From June 2025, the UK government will increase the basic State Pension to £169.50 per week. This rise aims to ease financial pressure on retirees facing the ongoing effects of inflation and rising living costs. While the increase is welcome news for many pensioners, getting the full amount depends on several eligibility conditions like age, National Insurance (NI) contributions, and work history.
Overview
Here’s a quick breakdown of what this new pension update means:
| Feature | Details |
|---|---|
| New Pension Amount | £169.50 per week |
| Start Date | June 2025 |
| Eligibility Age | Men born before 6 April 1951, women born before 6 April 1953 |
| Qualifying Years Needed | 30 years of National Insurance contributions |
| Partial Pension | For those with fewer than 30 years of contributions |
| Optional Deferral | Adds 1% to payments for every 5 weeks you delay |
| Extra Pension Schemes | SERPS or S2P contributions boost your pension amount |
| Official Site | GOV.UK – State Pension section |
Who Qualifies?
Not everyone will receive the full £169.50. Your pension amount depends on both your age and your National Insurance contribution history.
Age Rules
- Men must have been born before 6 April 1951
- Women must have been born before 6 April 1953
- Anyone born on or after these dates will fall under the new State Pension rules, which operate differently
National Insurance Contributions
To receive the full basic pension amount, you must have at least 30 qualifying years of NI contributions. These can be from:
- Employment or self-employment
- Certain credits (e.g. for carers, job seekers, or those on maternity leave)
If you don’t have the full 30 years, you’ll receive a partial pension based on how many years you’ve contributed. The good news? You can top up your record by paying voluntary NI contributions.
How to Check Your Pension Forecast
Wondering what you’re likely to receive? It’s easy to find out:
- Use the State Pension Forecast tool on the GOV.UK website
- Call the Pension Service for a detailed look at your NI contributions
- Request a written statement online or by post
This will help you plan ahead and understand whether you need to top up your record.
Additional State
If you worked before April 2016, you may also qualify for extra payments through:
- State Earnings-Related Pension Scheme (SERPS) – available for higher earners
- State Second Pension (S2P) – designed for lower to middle-income workers
These schemes allowed people to build additional retirement income alongside the basic State Pension. If you contributed to either, your weekly pension payment could be more than the basic £169.50.
Should You Defer?
If you don’t need the pension right away, deferring might be a smart move. For every 5 weeks you delay claiming it, your pension increases by 1%—that’s roughly 10.4% more per year.
Deferring makes sense if:
- You’re still working and don’t rely on the pension yet
- You have other income sources and want to boost your future payments
- You want a bigger payout later in life
How to Apply
Applying is straightforward and starts when the Pension Service contacts you.
Step 1
About four months before you reach State Pension age, you’ll receive an invitation letter with details on how to apply.
Step 2
- Online: The easiest way—apply through GOV.UK
- By Phone: Call the State Pension claim line
- By Post: Fill out and mail a claim form
Step 3
Before applying, make sure you have:
- Your National Insurance number
- Your bank or building society account details
- Any info about additional pension contributions or deferrals
Taking time now to get your records in order can make a big difference when it’s time to apply. Whether you’re approaching retirement age or helping a family member plan, being prepared ensures a smoother process and maximum payout.
FAQs
When does the new pension rate start?
The £169.50 rate starts in June 2025.
How many NI years are needed for full pension?
You need 30 qualifying years of NI contributions.
Can I get more than £169.50 per week?
Yes, if you have SERPS or S2P contributions.
Can I defer my pension?
Yes, and it increases 1% for every 5 weeks you wait.
Where do I apply for State Pension?
Apply online, by phone, or post via GOV.UK or Pension Service.
