The UK State Pension has increased by an astonishing 10.1%.
It means many hard-pressed pensioners will enjoy an annual State Pension pay rise of close to £1,000 during the 2023/24 tax year.
However, exactly how much pension you receive will vary based on a number of factors.
The rest of this article looks in more detail at how the State Pension increases are calculated and how much you can expect to receive.
But first, if you're retired and struggling to make ends meet, make sure you are receiving all these vital credits and benefits that you are entitled to.
If you still need help bringing in extra cash after you've finished working, take a look at this guide to boosting income in retirement.
How the 2023/24 State Pension rise was calculated
The rate at which the following year's State Pension increased is currently calculated using what's known as the triple lock system.
In short, this means looking at the three figures of annual wage growth to July, inflation as determined by the Consumer Price Index in September (released in October), and 2.5%.
Whichever is the highest is the one that'll determine the following year's State Pension rise.
In 2022, CPI inflation was by far the highest at 10.1%, so this is the figure that has been applied to the 2023/2024 State Pension.
Now let's take a look at how much retirees will get in pounds and pence.
Which State Pension are you eligible for?
As a result of our convoluted and, some would say, unfair welfare system, there are two different State Pensions.
There's the old Basic State Pension and the New State Pension, which pay two significantly different amounts.
The old pension is given to anyone who retired before April 2016 and is worth notably less than those who retire on the new State Pension.
How much the New State Pension pays in 2023/24
The New State Pension pays almost £204 a week, or £10,600 a year.
How much the old Basic State Pension pays in 2023/24
The weekly Basic State pension pays around £156 a week, or £8,133 a year.
Past State Pension changes
Here’s how the State Pension has increased over the last few years.
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How State Pension has risen in previous years |
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April 2017 |
2.5% |
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April 2018 |
3% |
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April 2019 |
2.6% |
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April 2020 |
3.9% |
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April 2021 |
2.5% |
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April 2022 |
3.1% |
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April 2023 |
10.1% |
Boosting your pension income
If you're struggling to make ends meet in retirement, it's vital you ensure you're getting all the help you're entitled to from the Government.
Sadly, it's pensioners on low incomes who are most likely to miss out in this regard, so we've put together this checklist of vital credits and benefits people can get in retirement.
If you've gone through the list and are still struggling financially, take a look at this guide to boosting your income in retirement and this piece on clearing debt.
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