State pensioners who reached retirement age after 6 April 2016 are set to receive a significant boost from the Department for Work and Pensions (DWP). Chancellor Rachel Reeves has confirmed a 4.8% rise to both the basic and new State Pension, resulting in an extra £575 annually for recipients of the new State Pension and £440 for those on the basic State Pension.
This change affects men born on or after 6 April 1951 and women born on or after 6 April 1953, as the State Pension system was reformed on 6 April 2016. The reform replaced the old, complex system—which combined the basic State Pension and Additional State Pension—with a simpler new State Pension scheme. This makes it easier for individuals to understand their expected retirement income well before reaching State Pension age, aiding in better financial planning.
The amount you receive depends primarily on your National Insurance (NI) record. To qualify for the full new State Pension, individuals need 35 qualifying years of NI contributions or credits. Many people have a mixture of contributions both before and after April 2016, and the new system ensures that no one receives less pension than under the old rules, provided they meet at least 10 qualifying years.
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Qualifying years don’t have to be consecutive, and the amount you get under the new scheme is typically based on your own NI record alone. For most, the State Pension is one part of their retirement income, alongside workplace pensions, personal savings, or earnings.
This increase is a welcome boost for pensioners, offering extra financial support in retirement and reflecting the government’s commitment to safeguarding pension income.