Fury as old state pension will pay £2,500 LESS than new state pension from April

There are two State Pensions, and which one you get depends on when you retired. The difference between what the two pay is huge and getting wider.

The new State Pension pays a maximum £9,627.80 a year to those who retired after April 5, 2016.

If inflation hits 10 percent in September, as anticipated, and Chancellor Rishi Sunak reinstates the triple lock increase as promised, this could rise to £10,590 a year.

Those who retired before April 6, 2016, receive the old basic State Pension. This currently pays a maximum £7,376.20 a year, which a 10 percent increase will lift to £8,114.

That’s an incredible £2,476 less pension income a year – almost £2,500.

Express readers feel they are being victimised for falling on the wrong side of the arbitrary cut-off point, including reader GrahamMJ.

He retired in September 2015, seven months before the new State Pension was introduced. “I contributed for as long and as much as those who now get the higher rate. Yes, I’m annoyed by all this and it just isn’t fair.”

Many readers are angry because they had to make MORE qualifying National Insurance contributions during their working lifetimes only to get less pension.

Originally, men needed to make 44 years and women 39 years to get the maximum old State Pension, although this was cut to 30 from 2010.

To get the new State Pension requires 35 years of NI contributions.

Reader Rinkaiso wrote: “Us older folk paid in for longer yet we get a reduced rate.”

Many found this unfair after decades of working, including reader oak who wrote: “I worked from 15 to 60. Why should I should I receive less pension?”

Some who retired on the new State Pension acknowledged the basic unfairness, including 1down1across, who wrote: “I get the new pension but it’s damned unfair to the lower pension recipients.

“They still have to pay the same price as the new pensions for food, petrol, gas, electricity, taxes. Disgraceful!”

READ MORE: State pension may hit £10,600 yet old state pension will pay just £8k

Another reader, Chico7, who gets just £139 a week, said: “There should NOT be two layers of pension payments – we all have the same bills to pay.”

Both the old and new State Pension increase by the same percentage each year, but the actual amount is different because the old State Pension has a lower starting point.

As Chico7 pointed out: “The differential will grow every year. Shocking.”

Yet there were also dissenting voices. Many readers pointed out that today’s retirees cannot claim the new State Pension until age 66, while the old State Pension was available from 65 for men, or 60 for women.

By claiming earlier, they will get more overall, argued reader Flintstone. “Retiring at 60 or 68? You never make that up.”

DON’T MISS:
Rage as Brits stuck in airport queue while EU travellers fly through [LATEST]
Brian May brutally snubbed by Queen after Jubilee performance [REVEAL]
‘Put handbrake on!’ One of world’s biggest cruise liners crashes [INSIGHT]

Others pointed out that many who retire on the old State Pension will get additional pension on top, such as Serps and S2P, that are not available under the new single-tier pension.

CraftyKitten said the old State pension with maximum SERPS/SP2 could pay as much as £310 per week, against £185.15 on the new State Pension.

“The ultimate aim of the new single-tier pension was always to save money, not to dish out more to post-2016 pensioners.”

CraftyKitten added: “Just because the chap down the road gets a few bob more than you doesn’t necessarily mean ‘unfair’.”

Yet this cut little ice with others, who feel ignored.

Reader Scrumbunctious said: “What the government has cynically calculated is that people like myself, at 76, receiving the old pension are dying at the rate of hundreds a day, so their lost votes are a problem which is disappearing.”

The unfairness rankles. As onceabrit put it: “The UK is the only country in the world that discriminates against its oldest citizens.”