State pensioners are set to receive a 4.8% increase starting April 2026. The maximum New State Pension will rise from £230.25 to £241.30 per week, equivalent to £12,548 annually. Meanwhile, the older Basic State Pension—applicable to those reaching pension age before April 2016—will increase from £176.45 to £184.90 weekly (£9,615 per year).
These figures represent the highest amounts available, but many people receive less depending on their individual National Insurance (NI) records. Currently, the average weekly State Pension payment stands at £202.62, with the over-90 age group receiving the highest average of £213.79 weekly.
The difference in pension amounts stems from variations between the New State Pension scheme, introduced in April 2016, and the previous Basic State Pension. Entitlement is fundamentally linked to your NI contribution history.
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Over 13 million individuals currently receive a State Pension. Of these, 4.7 million are on the New State Pension, while 5.4 million receive the Basic State Pension or other older schemes.
To check your anticipated State Pension amount and your eligibility age, you can use the Government’s official calculator. Keep in mind that projections reflect current pension rates and may change with future rule updates.
If your forecasted pension is low, there are ways to increase it. One option is to purchase missing years of NI contributions. Additionally, low-income pensioners may be eligible for Pension Credit, a benefit designed to supplement State Pension income.
Many individuals have gaps in their NI record caused by factors such as living abroad, low earnings, career breaks, or periods of illness or caregiving where NI credits were not claimed. Understanding NI credits is crucial to maximizing your pension:
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Class 1 NI credits are available if you’re out of work but not claiming benefits. You can claim these through your local Jobcentre. Those receiving Statutory Sick Pay can apply for Class 1 credits via HMRC.
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Voluntary Class 3 contributions allow you to buy up to six missing years of NI. For the 2023/2024 and 2024/2025 tax years, each year costs £907. Previous years cost slightly less, such as £824.20 for 2022/2023. Each purchased qualifying year can add approximately £342 annually (based on the 2025/2026 rate) to your State Pension. Some people have increased their projected pension by over £50,000 by buying back missing years.
While buying back years may benefit those nearing State Pension age, younger people often fill NI gaps naturally over time through continued contributions.
Another way to enhance your pension is by deferring it. You don’t have to start claiming your State Pension the moment you reach pension age. Deferring your claim increases your weekly amount by 1% for every nine weeks you delay, which works out to around 5.8% per year.
For example, if Mary’s weekly pension is £230.25, deferring for one year raises it to about £243.60 per week, resulting in roughly £694 more each year, excluding annual pension uprates. Note that deferral payments are taxable, and deferring makes sense only if you expect to live long enough to benefit from the increased amount.
To sum up, understanding your National Insurance record and exploring options such as buying missing years or deferring your pension can significantly boost your retirement income. Always check your State Pension forecast and consider consulting a financial adviser to decide the best approach for your circumstances.