As the UK government confirms a new increase to the State Pension, many retirees may be looking forward to a little more financial breathing room. From June 2025, the full new State Pension will rise to £230.25 per week, or roughly £11,976 a year—thanks to the triple lock policy. But as always, there’s a catch: not everyone qualifies for the full amount.
Let’s break down what this increase means, how you qualify for it, and what actions you can take to maximise your retirement income.
How the State Pension Is Changing in 2025
From June 2025, pensioners on the full new State Pension will receive:
| Pension Type | Weekly Amount (2025) | Annual Total |
|---|---|---|
| New State Pension | £230.25 | £11,976 |
| Old Basic State Pension | £176.45 | £9,175 |
This is a 4.1% rise from the 2024 rate of £221.20 per week, reflecting growth in average earnings—the basis for this year’s increase under the triple lock.
What Is the Triple Lock?
The triple lock ensures the State Pension increases each year by the highest of:
- Average earnings growth,
- Inflation (CPI),
- Or 2.5%.
For 2025, average earnings rose by 4.1%, so that’s what’s been applied.
Who Qualifies for the Full £230.25?
To receive the full new State Pension, you need 35 qualifying years of National Insurance (NI) contributions. These years can be built through:
- Employment (paying NI),
- Self-employment (if earnings exceed the threshold),
- Certain benefits (e.g., Jobseeker’s Allowance, Universal Credit),
- NI credits for unpaid caregiving, or child-rearing.
If you have fewer than 35 years, your pension will be reduced on a pro-rata basis. You need at least 10 qualifying years to receive anything at all.
Common Reasons for a Lower Pension
- Contracting Out
Before April 2016, many workers were part of contracted-out workplace pensions. They paid reduced NI rates, and in return, part of their pension came from their employer’s scheme—not the State Pension. This can reduce your entitlement. - NI Gaps
Years spent abroad, in low-income self-employment, or unemployed without claiming benefits may result in gaps in your NI record.
How to Fill Gaps in Your NI Record
You can often plug these gaps by paying voluntary Class 3 NI contributions. As of now, you can typically buy back up to 6 missing years, sometimes up to 10 years under special rules.
Real Example: Sarah
- 28 qualifying years
- Forecasted pension: £184/week
- Pays: £6,351.80 to buy 7 missing years
- New pension: £230.25/week
- Gains £46.25/week or £2,405/year, every year for life
Boosting Your Pension by Deferring
You can also delay your pension to receive more per week.
Real Example: Alan
- Defers pension for 4 years
- Pension increases by 5.8% per year deferred
- Final weekly pension: £283.61 instead of £230.25
How to Check Your Forecast
Visit GOV.UK’s State Pension forecast tool and log in using your Government Gateway account. You’ll see:
- How much you’re on track to get,
- When you’ll receive it,
- What you can do to improve it.
Pension Credit: Extra Support for Low Incomes
If your income is below a certain threshold, Pension Credit might top it up. In 2024, eligibility included:
- Single pensioners earning under £218.15/week
- Couples under £332.95/week combined
Pension Credit can also unlock extra help like:
- Council Tax reductions,
- Free TV licenses (over 75),
- Housing benefits.
Yet many miss out—don’t assume you’re not eligible.
The increase to £230.25 per week sounds generous, but it’s not automatic. What you actually receive depends heavily on your National Insurance history, your retirement planning, and whether you’ve had gaps in your record. Don’t leave money on the table. Take time now to check your pension forecast, fill in any missing years if you can, and consider strategies like deferring or claiming Pension Credit if eligible. Every bit can add up significantly over a retirement that may span 20-30 years or more.
FAQs
How many years of NI do I need for a full pension?
You need 35 qualifying years for the full new State Pension.
What if I have fewer than 10 years?
You likely won’t qualify for any State Pension unless special rules apply.
Can I pay to increase my pension?
Yes, through Class 3 voluntary NI contributions.
Is deferring worth it?
It can be—your pension increases by around 5.8% for every year deferred.
What is the difference between the new and old State Pension?
Those who reached State Pension age before April 2016 get the Basic State Pension, which is lower.
