New pension rates for next year have been confirmed
The old state pension is worth less.
New pension rates have been confirmed for 2026/27, but some retirees will get lower regular payments than others.
There are two types of state pension in the UK, the old basic version and the new full state pension.
Older people who retired before April 2016 are still on the older version.
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These claimants have been told they will get a £440 rise to their state pension from next April.
But younger retirees on the new pension will get a £575 uplift – £135 more.
The new pension is already worth around £3,000 more a year than the older version.
And the new version increases by more than the old one each year under the triple lock.
But it doesn’t necessarily mean older households are worse off, though some might be.
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These people receive other top-up payments to boost their monthly incomes.
Men born before April 1951 and women before April 1953 receive the basic state pension.
The new pension is part of a simplified system, as the older version is gradually phased out as more people retire each year.
Eventually everyone will be on the new version under a single payment system.
New rates for next year have been determined by the triple lock.
The policy ensures the state pension increases each year in line with whatever is highest out of inflation, wage growth and 2.5%.