Thousands of state pensioners born before 1953 are set to receive £2,798 less per year than those retiring under the new state pension system, despite both groups receiving the same 4.1% pension increase in April. As reported by Express.co.uk, the pension system remains split into two schemes, leaving older retirees on lower payments.
Under the Triple Lock, state pensions rise each year by the highest of wage growth, inflation, or 2.5%. This year, wage growth of 4.1% determines the increase, benefiting all pensioners. However, those on the old basic state pension, which applies to men born before 1951 and women born before 1953, receive significantly less than those who retired after April 6, 2016, under the new state pension system.
How Much Less Will Older Pensioners Receive?
From April, the full new state pension will increase from £221.20 to £230.25 per week, meaning a yearly income of £11,973. In contrast, those on the old basic state pension will see their payments rise from £169.50 to £176.45 per week, giving them £9,175 per year—a £2,798 shortfall compared to those on the new system.
This gap has led to frustration among many older retirees who contributed to National Insurance for decades, only to receive less than those retiring under the new system.
Can Older Pensioners Increase Their State Pension?
While those on the old basic state pension are locked into lower payments, there is a way to boost their income. Pension Credit is available to pensioners on low incomes, topping up weekly payments to £218.15 for single people and £332.95 for couples.
From April, Pension Credit rates will increase, raising payments to £227.10 per week for single pensioners and £346.60 for couples. This means that pensioners who qualify for Pension Credit could receive £11,809.20 per year, closing much of the gap with those on the full new state pension.
Those interested in claiming Pension Credit can apply by calling the Pension Service Helpline on 0800 99 1234.
