MARTIN Lewis has revealed the exact amount state pensions payments will rise by within weeks.
The Money Saving Expert (MSE) founder explained just how much incomes will go up in the latest episode of the Martin Lewis Money Show.
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This week’s episode was a pensions special where Martin delved into all things retirement and pensions saving.
At the start of the show, Martin explained that pensions will go up with inflation at the start of the new tax year in April.
The move will mean that millions of pensioners will get a rise in their state pension payments of up to £870.
Martin said: “The old state pension is for those who hit state pension age by April 6, 2026 – so you’re roughly aged 70 or more.
“Full state pension is roughly £141 a week and it’s all going up – and with inflation being high it’s going up quite a lot this year – to £156 a week
“That will start in the new tax year in April.
“The new state pension – the full amount – is £185 per week that’s going up to £204 a week from April.”
This means that the new state pension rate of £185.15 per week will increase by £18.70.
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It means pensioners would get a total of £10,600 a year.
While the old, or basic state pension, will go up £14.35 from £141.85 per week to £156.20.
Over the year, that would be an increase of £746.20 to £8,122.40 in total.
The rise was confirmed in last year’s Autumn Budget when Chancellor Jeremy Hunt said the triple lock will stay – and pensions will rise in line with inflation.
The triple lock is a calculation used to determine how much the state pension rises by each year.
It was introduced by the coalition government in 2010 and sees pension payments increase in line with whichever of the following is highest
During the show, Martin also shared a simple check that anyone can make to get a cash boost from finding missing pension pots.
What is the state pension?
The state pension is a weekly payment from the government to men and women aged over 66.
The age when receipt begins is due to rise to 67 by 2028 and 68 between 2037 and 2039.
It’s intended to give anyone a retirement income to support them as they get older.
You can spend the money as you wish, but it is treated as income so you may have to pay tax on it if all your earnings are above the annual personal tax allowance, currently £12,570.
How do you qualify for the state pension?
The full state pension is only paid to those with a minimum 35 years of national insurance contributions.
This is one of the taxes you pay while working and builds up your entitlement to the state pension.
There may be gaps if you were unemployed, lived abroad or took time off to care for children or relatives, which means you could get a lower amount.
But in some cases, you can apply for credits to top up your retirement fund.
You need at least ten years of qualifying national insurance contributions to get any state pension payments.
This doesn’t have to be from ten years working in a row.
You can build up your eligibility as long as you have paid national insurance contributions for the equivalent of a decade during your working life.
It is possible to make voluntary national insurance contributions to top up your record, usually from the previous six years.
You can use a government tool to find out how many years of contributions you have and how much state pension you’re likely to get.
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