State pension 2025 increase explained - how much you could get and how to check
The state pension could potentially rise to just under £12,000 next year if wage growth continues to outpace inflation. The annual adjustment of the state pension is governed 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 set 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.
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What is the triple lock and how does it function?
The Conservative-Liberal Democrat coalition government introduced the triple lock guarantee in 2011. This guarantee ensures that payments increase each year by whichever rate is higher from:
September’s Consumer Price Index (CPI) – a measure of inflation
average earnings growth (as of July)
a guaranteed minimum of 2.5%
How much could the state pension increase 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 tracks the price changes 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.
Specialists have advised presuming a 4% hike in the state pension, with Which? commenting: "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."
How can I check my state pension forecast?
To check your state pension forecast, you'll need to understand that eligibility hinges on reaching the state pension age, presently fixed at 66 for both sexes. Changes are on the horizon; from 2026 to 2028, the threshold will elevate to 67 for individuals born from April 1960 onwards.
An additional increase to 68 is scheduled between 2044 and 2046 for those born after 1977.
Your pension income will depend on the National Insurance Contributions (NICs) made during your employment history. To secure the entire new state pension, you're required to have 35 years of qualifying contributions, and at least 10 years' contributions to receive any pension.
Those who reached state pension age before April 2016 need to have contributed for 30 years to be eligible for the full basic state pension.
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 the amount you could receive, when payments will start, and any potential increases if applicable.
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, equating to an annual total of £11,502.40, as reported by Which?
How do I claim my state pension?
Your new State Pension won't be automatically given - 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.