What does the state pension look like?

What’s it worth?

How do I qualify for this pension?
New state pension from 6th April 2016

The new single-tier state pension scheme aims to simplify pensions and make them fairer for everyone.

This new scheme applies to men born on or after 6 April 1951 and women born on or after 6 April 1953 who reach the state pension age on or after 6 April 2016.

 

The full new state pension is £230.25 a week in the 2025/26 tax year.

The amount you get can be lower or higher depending on your National Insurance record. It will only be higher if you have over a certain amount of additional state pension.

 

You need 10 qualifying years on your National Insurance record to get anything, but will need 35 qualifying years to get the full amount.
State pension before 6th April 2016

A two-tier scheme, made up of the basic state pension and, if you’ve been paying into it, an additional state pension.

The two-tier scheme applies to men born before 6 April 1951 and women born before 6 April 1953.

You will have already claimed your basic state pension unless you delayed (deferred) your state pension.

 

Tier 1: The full basic state pension. The maximum you can get is £176.45 a week in the 2025/26 tax year.

 

You will get the full basic state pension if you paid or were credited with 30 years of National Insurance contributions.

You may need more years of National Insurance contributions if you are a man born before 1945 or a woman born before 1950.

Your basic state pension will be less if you have fewer than the full number of qualifying years of National Insurance.

Tier 2: The additional state pension is not a fixed amount as it depends on how many years you paid National Insurance for, your earnings, whether you’ve contracted out of the scheme and whether you topped up your basic state pension.

On top of the basic state pension, you might also get an additional state pension.

If you contracted out of the additional state pension scheme at any point, you won’t qualify for the additional state pension for the period you contracted out. This is because the National Insurance contributions that you would have paid into the additional state pension will have gone into your company scheme or personal pension instead.

When do I get the state pension?

You become eligible for the state pension when you reach the state pension age. You can, if you wish, delay taking your state pension and take it at a later date. This might give you a bigger amount when you actually start claiming it.

If you reached state pension age before 6 April 2016 you need to put off claiming your state pension for at least five weeks. After that, your pension will increase by 1% for every five weeks you delay, which amounts to 10.4% a year. For more information visit GOV.UK.

If you reach state pension age on or after 6 April 2016 you need to delay taking your pension for at least nine weeks to get a 1% increase for every nine weeks you delay, amounting to just under 5.8% a year. For more information visit GOV.UK.

You can get a one-off lump sum payment if you defer claiming your state pension for at least 12 months in a row. The payment will include interest of 2% above the Bank of England base rate. You will be taxed at your current rate on your lump sum payment.

You can find out more about the state pension at GOV.UKand MoneyHelper. MoneyHelper is here to make your money and pension choices clearer. Here to put you in control with impartial help that’s on your side, backed by government and free to use.

 

How do I apply for the state pension?

The state pension isn’t automatically sent to you – you have to claim it. You should get a letter no later than 2 months before you reach your state pension age, telling you what to do. If you have not received an invitation letter, but are within 3 months of reaching your state pension age, you can still make a claim. There are four ways to claim.

How to claim is different if you claim from Northern Ireland.

 

How much will my state pension be?

The amount you’ll get will vary depending on which scheme you’re eligible for and your National Insurance record. You can find out what you could get at GOV.UK.

You can also contact the Future Pension Centre with questions about the state pension or to ask for a forecast. See GOV.UK.

Or by filling in a BR19 application form and posting it in.

 

What else do I need to consider?

Will the state pension alone give you the retirement income you’re hoping for? If not, it might be time to think about securing a more comfortable retirement by either joining your company’s pension scheme or making your own arrangements. Whatever you decide to do, we recommend that you contact Pension Wise or speak to a financial adviser before you make any decisions about your pension savings. The Pension Wise service is now part of MoneyHelper. The easy way to get free help for all your pension and money choices.

 

 

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