State pension 2025 increase explained - how to check how much you could get
The state pension could potentially rise to just under £12,000 next year if wage growth continues to outpace inflation. The state pension is annually adjusted by the triple lock mechanism, which ensures that payments increase by either September's consumer price index (CPI) inflation rate, the average earnings growth from May to July, or 2.5% - whichever is highest.
So, with the state pension likely to increase by wage growth in the 2025-26 tax year, how can you check your state pension? Here's what you need to know.
What is the triple lock and how does it work?
The triple lock guarantee was introduced by the Conservative-Liberal Democrat coalition government in 2011. It ensures that payments increase each year by whichever rate is higher from:, reports Leicestershire Live.
How much could the state pension rise by in 2025?
According to Which? News, the government uses the average wage growth year-on-year for the May-to-July period. The Office for National Statistics (ONS) has revealed this was 4% (including bonuses).
The most recent Consumer Price Index (CPI) inflation measurement, which monitors the price fluctuations for a basket of over 700 commonly used goods and services, stood at 2.2% in July. Experts predict that inflation will not exceed wage increases, suggesting that the new state pension is expected to increase by 4% come next April.
Experts have suggested that the state pension could see a 4% increase. Consumer watchdog Which?
clarifies: "Currently, the full level of the new single-tier state pension is £221.20 a week, or £11,502.40 a year. If it were to rise by 4%, it would be worth £230.05 a week, or £11,962.60 a year, which is a rise of over £460. Currently, the basic state pension is set at £169.50 a week in 2024-25 (£8,814 a year). A 4% increase would raise this to £176.30 a week or £9,167.60 per year a boost of over £353."
Wondering how to check your state pension forecast?
Eligibility for the state pension requires reaching the designated pension age, now standing at 66 for both men and women. Yet, there are scheduled increases on the horizon; between 2026 and 2028 the pension age will climb to 67 for those born from April 1960 onwards.
Later, another hike to 68 will occur between 2044 and 2046 for individuals born post-1977.
The sum you receive as your state pension is linked to the quantity of National Insurance Contributions (NICs) made during your working life.
To gain the full new state pension, you must accumulate at least 35 years of NICs, with a minimum of 10 years required to qualify for any pension amount. Should you have reached the state pension age prior to April 2016, securing the full basic state pension necessitates 30 years of contributions.
If you haven't yet reached the state pension age, there's an online government tool available to check your state pension forecast. This provides details on how much you could receive, when payments will start, and any potential increases.
When is the state pension paid?
The new state pension is typically paid every four weeks into your chosen account. Payments are made in arrears for the previous four weeks, which is why the increased payments for April won't be fully received until May.
The specific day you receive your payment is determined by your National Insurance number, but if it falls on a bank holiday, you may receive your pension earlier, according to GOV. UK.
Last two digits of your National Insurance number | Payment day of the week |
---|---|
00-19 | Monday |
20-39 | Tuesday |
40-59 | Wednesday |
60-79 | Thursday |
80-99 | Friday |
So, how much state pension will I receive in 2024-25?
Men born on or after April 6, 1951, and women born on or after April 6, 1953, are eligible for the new state pension. In the tax year 2024-25, the full new state pension is £221.20 per week, amounting to an annual total of £11,502.40, reports Which?
How do I claim my state pension?
You won't automatically receive your new State Pension - you have to claim it.
You'll need:
the date of your most recent marriage, civil partnership or divorce
the dates of any time spent living or working abroad
your bank or building society details
any social security numbers that you have for foreign state pension schemes
If you're applying online, you'll also need the invitation code from the letter about getting your State Pension.
If you haven't received an invitation letter but you are within 3 months of reaching your State Pension age, you can request an invitation code.