What you need to know about the new state pension in 2025

The State Pension is one of those things many of us vaguely think about but rarely look into until we’re close to retirement. It can feel a bit complicated, especially with all the changes over the years. So let’s break it down in simple terms.

Back in 2014, the government decided the State Pension needed a shake-up. The goal was to make it easier to understand and fairer for everyone. That led to the Pensions Act 2014, which brought in a new system that started on 6 April 2016. If you reached State Pension age from that date onwards, the new rules apply to you.

How much is it worth in 2025?

In the 2025 to 2026 financial year, the full rate of the new State Pension is set at £230.25 per week. That adds up to just over £12,000 a year. It’s a regular income that can make a real difference in retirement, especially when combined with other savings or workplace pensions.

Will everyone get the full amount?

Not necessarily. How much you receive depends on your National Insurance record. You’ll usually need at least 35 qualifying years to get the full pension. If you’ve got fewer years, you’ll get a proportion of the full amount. There are some exceptions, particularly if you’ve been contracted out or have gaps in your contributions, but in general, the more complete your record, the more you’ll get.

What about the triple lock?

There’s also the triple lock. This is a guarantee that the State Pension will rise each year by whichever is highest out of average earnings, inflation or 2.5 per cent. It’s been under a bit of political pressure in recent years but so far it’s stayed in place. That’s important for keeping up with the cost of living and making sure the pension retains its value over time.

How can I find out what I’ll get?

If you’re not sure what your personal situation looks like, you can check your State Pension forecast online. It gives you a good idea of how much you’re likely to get and when you’ll get it. You can also see if you can top up your National Insurance record.

Why it’s worth planning ahead

Planning for retirement isn’t always easy, especially with the rising cost of living. But understanding how the State Pension works is a good starting point. It’s a foundation you can build on with other forms of income to help you feel more secure about the future.

If you’re years away from retiring, it still helps to know about it all now. A little planning early on can go a long way when the time comes to put your feet up.