State pensioners born in certain years will receive up to £2,797 less annually in State Pension payments compared to other retirees. The UK's State Pension system is split into two distinct schemes - basic and new - each of which are paid at different rates.
Men born before April 6, 1951, and women born before April 6, 1953, are entitled to the basic State Pension, which under the new rates from April 2025, is worth up to £176.45 per week if you receive the full amount. However, those born on or after these dates receive significantly more.
The full rate for the new State Pension is worth up to £230.25 per week - £53.80 more than those who receive the full basic State Pension. State Pension rates rise at the start of every new tax year on April 6.
This year, both schemes were increased by 4.1%, in line with the annual increase in the average weekly earnings index for May to July 2024. This increase means that those who receive the new State Pension will get up to £470 extra per year if they receive the full rate, but those on the basic State Pension will only be up to £360 per year better off - £110 less.
Over a year, those on the full new basic rate will receive £9,175.40 in pension payments from April 7 - but this is a staggering £2,797.60 less per year than those receiving the full new State Pension for a year, reports Lancs Live.
According to the UK Parliament, an estimated 8.57 million pensioners claimed the basic State Pension in the 2024/25 tax year, while only 4.38 million were new State Pension claimants. Given that the majority of pensioners receive the basic State Pension, this suggests that up to 8.57 million could be missing out on up to £2,797.60 per year, compared to retirees on the new scheme.
However, it's not just age that determines which State Pension you receive. Everyone eligible for the basic State Pension has already reached State Pension age, but the amount you receive depends on your national insurance record.
To qualify for the full basic State Pension, men typically need 30 qualifying National Insurance years if born between 1945 and 1951, or 44 qualifying years if born before 1945. Women generally require 30 qualifying years if born between 1950 and 1953, or 39 qualifying years if born before 1950. Therefore, if you receive less than £176.50 per week, it indicates you have fewer than the full number of qualifying years.
Similarly, if you're on the new State Pension and receive less than £230.25 per week, you may need more National Insurance qualifying years to increase your weekly payments. You need at least 10 qualifying years on your National Insurance record to get any new State Pension, and typically 35 qualifying years to receive the full amount.
The Department for Work and Pensions has announced: "With uprating in effect, pensioners receiving the full basic State Pension will see their weekly payments rise from £169.50 to £176.45 per week, worth an additional £360 a year. In addition, the full rate of the new State Pension will increase from £221.20 to £230.25 per week, an increase of £470 a year."
Minister for Pensions Torsten Bell spoke about the government's dedication to supporting retirees, stating: "Raising the State Pension and rescuing the NHS – these are this government's priorities to give all pensioners the dignity they deserve in their retirement. Those who have worked hard throughout their lives, paying into the system, are owed nothing less."
He further added, "We're improving the lives of millions of pensioners through our £7.84 billion additional funding for the State Pension this year. That means up to £470 extra in pensioners' pockets from this week and comes alongside our work to boost Pension Credit uptake, and the £26 billion we've invested in the NHS that has seen waiting lists in England fall for 5 months in a row."
Story Saved
You can find this story in My Bookmarks.Or by navigating to the user icon in the top right.
