Millions of pensioners are set for a boost next year
Pensions will be going up from April.
Details of payment increases for older pensioners who retired before 2016 have been confirmed.
Men born before April 1951 and women born before April 1953 are paid the older basic state pension.
It is currently worth £9,175 a year and is set to rise by £440 from next April.
READ MORE: Rachel Reeves ‘to confirm’ £575 increase for state pensioners
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The amount has been set by the Government’s triple lock policy.
This ensures the state pension increases each year to match whatever is highest out of inflation, wage growth and 2.5%.
Latest figures show wages are the highest of those numbers at 4.8%.
A two-pension system exists in the UK.
If you retired after April 2016 you will receive the new full state pension, a single payment worth almost £12,000 a year.
These pensioners are set for a bigger rise of £575.
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However, older pensioners on the basic state pension receive additional top-up payments so are not necessarily worse off, though some might be.
This older pension is gradually being phased out as claimants get older with each passing year.
Everyone who retires now is put onto the new version of the state pension.
While the latest hike to pensions will be welcomed, frozen tax bands mean millions more retirees will be pushed towards paying income tax.
The personal allowance threshold at which someone must starting paying is £12,570.
The new pension will come just short of this next year and is due to pass the threshold in 2027.