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There are two different state pensions in the UK, and those approaching retirement age might be unclear about which one they are entitled to. There have been several changes to the state pension, pension credit and even the state pension age over the last few years. As life expectancy increases and Brits are living longer, the state pension age is gradually increasing to 67 over the next year, with provisions for further increases down the line.

However, payments have also changed. There are two state pensions, which are dished out depending on the age of a person. Both were increased this month thanks to the triple lock. There is the basic state pension and the new state pension. Knowing which one you will be receiving when you reach retirement age is important for planning ahead. Here is a breakdown of the two payments and why they both exist.

The two existing state pensions are:

• The basic state pension
• The new state pension

The new rate is now worth £241.30 per week, and the old basic state pension is £184.90 per week. For state pensioners, that is quite a noticeable difference: £56.40, to be exact.

Those who are entitled to just the basic state pension payment have already reached state pension age. It only applies to people who reached the qualifying age before April 6, 2016.

Plus, recipients must have at least 30 years of national insurance contributions to receive the full payment.

Those who reached state pension age on or after April 6, 2016, receive the new state pension. Claimants have to have made at least 10 years of National Insurance contributions, with amounts varying depending on their National Insurance contributions during their working life.

Essentially, the new state pension was introduced to simplify the system, which was seen as rather complicated beforehand. Before that, there were extra payments people could claim depending on their contributions.

The new rules came in on April 6, 2016. Therefore, those who reached state pension age before then were paid under the old rules.

The new system was announced in 2014 to create a simpler and fairer way for people to receive the state pension. It was also designed to help people plan better, as retirees often didn't know how much they would get until they reached state pension age.