5 April 1978 | 68 (proposed, legislation pending) |
The Current State Pension Amount (2026/27)
The full new State Pension is £241.30 per week (£12,547.60/year) for 2026/27, following the Triple Lock uprating. To receive the full amount, you need 35 qualifying National Insurance years. You need a minimum of 10 qualifying years to receive any state pension at all.
How Many NI Years Do You Have?
Check your NI record at gov.uk/check-state-pension. The website shows:
- How many qualifying years you have
- Years with gaps (where your contributions were insufficient)
- The estimated state pension you'll receive
- Whether you can pay voluntary NI contributions to fill gaps
Buying Missing Years: Is It Worth It?
Voluntary Class 3 NI contributions cost approximately £824 per missing year (2026/27). Each qualifying year adds approximately £6.90/week (£358.80/year) to your state pension. The payback period is just 2.3 years of retirement — making it one of the best financial decisions most people can make.
Frequently Asked Questions
Will the state pension age rise to 68?
The government has proposed rising the SPA to 68 for those born after 1978. Draft legislation suggests this will happen between 2044 and 2046 — a delay from the originally proposed 2037–2039. Nothing is finalised.
Can I defer my state pension?
Yes. You can delay claiming past your SPA to receive a higher weekly amount. For every 9 weeks you defer, your weekly payment increases by 1% (approximately 5.8% per year). If you're in good health and have other income, deferring can be financially advantageous.
Find your exact state pension age with our State Pension Age Calculator.