State pensioners born prior to 1953 for women and 1951 for men will see their pensions rise by 4.8% from £176.45 to £184.90 weekly. State pensioners receiving the full new state pension will see their payments rise by 4.8% as well. Both pensions represent the maximum sums, requiring approximately 30 to 35 years of National Insurance records to qualify. However, older state pensioners might also qualify for additional state pension payments or SERPs. State pensioners certainly can make the most of their retirement with potential boosts in Pension Credit and possible Additional Pension payments.
State pensioners are due another payment increase from this April courtesy of the Triple Lock - however, older recipients are losing out on up to £2,932 annually in their minimum DWP payments when compared to newer state pensioners .
The Triple Lock mechanism automatically raises state pension payments each year, using either inflation, wage growth or a fixed 2.5%, whichever proves highest. This year, with wage growth at 4.8%, this is the figure being applied to calculate pension rises.
However, many might not be aware that the pension system operates under two separate schemes depending on retirement date. State pensioners born prior to 1953 for women and 1951 for men will see their pension rise by 4.8% from £176.45 to £184.90 weekly. This represents the old basic state pension, which was superseded in 2016, with anyone reaching retirement age on or after 6 April 2016 receiving the new state pension instead.
Over a complete year, this means those receiving the old state pension will get £9,614.80 in state pension payments. If they opt for the full new state pension, this will cover their essential living expenses. The full new state pension has also increased by 4.8%, rising from £230.25 weekly to £241.30 weekly. This means those receiving the full new state pension will get £12,547.60 annually.
That's £2,932.80 more than the old state pension. In both instances, these represent the maximum sums, requiring approximately 30 to 35 years of National Insurance records to qualify. For those remaining on the old state pension, there are methods to boost your payments, with Pension Credit being the most significant.
Pension Credit supplements your pension payments if you currently receive less than approximately £238 per week from April, meaning most individuals on the old state pension will qualify provided they have no additional income sources (such as a private pension or rental property income). Retired individuals receiving the old pension can apply for Pension Credit to increase their income to £238 per week for single people and £363.25 for couples (these are the updated April rates).
To submit an application for Pension Credit, contact the Pension Service Helpline on 0800 991234. However, those on the old state pension can sometimes find themselves in a more favourable position than new state pensioners. While the minimum DWP weekly payments are lower (unless supplemented by Pension Credit), older state pensioners have in certain instances qualified for Additional Pension payments or SERPs. This now-discontinued earnings-linked and employer-linked scheme enabled state pensioners to receive additional state pension payments during retirement.
In August, the Express highlighted a case of a basic state pensioner already paying tax on their pension due to extra Pre-97 state pension payments. Martin Lewis' MSE explains: 'Some people can get more than £230.25 a week. Under the previous State Pension rules, workers were able to build up what's known as the additional State Pension - a top-up to the former basic State Pension.
Although current rules have now scrapped this top-up, the Government has allowed many workers in their 40s, 50s and early-60s to keep their existing entitlement. With Pension Credit and possible Additional Pension payments, state pensioners certainly can make the most of their retirement
State Pensioners Triple Lock Minimum Dwp Payments Full New State Pension Pension Credit Additional Pension Payments Or Serps Martin Lewis
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