State Pension: Three in four savers to get smaller increase in April – £110 less | UK | News

The state pension is set to rise by 4.1% next month and just over three million pensioners are set to receive the maximum increase in their State Pension.

But Age UK has pointed out that three out of four, or just under 10 million pensioners, will receive less than this amount. This is because there are two types of state pension, the basic state pension and the new state pension; which one you get will depend what age you are.

Those on a full basic state pension, which pays out £169.50 a week, will not get as large a rise as those on the newer state pension, which pays out £221.20.

The basic state pension paid to those who reached the state pension age before April 6, 2016, so men born before April 6, 1951, and women born before April 6, 1953.

The basic state pension will go up by £6.95 a week or £361.37 a year, while those on the state pension, so those who reached official retirement age after April 2016 will see their payments increase by £9.07 a week or £471.62 a year.

Caroline Abrahams CBE, charity director at Age UK said: “Many people believe that all pensioners receive the same amount of state pension, but that’s not the case.

“Only pensioners in receipt of the full rate of the new state pension will receive the maximum increase in their state pension this year.

To get the full state pension you need to have 35 qualifying years of National Insurance (NI) contributions.

People can boost a basic state pension by defering it, which means you get a 1% increase for every five weeks you defer your pension, if you are on the new state pension you can get 1% for every nine weeks you defer your pension.

It is also possible to top up your state pension by topping up any missed National Insurance credits. You may have gaps in your National Insurance record if you have taken time out of the workplace to care for children or older relatives.

Many Brits are boosting their state pension by more than £10,000 a year through making one simple check

New figures show more than half a million are raking in £5,000 extra in inherited SERPS payments, including 17,460 who received in excess of £10,000.

The figures were obtained by Royal London as pensioners grapple with retirement savings and navigate pension tax. Additional income through this little known rule could help those eligible boost their retirement income.

Royal London found that some widows and widowers are doubling their money to more than £22,000 annually and is urging pensioners to check their entitlements in case they are missing out.

This is in addition to any state pension they are entitled to in their own right. As a result of the inheritance, some pensioners are currently receiving an enhanced state pension of up to £22,858 a year.