You’ve Planned Your Holiday… What About Your Retirement?
We all do it — spend hours searching for the best hotel deals, checking out flights, and daydreaming about poolside…
If you’re nearing retirement or already claiming your UK State Pension, here’s some good news: you’re getting a pay rise!
Yes, the government has confirmed a State Pension increase from April 2025, meaning more money in your pocket each week. But how much will you actually get, and what can you do to make the most of it? We’re here to break it down for you.
How Much More Will You Get?
Before we dive into the details, remember that not everyone qualifies for the Full New State Pension. Your entitlement depends on your National Insurance record. If you’re not certain you’ll get the full amount, we’ll cover how to check as well as how to boost your pension, so you don’t lose out.
From April 2025, the UK State Pension is set to increase by 4.1% under the Triple Lock system, which ensures pensions rise annually by the highest of inflation, wage growth, or 2.5%. This adjustment means a higher income for pensioners, potentially providing a bigger cushion for your retirement needs.
Here’s how this increase could impact your weekly payments if you’re eligible for the full amount:
| Pension Type | Current Weekly Amount | New Weekly Amount (from April 2025) | Weekly Increase | Annual Increase |
|---|---|---|---|---|
| New State Pension | £221.20 | £230.25 | £9.05 | £470.60 |
| Basic State Pension | £169.50 | £176.45 | £6.95 | £361.40 |
For more information on the New State Pension, the difference with the Basic State Pension and which you qualify for, check out our Your Guide To UK State Pensions.
Are You Eligible for the State Pension?
To qualify for the full New State Pension, you’ll need 35 years of National Insurance (NI) contributions. But if you have at least 10 years, you’ll still receive a portion of it (about 1/35th per year). If you’re not sure where you stand, it’s easy to check your National Insurance record. A quick review now could make a real difference to your retirement!
Don’t Miss Your Chance to Top Up Your State Pension
If you have any gaps in your NI record, there’s good news. You can still top up your contributions by buying extra National Insurance credits.
But time’s running out.
The deadline to make these extra purchases is April 5, 2025.
After this, the rules change, and you’ll only be able to fill gaps from the last six years. That means missing out on the chance to backdate contributions going all the way from 2006.
So, act now to ensure you receive the full amount possible!
Making the Most of Your State Pension Increase
An extra £9.05 per week might not seem like a game-changer, but it all adds up. And with a few smart choices, you can make it go even further than you think:
- Cut Unnecessary Costs: Take a fresh look at your bills—you might find better energy or broadband deals, and there could be pensioner discounts you didn’t even know you qualified for.
- Maximise Benefits: From Pension Credit and council tax reductions to free travel perks, there are plenty of ways to boost your budget without lifting a finger.
- Enjoy the Extras: Whether it’s a weekend away, picking up a new hobby, or simply enjoying an extra meal out with friends, this little boost can help you savour retirement even more.
- Consider Part-Time Work or Volunteering: If you love keeping busy, a part-time role or volunteering opportunity could bring both purpose and income, making your days even more fulfilling.
- Speak with a Financial Adviser: A chat with a Financial Planner (like us at Joslin Rhodes) can help you stretch your pension even further.
Are You Ready to Claim Your State Pension?
Reaching State Pension age (currently 66, rising to 67 by 2028) doesn’t mean your pension will automatically land in your account.
You’ll need to claim it by either:
If you’re not quite there yet, but you’re getting close to State Pension age, keep an eye out for a letter from the government with full instructions.
The State Pension Is Only One Part of Your Retirement Plan
While the 2025 State Pension increase is welcome news, it’s unlikely to be enough to fund the retirement lifestyle you dream of.
At Joslin Rhodes, we believe that retirement should be about enjoying life, not worrying about money and whether your pension will stretch far enough. And that’s where we can help. With our unique Lifestyle Financial Planning service and Pension Advice, our local experts can make it easier for you to maximise your savings and build a happier and more secure financial future.
Want to Make the Most of Your Pension?
Get in touch with our friendly Teesside team today to book your free consultation: Contact Us
Request your free call back
Pop your details below to arrange a call with our local pension & retirement planning advisers