Older state pensioners across the UK are facing a significant financial shortfall in their retirement income. Men born before 6 April 1951 and women born before 6 April 1953 are entitled to the basic State Pension, which pays much less than the new State Pension available to younger retirees.
The result is a staggering difference of £2,797 per year, despite both groups contributing to the system through their National Insurance records.
This article breaks down the payment rates, eligibility criteria, the impact of the triple lock, and why millions of older pensioners are receiving far less than their younger counterparts.
Two State Pension Schemes in the UK
The State Pension is divided into two systems:
- Basic State Pension: For men born before 6 April 1951 and women born before 6 April 1953.
- New State Pension: For men born on or after 6 April 1951 and women born on or after 6 April 1953.
Your date of birth alone determines which pension scheme you qualify for, and once assigned, you cannot switch between the two.
Weekly and Annual State Pension Rates
The payment gap between the two schemes is clear.
| Pension Type | Weekly Rate | Annual Rate |
|---|---|---|
| Basic State Pension | £176.45 | £9,175.40 |
| New State Pension | £230.25 | £11,973.00 |
| Annual Difference | £2,797.60 |
- Pensioners on the basic scheme receive up to £176.45 per week, or £9,175 per year.
- Those on the new scheme can get £230.25 per week, amounting to £11,973 per year.
- The result: a difference of £2,797.60 annually.
National Insurance (NI) Requirements
The amount of State Pension you receive depends on your National Insurance (NI) record.
- Basic State Pension:
- Full amount usually requires 30 qualifying years.
- Those born before 1945 often needed up to 44 years (men) or 39 years (women).
- New State Pension:
- Requires at least 10 qualifying years to receive any payment.
- Full entitlement usually requires 35 years of contributions.
If you fall short of these requirements, your weekly pension will be reduced.
Uprating Through the Triple Lock
Both pensions are protected by the triple lock system, which guarantees an annual rise in April by the highest of:
- Consumer Price Index (CPI) inflation
- Average wage growth
- 2.5%
In April 2025, pension rates rose as follows:
- Basic State Pension: From £169.50 to £176.45 per week – an increase worth around £360 per year.
- New State Pension: From £221.20 to £230.25 per week – an increase of about £470 per year.
Even though both pensions rise each year, the difference between the two schemes remains, leaving older pensioners permanently worse off.
How Many Pensioners Are Affected?
Millions of pensioners across the UK are impacted. Older retirees who fall under the basic pension rules make up the majority of current claimants. This means a huge number of people are living on thousands of pounds less each year compared to those who qualify for the new pension.
Why Older Pensioners Are Missing Out
The issue comes down to timing:
- Pensioners who retired before the introduction of the new State Pension system are locked into the old structure.
- Their weekly payments are lower, and while they do rise with the triple lock, they can never reach the higher level of the new pension.
- This means older retirees are at a financial disadvantage, even if they have paid a lifetime of National Insurance contributions.
Financial Consequences
This shortfall can have a serious impact, particularly during a cost-of-living crisis:
- Reduced disposable income: An annual loss of nearly £2,800 can affect daily living standards.
- Budget pressures: Pensioners may struggle with rising bills, food, and energy costs.
- Fairness debate: Many feel it is unfair that birthdate alone determines whether they receive the higher pension rate.
The DWP’s State Pension rules mean that older pensioners are losing out on up to £2,797 per year compared to younger retirees.
Men born before April 1951 and women born before April 1953 are permanently tied to the basic State Pension, which offers significantly less income than the newer system.
While both pensions benefit from annual triple lock increases, the gap remains—and with living costs rising, the difference is more significant than ever. This issue continues to highlight questions of fairness, financial planning, and how best to support the UK’s oldest pensioners in retirement.
FAQs
Why are some pensioners losing £2,797 each year?
Because men born before April 1951 and women before April 1953 only qualify for the basic State Pension, which pays much less than the new State Pension.
Can older pensioners move to the new State Pension system?
No. Eligibility is fixed based on date of birth. However, pensioners can sometimes increase their payments by making voluntary NI contributions or deferring their pension.
Does the triple lock reduce the gap between pensions?
No. Although both pensions rise each year, the new State Pension increases by more in cash terms, meaning the gap of nearly £2,800 remains in place.