Not everyone will get the same amounts under the pension system
Rachel Reeves has confirmed pension changes.
Pension increases for over-65s have been confirmed by the Government.
Seniors can expect hundreds of pounds extra to drop into bank accounts over the next year – but not everyone will get the same amount.
That’s because there are two versions of the state pension.
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It all depends how old you are.
Men born before April 1951 and women before April 1953 receive the basic state pension.
Anyone who has reached retirement age since 2016 is on the new full pension.
New rates for 2026/27 have been set out by Chancellor Rachel Reeves.
The full pension is going up by £575 to £12,547 a year.
The increase for older seniors on the basic pension will be smaller at £440, taking the total to £9,615.
These rates are determined by the state pension triple lock, which widens the gap between the two amounts each year.
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Older retirees may get separate top-up payments, though critics point out the system is not always fair for everyone.
The new rates will come into effect from the start of April.
Latest payment increases come amid growing discussion over the long-term future of the triple lock.
It ensures the state pension rises to match whatever is highest out of inflation, wage growth or 2.5% each year.
Pension experts at Spencer Churchill Claims Advice said: “This increase will be very welcome for millions of pensioners who are finding it increasingly difficult to keep up with rising living costs.
“However, the policy is becoming significantly more expensive for the Government every year.
“The triple lock now costs far more than originally forecast.
“Analysis from the Office for Budget Responsibility has highlighted that the triple lock is now costing around three times more than expected when it was introduced.”