State pensioners have been given another payout boost in 2025 thanks to the Triple Lock – but older retirees are missing out on as much as £2,798 per year. The Triple Lock automatically increases state pension payouts each year, either by inflation, wage growth or a flat 2.5%, whichever is highest. This year, wage growth is 4.1%, so it is the figure used to calculate pension increases. But many may not realise that the pension system is split into two schemes depending on when you retired.
State pensioners born before 1953, if they are a woman, and 1951 if they’re a man, have seen their pension increase by 4.1% from £169.50 to £176.45 per week. This is the old basic state pension, which was replaced in 2016 and anyone who hit retirement age on or after April 6, 2016, will receive the new state pension instead.
Across a full year, that means those on the old state pension will receive £9,175 in pension payments.
The full new state pension is going up by 4.1% as well, up from £221.20 per week to £230.25 per week.
That means those on the full new state pension will receive £11,973 over a year. That’s £2,798 more than the old state pension.
In both cases, these are the maximum amounts, for which you need roughly 30 to 35 years of National Insurance records in order to qualify.
For those stuck on the old state pension, there are ways to increase your payments, the biggest one being Pension Credit.
Pension Credit tops up your pension payouts if you currently receive less than about £218 per week, so most people on the old state pension will be eligible, assuming they have no other income (like a private pension or second property rental).
Those who are retired on the old pension can claim Pension Credit to top up their income to £227.10 per week for a single person and £346.60 for a couple.
It means that you’d receive £11,809.20 if you claimed Pension Credit, only £163.80 less than someone who retired after 2016 on the full new state pension.
To apply for Pension Credit, call the Pension Service Helpline on 0800 991234.
