The new State Pension is generally higher than the old one because it was designed to provide a higher flat-rate,, minimum income in exchange for requiring more National Insurance (NI) years, coupled with the "triple lock" mechanism. The new system, for those reaching state pension age on/after April 6, 2016, offers a higher base rate designed to be closer to a living wage, often exceeding the basic old system.
To receive the new State Pension in full, you must have made 35 years of qualifying NI contributions - but to get the basic State Pension you need only 30 years' worth. Meanwhile, many people will be waiting longer to be paid under the new rules, given the retirement age is rising.
The old state pension has two elements. Basic Pension and Additional State Pension. The new state pension is a fixed amount based only on how many full years of NIC you have. To receive Additional State Pension you had to pay contributions under SERPS and/or the Second State Pension scheme (SP2) which superceded it.
The new State Pension increases each year by whichever is the highest: earnings – the average percentage growth in wages (in Great Britain) prices – the percentage growth in prices in the UK measured by the Consumer Prices Index ( CPI ) 2.5%
The basic and new State Pension will be uprated by 4.8% from April 2026.
For example, State Pension increased 10.1% in 2023, 8.5% in 2024 and 4.1% in 2025, costing billions. Legally, the government is only required to increase State Pension in line with the average increase in wages. This means they could decide to scrap the triple lock in the future.
From 20 September 2025, the maximum full Age Pension will increase by: $29.70 per fortnight for singles.
Having more than 35 qualifying National Insurance years doesn't boost how much State Pension you receive. The only way you may get more is if your 'starting sum' under the new rules is higher than the maximum £230.25 (2025/26) State Pension.
From 20 September 2025, the full pension is available, under the assets test, for homeowner singles whose assessable assets are under $321,500 – for homeowner couples the number is $481,500. The numbers for non-homeowners are $579,500 and $739,500 respectively.
You may inherit part of or all of your partner's extra State Pension or lump sum if: they died while they were deferring their State Pension (before claiming) or they had started claiming it after deferring. they reached State Pension age before 6 April 2016. you were married or in the civil partnership when they died.
The Old Pension Scheme (OPS) provides a secure pension with regular increases through Dearness Allowance (DA). The National Pension Scheme (NPS) allows greater investment flexibility and the chance for higher returns, but it carries more risk due to market fluctuations.
How to increase your retirement income
In November 2025, the full retirement age (FRA) — the age at which individuals qualify to receive 100% of their Social Security benefits — increased to 66 years and 10 months for those born in 1959. FRA gradually rises month by month, so in November 2025, those born in January 1959 reached their FRA.
If you've had a workplace, personal or stakeholder pension in the past and been paying reduced National Insurance contributions (known as 'contracting out'), your starting amount may be less than the full amount. Contracting out has ended under the new system.
The basic State Pension is currently £137.60 per week. This amount goes up each year. If you can get it, the full new State Pension amount is £179.60 a week. The money you may be able to get could be lower.
For people aged 60, Fidelity's retirement savings guidelines recommend an amount in savings worth six times your salary in order that you have enough to maintain your standard of living in retirement. So, someone earning £60,000 would need £360,000 in savings - which can mean money both inside and outside of pensions.
So just over $1m is enough to not give you any pension. However, once you use some of it you may be entitled to a part pension which will also give you the concession card to get reductions in some utilities etc.
People of pension age can have up to £10,000 savings in the bank before it affects their pension credit. So if you have savings over £10,000, it will start to count towards your income calculation. Every £500 over £10,000 will be calculated as £1 additional income per week.
If your 'starting amount' is more than the full amount of the new State Pension. You will get this higher amount when you reach State Pension age. It is possible to have a starting amount higher than the full new State Pension if you have some Additional State Pension.
From 6 April 2025, the State Pension will increase by 4.1%.
Cost of Living Adjustment (COLA):
For the January to March 2025 period, there won't be an increase, as the CPI showed a small dip over the last three months. But don't worry—over the past year, benefits have still grown by 2.0%, helping seniors keep pace with rising living costs.
Information about the Pensions increase 2025. The Annual Pensions Increase for 2025 is 1.7%, payable from 7th April 2025.
Who Will Receive the $1,100 Centrelink Bonus. The bonus will be automatically issued to eligible Australians receiving approved Centrelink payments. Those expected to qualify include: Age Pension recipients.