All the pension changes coming in 2025 - and they will affect you even if you've not retired yet
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There are key pension changes due to kick in from 2025 - and they will likely affect you even if you're not close to retirement age just yet. The state pension will rise in April but many pensioners are at risk of paying tax for the first time on their retirement cash. There is also a major deadline coming up where you need to check if you have enough National Insurance contributions, or risk not having enough state pension in retirement.
Meanwhile, the first firms will connect to the pensions dashboard and millions could get more support with their retirement funds going forward. But in not-so-good news, a review that was expected to implement changes to auto-enrolment have been delayed indefinitely.
The state pension is due to rise by 4.1% next April under the triple lock promise. The triple lock guarantees the state pension rises each April by the highest out of inflation (using the previous September inflation figure), wages (average growth between May and July) or 2.5% - whichever is highest. Wage growth will be used to determine the state pension increase. It means the full new state pension will rise from £221.20 to £230.30 a week, while the full basic state pension will go up from £169.50 to £176.45 a week.
There is a big deadline coming up for purchasing missing National Insurance years. Most people need 35 qualifying years on their National Insurance record to claim the full new state pension, and ten years to receive anything at all. This means if you have gaps in your record, you may not receive a full new state pension later in life. At the moment, you can purchase missing years dating back to 2006 - but after April 6 next year, you'll only be able to go back six tax years.
