State Pension
(Please note – this is for information only and does not constitute advice. This is a potentially complex area and for further information or to obtain a State Pension statement please visit the government website at https://www.gov.uk/browse/working/state-pension)
About the state pension
The State Pension is a regular payment from the government that you may claim once you reach State Pension age. Eligibility depends on your National Insurance (NI) record and requires a minimum number of paid or credited contributions.
State Pension Age
The State Pension age (SPA) for both men and women is currently 66. Under current legislation, it is set to increase to 67 between 2026 and 2028.
The law mandates that the State Pension age be reviewed at least once every five years, considering factors such as life expectancy. The government has previously announced plans to raise it further to 68, but implementing this would require new legislation to be passed by Parliament.
Claiming the State Pension
The State Pension is not paid automatically; you need to claim it. You should receive an invitation to apply several months before you reach State Pension age. You can submit your claim online, by phone, or by downloading and sending a paper form. Different procedures apply for claiming in Northern Ireland.
Payment Frequency
The State Pension is typically paid every four weeks in arrears, directly into your nominated bank or building society account.
Working beyond the State Pension age
You can receive your State Pension while still working. Your employment status does not impact your entitlement.
The State Pension may be taxable
The State Pension is considered taxable income. It is paid to you without tax being deducted upfront but counts towards your total income for the year. This can influence which income tax band you fall into. If you have other sources of income, such as a private pension or earnings from employment, HMRC will usually adjust your tax code to collect any tax owed on your State Pension.
Postponing the State Pension
You do not need to claim your State Pension immediately when you reach State Pension age. You can choose to delay (postpone) it. Doing so will increase your eventual weekly payment. The rate of increase depends on when you reached State Pension age, but for those reaching it now, the pension payment rises by 1% for every 9 weeks it is delayed.
Claiming the State Pension while living overseas
You can claim your State Pension while living abroad. However, your pension will only be uprated annually if you reside in the European Economic Area (EEA), Switzerland, or a country with a social security agreement with the UK. If you live outside these areas, your pension will generally be frozen at the rate it was when you first began claiming it.
Basic State Pension on Death
Rules regarding inheritance vary depending on which State Pension system you are under and your personal circumstances. For some, a surviving spouse or civil partner might be able to boost their own State Pension using the deceased’s National Insurance record.
There are currently two State Pension systems operating in parallel. Which one applies to you depends on when you reached State Pension age.
The State Pension for individuals reaching State Pension age prior to the 5th of April 2016 ('old' State Pension).
This summary applies to women born before 6 April 1953 and men born before 6 April 1951.
Maximum payment
For the 2025/2026 financial year, the full rate of the basic State Pension is £176.45 per week. This payment is increased each year by the highest of three measures: average wage growth, inflation (as measured by the CPI), or 2.5% — a policy known as the ‘triple lock’.
National Insurance Contribution record
To qualify for the full basic State Pension, you need 30 ‘qualifying years’ of National Insurance contributions (NICs) or credits. If you have fewer than 30 years, you will receive a proportional amount, calculated as 1/30th for each qualifying year.
Bridging the Contribution Gap
Gaps in your NI record can occur due to periods of low earnings, unemployment without claiming benefits, or living abroad. Depending on your age and situation, you might be able to make voluntary NICs to cover these gaps and boost your entitlement.
The new State Pension (for individuals reaching State Pension age after 5 April 2016)
This summary applies to women born on or after 6 April 1953 and men born on or after 6 April 1951.
Maximum payment
For the 2025/2026 financial year, the full new State Pension is £230.25 per week. This single-tier pension replaces the old system of a basic pension plus additional top-ups like SERPS and S2P. It is also protected by the ‘triple lock’.
National Insurance Contribution record
To receive any new State Pension, you need at least 10 qualifying years on your NI record. To get the full new State Pension, you require 35 qualifying years. If you have between 10 and 35 years, you will receive a proportional amount, calculated as 1/35th for each qualifying year.
Bridging the Contribution Gap
As with the previous system, if you have gaps in your NI record, you might be able to make voluntary NICs to boost the amount of State Pension you get, subject to certain deadlines.
National Insurance Contributions made before 6 April 2016
For those who worked before and after the 2016 change, a ‘starting amount’ was determined. This was the higher of either the amount you would have received under the old rules or the amount you would have received if the new State Pension had been in place throughout your entire working life. If this starting amount is less than the full new State Pension, you can add more qualifying years to increase it.
National Insurance contributions made after 6 April 2016
For each qualifying year you add to your NI record after 5 April 2016, you earn a further portion of the new State Pension until you reach the full amount or stop working. Anyone with fewer than 10 qualifying years in total will not be entitled to any State Pension.
Executive Pension Plan
Your retirement may be a long way off, but it’s never too early to start planning.
Long Term Care Planning
Long-term care planning is about taking measures to ensure you are equipped for any support in later life.
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