Revealed: Find out in case your neighbours are on a greater state pension than you. We reveal the everyday payout in EVERY space of the UK – and one spot will get £42k greater than others simply 8 miles away

After a lifetime of hard work and paying taxes, the state pension offers a well-earned financial ­cushion that most people depend on in retirement. But far from ­paying out a flat rate, there is a huge disparity in the amount pensioners receive across different regions of the UK.

It has never been a secret that the state ­pension pays out different amounts, but the sheer disparity between various postcodes might surprise you.

Our analysis of official state pension records has found pensioners in some towns on average receive thousands more each year than their neighbours, often only a few miles away.

Pensioners in Newham, London, receive £2,105 a year less on average than those in the City of London. Over a 20-year retirement, they’ll end up getting a staggering £42,000 less in state pension income than their ­neighbours only eight miles away.

Today, we reveal the ten towns across Britain where pensioners receive the highest and lowest state pension income.

So how does yours stack up compared to the average in your town?

And why are some areas so much better off than others? We ask experts what it is about ­different parts of Britain that causes such large regional variations.

Why the state pension varies

There are two types of state pension so the amount you receive in retirement will depend on your age and how many years you made National Insurance (NI) contributions.

Anyone who reached state pension age before 2016 receives the old state pension, also known as the basic state pension, which pays up to £176.45 a week or £9,175.40 a year. You need 30 years of NI contributions to get the full amount.

Younger pensioners who have reached pension age since 2016 are on the new state pension and can get up to £230.25 a week – £11,973 a year.

They need 35 years of NI contributions for the full amount.

The new state pension is advertised as a flat rate that at first glance appears more generous, but Government data shows older pensioners actually receive more than their younger counterparts.

Older retirees in their 80s and 90s, who are on the basic version, typically receive the largest state pensions.

This is because anyone on the old state pension was also permitted to build up entitlement to extra state pension income.

Those who did so now receive this extra pension, known as ‘Serps’ (state earnings-related pension scheme), on top of their basic payment.

Some will receive a few pounds extra. But others could be receiving as much as the full basic pension of £176.45 plus a maximum Serps pension of £222.10 a week.

Richer areas get more

The ability to boost the old state pension via your earnings means that people in wealthier parts of the UK receive higher average state pensions.

Pensioners living in the heart of the capital in the City of London receive an average of £12,101 in state pension income, £2,105 a year more than those in the poorest areas.

Those in leafy commuter belt towns such as St Albans and ­Tandridge, Surrey, also receive about £12,000 on average.

The top ten areas receiving the largest state pensions are all located in the South of England, with many such as Hertfordshire, Surrey Heath and Mole Valley bordering the M25.

Outside of the South and East of England, the area with the next largest state pension average is Aberdeen, Scotland, where pensioners receive £228.44 a week (£11,879 a year). This is followed by Harborough, south-west of Leicester in the East Midlands, where pensioners get £228.39 a week (£11,876 a year),

Workers in wealthier areas are more likely to have complete work histories and have contributed to Serps, thereby boosting their pot.

Pension and retirement policy expert Tom McPhail explains that the Serps system mainly benefited higher earners. He says: ‘The two-tier state pension for people who had a full working career could result in really quite generous state pensions.

‘Now the new state pension is less generous than those combined double-tier state pensions for those on higher salaries, but more generous to low earners.’

However, higher earnings don’t always mean a higher state pension. Millions of workers paid into workplace pension schemes that were ‘contracted out’. This means they contributed less to National Insurance, and the funds were redirected into a workplace pension scheme instead.

So they receive a smaller sum from the state, but should get a larger sum from their workplace pensions. Overall, they should be no worse off and some may be much better off thanks to the growth of their company pension plans over time.

London falling behind

While London residents enjoy many of the UK’s most generous state pensions, the capital is home to many of the poorest paid boroughs, too.

Retirees in Newham, east London, receive an average of just £9,996 in state pension income each year, while those in neighbouring Tower Hamlets, the inner London borough home to Whitechapel and Bethnal Green, get £10,175 a year.

The amount of state pension you receive is closely linked to your career. If you have fewer than 35 years of National Insurance ­contributions, you won’t receive the full amount. You receive 1/35th of the full amount for every year that you pay in.

Under the old basic pension, higher earners could boost this by paying additional Serps. But lower-paid workers and those not in work missed out, leaving those in deprived areas relying almost entirely on the basic pension.

