The State Pension and retirement planning
From April 2025, the full new State Pension is £230.25 per week for individuals who reached state pension age after April 2016 and £176.45 per week for those who reached state pension age prior to April 2016.
This increase follows the Government's triple lock commitment, which guarantees that pensions rise in line with the highest of the consumer price index (CPI) measurement of inflation from September the year before, average earnings, or 2.5%. As the CPI measured inflation at 4.1% in September 2024, this is the amount by which the State Pension increased.
Understanding the latest State Pension amounts is important for ensuring you are efficiently planning for your retirement.
Who is eligible for the full State Pension?
Not everyone automatically qualifies for the full amount. Eligibility depends on your National Insurance (NI) contributions.
- You usually need 35 qualifying years of NI contributions or credits to receive the full amount.
- If you have fewer than 35 years, your pension will be reduced proportionally.
- A minimum of 10 qualifying years is needed to receive any State Pension at all.
What counts as a qualifying year?
A qualifying year means you have either:
- Paid NI contributions through employment or self-employment,
- Received NI credits (for example, while caring for children or unemployed), or
- Made voluntary NI contributions to fill any gaps.
Key dates for claiming the State Pension
- State Pension age is currently 66 but will gradually rise to 67 by 2028.
- You cannot claim the State Pension before reaching State Pension age.
- Individuals should plan ahead to ensure private pensions and other retirement savings complement the State Pension.
For many, relying on the State Pension alone may not be enough, meaning reviewing your pension plans now is crucial.
Planning beyond the State Pension
The State Pension provides a foundation, but it is often not enough for a comfortable retirement on its own. Individuals should:
- Review private pensions and investments,
- Seek professional advice on tax-efficient retirement planning.
We’re here to help
If you need support with planning for retirement, please get in touch with a member of our specialist team via the form below.