Martin Lewis says state pensioners must 'be careful' over mistake that'll cost £475

Sounds podcast host has issued an update to state pensioners over a planned Triple Lock increase next April, in line with inflation.
-Credit: (Image: Reach Publishing Services Limited)


Martin Lewis has warned state pensioners to be "careful" as they miss out on a £475 Triple Lock hike. The BBC Sounds podcast host has issued an update to state pensioners over a planned Triple Lock increase next April, in line with inflation.

ITV regular Martin revealed not every state pensioner will get the boost - because there's TWO state pensions in the form of the New State Pension and Basic State Pension. Money Saving Expert founder Mr Lewis said: “It came in April 2016 and is a totally new type of pension for anyone who hits state pension age in April 2016 or beyond.

"But if you look at the numbers, only 1 in 4 pensioners are on the new state pension, the rest are on the old state pension because they hit state pension age beforehand. The old state pension is less than the new state pension therefore a 4.1 per cent rise in the old state pension is not as much.

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"So the vast majority of pensioners won’t see £475 a year, they will see £363 a year as the full old state pension rise, it’s much smaller than is often quoted.” He continued: “You need full qualifying National Insurance years. If you don't and millions don’t, especially many of the poorest, then you won’t get the full rise because it is a 4.1 per cent rise on what you’ve got, and the £363 a year for the old state pension is if you’re on the full old state pension but many aren’t on the full one so they will get less than that.”

Martin then added: “In the debate over Winter Fuel Payments, what’s often quoted is the Triple Lock increase of £475, but only 1 in 4 pensioners get the new state pension which is the higher amount and many of those won’t be on the full new state pension.

“So we need to be slightly careful. The vast majority of pensioners won’t get the full £475 which is the figure you will see quoted in many media outlets and government communications from this point onwards. The vast majority of pensioners will see an uplift that is far less than that.”