How State Pension Changes in 2024 Impact Your Retirement Plans

State pension changes 2024

The biggest news was the 8.5% increase to state pension payments from April 2024. Thanks to the triple lock – which guarantees pensions rise by whichever is highest of inflation, average wage growth, or 2.5% – pensioners on the new state pension received an increase of up to £221.20 weekly, up from £203.85 – about £900 extra per year. This increased a further 4.1% to £230.25 in April 2025.

The state pension age is still going up to 67 between 2026 and 2028. However, the decision around when it might hit 68 has been postponed, leaving lots of people in their 40s and 50s wondering exactly when they'll get to claim. This complicates planning ahead but shows why keeping up with state pension changes is so important.

How these changes affect you

If you're already retired, the recent increases have likely helped with bills, though perhaps not as much as hoped with inflation affecting everyday expenses like food, energy, and housing.

Those nearing retirement face tough choices. You might need to work longer than expected or adjust your savings plan. Many people have had to rethink when they can afford to stop working. The changes to the retirement landscape means you’ll need to be flexible with your exit strategy from the workforce.

Younger workers should expect the state pension to make up a smaller part of their retirement income compared to their parents' generation. Workplace and private pensions will need to do more heavy lifting for future retirees, so starting early and contributing consistently becomes even more important.

What you should do about it

First, check your National Insurance record online. You need 35 qualifying years for the full state pension, and many people have gaps they don't know about. If you find gaps, think about making voluntary contributions – paying a few hundred pounds now could mean thousands more in pension over your retirement years. 

Review your retirement timeline, too. If you planned to retire at 66 but now need to wait until 67, that's another year to either work or fund from savings. 

Consider building multiple income streams for your retirement years rather than relying too heavily on any single source. 

Looking ahead

The state pension changes in 2024 are part of ongoing adjustments to the UK system, so keep in mind that future changes are likely. As the government balances pension costs with an aging population, what seems certain now might shift again in the coming years.

With some adjustments to your retirement strategy, you can stay on track despite these shifts in state pension policy. If you’d like some support in planning your retirement, get in touch and we can talk you through your options.