This information relates to the 2023/24 tax year. Find out more about the State Pension for the current tax year.

The State Pension is changing

You may have heard terms like ‘triple lock’ or ‘pension credit’ being used a lot on the news recently. That’s because the State Pension – a regular payment from the government that most people can claim in retirement – is being updated. These changes will affect how much people may receive from the scheme.

In this article, we’ll explain what the State Pension changes mean for you and how it may impact your retirement planning.

Why is the State Pension increasing?

The State Pension increases at the start of every tax year (on 6 April) based on several factors – what is known as the ‘triple lock’. The amount the State Pension increases is determined by what is highest out of the following 3 factors:

  • The consumer price index (CPI) measure of inflation (measured for September the year before)
  • Average earnings between May and July of the previous year
  • 2.5%

How much is the State Pension increasing by this year?

From 6 April 2023, the State Pension will increase by 10.1%. This is the amount of inflation measured by CPI for September 2022.

How much State Pension will I receive?

This depends on whether you’re eligible for the new State Pension or the basic State Pension.

New State Pension

If you receive the new State Pension, the full amount you’ll receive for the 2023/24 tax year will be £203.85 a week (compared to £185.15 a week for the 2022/23 tax year).

You can claim the new State Pension if you’re:

  • a man born on or after 6 April 1951
  • a woman born on or after 6 April 1953

You’ll need 35 qualifying years of National Insurance contributions to get the full new State Pension.

Basic State Pension

If you receive the basic State Pension, the full amount you’ll receive for the 2023/24 tax year will be £156.20 a week (compared to £141.85 a week for the 2022/23 tax year).

You’ll get the basic State Pension if you’re:

  • a man born before 6 April 1951
  • a woman born before 6 April 1953

To claim the full amount, you usually need 30 years1 of National Insurance contributions.

1 If you reach state pension age (SPA) after 6/4/2010, but may be different if you reached SPA before this date.

You’ll usually get a portion of the State Pension if you have at least 10 qualifying years on your National Insurance record. If you have any gaps in your National Insurance record, you may be able to make voluntary contributions to increase the amount of State Pension you receive.

You can find out more on the government’s website about voluntary national insurance.

How do the State Pension changes impact my retirement planning?

While you’ll receive an increase in your state pension, it’s still unlikely to be enough for you to retire comfortably on.

If you’ve worked for an employer or been self-employed, it’s likely that you’ve picked up additional workplace or personal pension pots along the way. If you’re able to, putting a bit more into these pensions can give your savings a boost (and you’ll earn tax relief from the government at the same time).

Pay more into your workplace pension

Find out how workplace pension contributions work and how to pay more in.

Plan for your future

Are you on track to live the retirement you want? Find out by using our retirement planner in your account.

See how much you have with us

Members of The People’s Pension can log in to see their latest pension pot value.