Pensioners living in some of the poorest boroughs in London were left behind under the old state pension system.

Unemployment doesn’t stop you from building your entitlement to the state pension. You can still bank NI credits while claiming ­Jobseeker’s Allowance, Universal Credit or Child Benefit. However, under the old system, credits only counted towards the basic state pension, not the additional earnings-related slice. Sir Steve Webb, a former pensions minister and now ­partner at consultancy LCP, says: ‘In areas of high unemployment and low wages, other things being equal, you will see lower state ­pensions.’

He adds that some of the differences may also be due to migration. ‘In parts of the country where there’s a higher than average proportion of people who’ve come into the UK during their working life, they may have lower state pensions as it’s a contributory ­system; they won’t have achieved the full 35 years of NI contributions. And particularly women from some Asian communities, who’ve had very traditional roles and never worked outside the house, will have low state pensions.’

But this vast gap in payments should slowly be phased out. Younger pensioners under the new state pension will receive the same amount regardless of their salary.

Unlike the old system, the new state pension doesn’t penalise low earners. Whatever your earnings, as long as you have banked 35 years of National Insurance contributions, you’ll receive the full rate of £230.25 a week or £11,973 a year.

Outside London, the areas receiving the smallest average state pension include Leicester, where pensioners get £10,902 a year, Manchester at £10,931 a year and Slough on just over £11,000.

The gender divide

As well as a regional divide, there has always been a pension gender gap, with a vast gulf between what men and women receive.

Older women tend to receive the lowest state pension compared to their male counterparts.

This is because women are more likely to have gaps in their NI contribution record for periods they spent out of work looking after children or elderly relatives while their husband continued working.

A lower income throughout their working lives has also contributed to lower pensions for those on the old state pension under the legacy rules, because the top-ups were calculated based on your earnings.

It means that, although stay-at-home mums could bank NI credits while claiming Child Benefit for a young child, they still missed out on an extra top-up from Serps during their career breaks.

Although the rules changed in 2016, introducing a flat rate and doing away with the top-up system which favoured men, it was too late for women who had already retired.

Women in Newham, London, receive the worst state pension, at £188.09 a week (£9,781 a year), followed by those in Tower Hamlets, Hackney and Brent, all of which are in London. Meanwhile, older men benefited from the old state pension rules, which were more generous to higher earners.

Men over the age of 90 living in Chelmsford, Essex, receive the very best state pension, with an average income of £14,577 a year.

In contrast, female pensioners between the ages of 75 and 79 living in Tower Hamlets are the poorest group, receiving just £8,929. That’s a gap of £5,648 each year and a staggering £113,000 less over a 20-year retirement.

However, the gender gap is starting to close for younger retirees. Sir Steve explains: ‘The new state pension, for those who retire after 2016, is based just on the number of years of National Insurance contributions and has nothing to do with wages.

‘A year claiming Child Benefit, or on Universal Credit, is just as good as a year in a well-paid job.’

How to boost it

If you aren’t retired yet, check to see how much you can expect from the state pension. If you are on track to receive less than the maximum, you can take action.

Check your forecast by contacting the Government’s Future Pension Centre on 0800 731 0175 if you are aged below 66. Or the Pension Service for those above pension age on 0800 731 7898. You can also access your forecast online at ­gov.uk/check-state-pension.

It will tell you the date you can start claiming your pension and give you a forecast of what you are currently set to receive.

You can also click through to see your full National Insurance record. This last option will show you how many qualifying years you have and any missing or incomplete years.

Make sure you have claimed credits for any years where you cared for children or relatives or were on benefits, such as ­Jobseeker’s Allowance.

You can find a full list of what qualifies for National Insurance credits at gov.uk/national-insurance-credits/eligibility.

You can also pay to fill any gaps by making voluntary contributions. But you can only do that if the missing NI contributions are in the past six years.

How much you will pay depends on the rate charged in those years. In 2025-26, the charge is £923 for the year.

It can make a huge difference to your retirement income to buy missing years.

Spending about £5,538 to fill in six missing years could secure you an extra £2,053 of inflation-linked state pension income for each year of retirement.

Another way you can boost your state pension is to delay when you start receiving it. It isn’t paid automatically when you hit state pension age – you have to claim it.

Do you get one of the largest or smallest state pensions? Write to us at [email protected]