Skydancer
I don't understand why there are 2 tiers of pension. Why isn't everyone getting the new state pension? Why is it assumed that the new amount is needed now and yet it's less for other people.
Because the "old" pension comprises two parts: a Basic State Pension and Additional State Pension paid for with contributions to SERPS and the Second State Pension. Under this, someone can receive (at current rates) Basic State Pension of £156.20 plus Additional State Pension of up to £204.85 a total of 361.05.
Under the New State Pension the maximum one can receive is £203.85. There is no longer the ability to contribute towards an Additional State Pension.
Also, under the New State Pension, there is no ability to inherit any part of a late husband’ basic pension, only 50% of his graduated and Additional State Pension.
There are transitional rules for people whose pension age means they fall within the New Station system but contributed towards an Additional State Pension and would have been better off under the old system. They have what is called a Protected Payment added to their New State Pension.