Millions of UK pensioners born before 1953 could be losing £2,797 each year in State Pension payments compared to younger retirees.
This growing disparity stems from the two-tier pension system managed by the Department for Work and Pensions (DWP) – the basic State Pension and the new State Pension.
Those affected are mostly men born before April 6, 1951, and women born before April 6, 1953, who receive payments under the basic State Pension scheme.
In contrast, people retiring after these dates receive the new State Pension, which offers higher weekly payments.
Basic vs New State Pension: What’s the Difference?
The UK state pension system was reformed in April 2016. Since then, individuals reaching State Pension age have been placed on the new scheme, while those who retired before continue on the older system.
Here’s a breakdown of the two:
| Pension Scheme | Eligibility | Weekly Payment (2024) | Annual Total |
|---|---|---|---|
| Basic State Pension | Men born before 6 April 1951 Women before 6 April 1953 | £176.45 | £9,175.40 |
| New State Pension | Anyone reaching pension age after 6 April 2016 | £230.25 | £11,973.00 |
| Difference | £53.80 | £2,797.60 |
As seen above, older pensioners receive significantly less annually – despite rising living costs and growing financial pressures.
What Is the Additional State Pension?
To balance this gap, the basic State Pension can be topped up through the Additional State Pension, also known as:
- SERPS (State Earnings-Related Pension Scheme)
- S2P (State Second Pension)
- Graduated Retirement Benefit
But not everyone qualifies. The Additional State Pension applies only if you:
- Were not contracted out during your employment
- Reached pension age before 6 April 2016
- Have sufficient National Insurance contributions
Unlike the new State Pension, there is no fixed amount for the Additional Pension. It varies based on your work history, earnings, and whether you topped up your contributions.
Key Facts About the Additional State Pension
- Automatic Eligibility: If you’re eligible, the DWP automatically adds it to your basic State Pension.
- No Separate Application: You don’t need to apply for it separately.
- Variable Amount: The payment differs for everyone depending on contribution history.
- Contracted-Out Periods: You may lose eligibility for certain years if your workplace scheme opted you out.
Why Are Pensioners Born Before 1953 Affected?
The state pension reform of 2016 was meant to simplify the system and make it fairer. However, it left behind a generation of retirees on a lower base rate, relying on complex and inconsistent top-up schemes.
Despite a Triple Lock increase of 4.1% this year, those on the basic State Pension are still £53.80 worse off per week than their newer counterparts.
In many cases, people don’t even realize they’re eligible for Additional State Pension benefits, or they are underpaid due to past contracted-out arrangements.
Are You Losing Out on £2,797 a Year?
To find out, ask yourself:
- Were you born before April 6, 1953?
- Are you receiving the basic State Pension?
- Do you know how much Additional Pension you’re getting (if any)?
If you’re unsure, it’s essential to:
- Check your pension statement
- Contact the DWP for clarification
- Verify if any years were contracted out
How to Make Sure You’re Getting What You Deserve
- Request a State Pension Forecast
You can do this online or through the post to see your current entitlements. - Review National Insurance Record
Check if you’ve missed contributions or were contracted out during employment. - Speak to the Pension Service
If you suspect an underpayment or missing benefit, get in touch with the DWP Pension Service directly.
The current pension inequality faced by those born before 1953 highlights a generational gap in the UK’s retirement system.
While the basic State Pension was supplemented with additional schemes, it still falls short of what the new State Pension offers today.
If you were born before April 1953, you might be missing out on up to £2,797 annually – not by mistake, but by design.
However, checking your Additional State Pension entitlement could help bridge the gap. Take action today to secure your rightful income and avoid losing money that could support your retirement.
FAQs
How do I know if I’m eligible for the Additional State Pension?
If you’re a man born before April 6, 1951, or a woman born before April 6, 1953, and you reached retirement age before April 6, 2016, you may qualify. The amount depends on your work and contribution history.
Can I claim the new State Pension if I was born before 1953?
No. Those who reached State Pension age before April 6, 2016, remain on the basic scheme, even if it pays less than the new system.
What can I do if I think I’ve been underpaid?
You should contact the DWP Pension Service, request a pension forecast, and check your National Insurance contribution history for errors or gaps.