How much is the State Pension going to be in April 2025?

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What has caused the State Pension to rise by 4.1%?

The State Pension increases every April by whichever of the three measures in the triple lock is highest. For April 2025, the State Pension will rise in line with wage growth, which have increased to offset the cost of living.

Last year’s (April 2024) State Pension growth was 8.5% one of the largest ever increases in the State Pension. This year’s 4.1% rise reflects slowing wage growth across the country after the jumps seen in post-pandemic times as the economy began to recover.

What is the State Pension triple lock?

Introduced by the Conservative-Lib Dem coalition government in 2010, the State Pension triple lock increases the value of the state pension by whichever of the following measures is highest:

• Inflation in September of the previous year, using a measure called the Consumer Prices Index (CPI).
• Earnings growth, based on the average increase in total wages across the UK for May to June of the previous year.
• Or 2.5%.

The State Pension triple lock was introduced to ensure that the State Pension increased in line with the cost of living and wasn’t overtaken by the average wage of workers in the country. The current Chancellor, Rachel Reeves has said the government will keep the triple lock until the end of the current Parliament.

What is the basic State Pension?

The basic State Pension is given to those who have enough National Insurance qualifying years, and either a:

• Man born before 6 April 1951.
• Woman born before 6 April 1953.

Everyone eligible for the basic State Pension has now reached State Pension age. If you were born after the dates above, you’ll instead receive the new State Pension. The basic State Pension began phasing out from 6^th April 2016 to a less complex system.

What is the new State Pension?

Those reaching State Pension age after 6^th April 2016, will receive the new State Pension. This is a simplified system that is based on the number of National Insurance qualifying years you have.

You need at least 10 qualifying years on your National Insurance record to get any new State Pension, and to get the full amount you normally need at least 35 years of National Insurance contributions.

What is a qualifying year on a National Insurance record?

A qualifying year is one in which you were:

• Working and made sufficient National Insurance contributions.
• Getting National Insurance credits for example if you were unemployed, ill, or a parent or carer.
• Paying voluntary National Insurance contributions.

You might also qualify if you’ve lived or worked abroad or paid reduced rate National Insurance for married women.

What does this mean for me?

If you’re about to retire or are retired and want to understand how your financial situation will change, our retirement advice service offers you regulated financial advice to help you make your pension work smarter for you. Get in touch.