The State Pension changes on a regular basis, but how clued up are you on the most recent changes and how they might impact your entitlement? To help with any questions you might have, Kate Smith, our Head of Pensions, gives an overview on the latest updates. This includes:
- A quick recap on the State Pension basics
- The triple lock’s impact on increasing the State Pension’s value
- How the State Pension age will be changing
- Why more State Pensioners on low incomes should claim Pension Credit
This information is based on our understanding of current legislation, which may change.
1. State Pension: the basics
At its core, the State Pension is a regular payment you can claim from the government upon reaching State Pension age, designed to help you support yourself through later life.
Its purpose is to act as a foundational income during retirement, with many people also likely to have a combination of savings, assets and investments that can further help you to fund and make the most of your time after work. This could include workplace and private pensions, individual saving accounts (ISAs), lifetime savings accounts (LISAs), property, and other investments.
The State Pension payment you receive is dependent on two factors: whether you can claim the basic or new State Pension, and your National Insurance record.
In May 2024, 12.9 million people were receiving the State Pension, of which 4.1 million were receiving the new State Pension.1
The basic and new State Pensions
Whether you receive the basic or the new State Pension depends on when you reach the State Pension age, which is currently set at 66 years old.
If you reached State Pension age on or after 6 April 2016, you qualify for the new State Pension.2 From April 2025, the value of the full new State Pension is set to increase from £221.20 per week to £230.25 a week.3
For those who reached State Pension age before 6 April 2016, the basic State Pension system applies.2 Like the new State Pension, the full basic State Pension is set to increase from April 2025, going from £169.50 per week to £176.45 per week.3 You may also receive a State Earnings-Related Pension on top.
How much could you receive?
The value of your State Pension income is based on how many qualifying years of National Insurance contributions (NICs) you paid while working. This includes any NI credits you may have earned if you couldn’t work for reasons such as unemployment, illness, disability or parenthood. You can read more about qualifying years on the GOV.UK website.
To receive the full new State Pension, you need to have at least 35 qualifying years of NICs or NI credits.2 If you have a minimum of 10, but less than 35 qualifying years, you’ll be entitled to receive a reduced State Pension. Having more than 35 qualifying years of NICs or NI credits won’t increase your State Pension.
The earliest you can claim the State Pension is based on your State Pension age. You can check your State Pension age on the government’s website. It’s also possible to delay taking your State Pension, if you want to.
2. What is the State Pension ‘triple lock’?
Each April, the basic and new State Pensions increase in line with the ‘triple lock’.4 This is the government’s guarantee that the State Pension will increase by whichever is the highest of either:
- Average wage growth
- Inflation using the Consumer Price Index (CPI)
- or a minimum of 2.5%
The government committed to triple lock in 2024’s Autumn Budget, with the basic and new State Pensions set to increase in line with wage growth at 4.1% from April 2025.5 This was higher than both the CPI rate as at September (1.7%) and the minimum possible increase of 2.5%.
3. Will the State Pension age change?
At the time of writing, the State Pension age is set at 66 for men and women.6 But, between 2026 and 2028, it’s expected that the State Pension age will be increased to 67 for those born on or after 6 April 1960.
Similarly, between 2044 and 2046, another gradual increase is expected to see the State Pension age become 68 for those born on or after 6 April 1977.
These milestones represent the current timeline for changes to the State Pension age. However, the government has committed to a review of these plans within the next couple of years and must be completed by March 2029.7 This review will likely consider whether the increase in State Pension age to 68 remains appropriate and timely given life expectancy trends and government costs. The government is committed to following the principle of giving the public at least 10 years notice of any changes to the State Pension age.6
4. Claiming Pension Credit to unlock the Winter Fuel Allowance
Pension Credit is a means-tested benefit for pensioners on low incomes, designed to give you a little extra money to help with your living costs. It’s also a ‘gateway benefit’ to other valuable means-tested benefits, including the Winter Fuel Payment and Housing Benefit.
As of February 2023, over 1.4 million pensioners are receiving Pension Credit.8 However, it was also identified that a further 880,000 eligible households weren’t claiming it. Based on the average amount of Pension Credit awarded, this means they could be missing out on £3,900 a year to support them with their living expenses.
In the wake of changes to the Winter Fuel Payment, the government is encouraging more people to apply for Pension Credit.8 Having previously been a universal benefit available to all State Pensioners in the UK, the rules have changed for those in England and Wales. The Winter Fuel Payment can now only be claimed if you’ve successfully applied for Pension Credit. New rules will also apply in Scotland from the end of this year.
If you’d like to check if you’re eligible for Pension Credit, you can read my step-by-step guide to finding out.
Remember your other sources of retirement income
The State Pension is designed to offer you a base income for your retirement. So, it’s important, if you’re able, to continue to save and plan for your future after work.
If you have a workplace pension, remember that your employer will contribute towards your pot on top of your own pension contributions.
If you want to learn more about the State Pension, you can read our original guide: What is the State Pension and how does it work?
This article isn’t intended as financial advice. If you're unsure what to do or you need advice, please speak to a financial adviser. You can find a financial adviser near you at MoneyHelper. But it’s worth considering that a financial adviser is likely to charge for their service.
- DWP benefits statistics, State Pension statistics reinstatement: November 2024. Data source, Department for Work & Pensions, published 28 November 2024.
- Your State Pension explained. Data source, Department for Work & Pensions, published 8 April 2024.
- Benefit and pension rates 2025 to 2026. Data source, Department for Work & Pensions, published 21 November 2024.
- State Pension triple lock. Data source, UK Parliament, published 6 November 2023.
- Autumn Budget 2024. Data source, HM Treasury, published October 2024.
- State Pension age Review 2023: a GAD technical bulletin. Data source, Government Actuary Department, published 4 April 2023.
- State Retirement Pensions: Age. Data source, UK Parliament, published 9 December 2024.
- Pension Credit awareness drive as thousands of eligible pensioners yet to claim. Data source, Department for Work & Pensions, published 20 August 2024.