The UK government has confirmed that the entire new State Pension will rise to £221.20 per week starting in February 2025. This increase is part of the government’s efforts to support retirees as living costs increase. However, not everyone will be eligible for the full amount.
Eligibility depends on National Insurance (NI) contributions and employment history. To receive the full £221.20 per week, individuals must have 35 qualifying years of NI contributions. These contributions can come from working and paying NI through employment or self-employment, receiving NI credits when unemployed, ill, or caring for a relative, or making voluntary NI contributions to fill any gaps.
Those with at least 10 qualifying years can still receive a partial pension, with the amount based on their contributions. NI contributions play a crucial role in determining pension entitlement. Gaps in contributions can result in a lower pension amount.
To address this, individuals can use the State Pension Forecast Tool on the UK government website to check their predicted pension amount, make voluntary contributions to top up any gaps in their NI record and check for NI credits if they were caregivers, unemployed, or on benefits. Some individuals may receive more than £221.20 weekly due to additional pension schemes. Those who contributed to the Additional State Pension before 2016 might get an extra amount added to their weekly payments, known as a protected payment.
Deferring the pension can also increase payments; every year the claim is delayed, the pension amount rises. The first payments at the new rate will begin in February 2025. Payments are typically made every four weeks in arrears.
New state pension increase details
The State Pension Age determines when individuals can start claiming. As of 2025, the State Pension Age is 66 years old, but it is set to increase in the future.
Individuals should first get their pension forecast using the UK government’s pension checker to claim the State Pension. They can then apply online or by phone. The government usually sends a letter inviting individuals to claim their State Pension three months before reaching pension age.
If no letter is received, applications can be made online at GOV.UK, by phone at 0800 731 7898, or by post using a BR1 claim form. Once approved, payments are made directly to a bank account. It is important to note that the State Pension is taxable income and may affect other benefits.
Not everyone will receive £221.20 a week, as the amount depends on NI contributions. Those with less than 35 years of contributions will receive a reduced amount. However, individuals can increase their pension by making voluntary NI contributions or delaying their claim.
The State Pension is taxable and may affect other benefits. Individuals can still receive their pension while working and do not have to pay NI contributions after reaching State Pension age. The state pension typically increases each April under the Triple Lock system based on the highest inflation, wage growth, or 2.5%.
For more information and to ensure the best pension benefits, it is advisable to check NI records and explore options to maximize the pension.
Photo by Robert Tudor
