The new State Pension
In 2016 there were a number of changes made to the State Pension.
What is the new State Pension?
The new State Pension is a regular payment from Government that most people can claim in later life.
You can claim the new State Pension at State Pension age if you have at least 10 years National Insurance contributions and are:
- a man born on or after 6 April 1951
- a woman born on or after 6 April 1953
If you were born before these dates you will get the basic State Pension instead.
When can I claim my new State Pension?
The earliest you can get the basic State Pension is when you reach State Pension age.
Check your State Pension age
Use the Government's State Pension calculator to find out your State Pension age.
Can I claim my State Pension and keep working?
Yes, you can. However, here are some things you should bear in mind:
- Any money you earn won’t affect your State Pension, but it may affect your entitlement to other benefits such as Pension Credit, Housing Benefit and Council Tax Support.
- Be aware that State Pension is taxable, so when added to your earnings it may put you into a higher tax band.
- When you reach State Pension age, you won’t have to pay National Insurance anymore, even if you keep on working.
How much State Pension will I get?
The full rate of the new State Pension will be £179.60 per week (in 2020/21) but what you will get could be more or less, depending on your National Insurance (NI) record.
You can check your how much State Pension you could get on the government website or, you can request a paper statement if you prefer.
How is my pension amount worked out?
If you have already built up NI contributions under the pre-2016 system, you’ll be given a ‘starting amount’. This will be whichever of the following that’s higher:
- Either the amount you would have received under the pre-2016 system including basic and additional pension
- Or the amount you would get if the new State Pension had been in place at the start of your working life.
If you’re 'starting amount' is more than the full amount of the new State Pension (see above section), any amount over that level will be protected and paid on top of the full amount when you start to claim the new State Pension.
If your starting amount is less than the full amount of the new State Pension you may be able to build up a higher level of new State Pension through contributions and credits you make between 6 April 2016 and when you reach State Pension age.
So, your State Pension amount will be the higher starting amount figure plus the value of any qualifying years you add from 6 April 2016 onwards, up to the full rate of the new State Pension. The Check your State Pension service will calculate this for you.
What happens if I was in a ‘contracted out’ scheme?
When working out the ‘starting amount’ for your State Pension, a deduction will be made from both calculations if you were in a ‘contracted out’ personal or workplace pension scheme – for example, if you have been a member of a public sector pension.
The deduction is made because in this case normally you will have paid NI contributions at a lower rate because you were paying into a contracted out pension or some of your NI contributions were paid towards your private pension instead of additional State Pension.
What happens if I made no NI contributions before 6 April 2016?
Your State Pension is calculated entirely under new State Pension rules. You must usually have at least 10 qualifying years in your NI record to get the new State Pension.
Your new State Pension is more likely to be calculated in this way if you're born after the year 2000 or became a resident of the UK after 2015.
If you have:
- 35 years or more of NI contributions, you will get the full amount
- between 10 and 34 years of contributions, you will receive a proportion of the pension
- less than 10 years of NI contributions, you aren’t usually eligible for the new State Pension.
Can I use my partner’s contributions?
The State Pension is based on your own contributions and in general you will not be able to claim on your spouse or civil partner’s contributions at retirement or if you are widowed or divorced. However, if you're widowed you may be able to inherit part of your partner’s additional State Pension already built up.
If you are a woman who paid the reduced rate ‘married woman’s contributions’, you may be able to use these contributions towards the State Pension.
Can I increase my State Pension?
If you’re not on course to get a full State Pension, there may be some things you can do to help boost your pension.
If you don’t claim the State Pension straight away
You don’t have to claim your State Pension when you reach State Pension age. This is known as deferring, and could mean that you get extra State Pension when you do claim.
How much extra you get will depend on how long you defer claiming it. The State Pension increases by 1% for every 9 weeks you put off claiming it, or around 5.8% for each full year. This may not apply to you if you get certain benefits.
If you’re a carer
If you’re a carer and don’t work, this could affect your NI record and impact your State Pension amount. If you care for someone at least 20 hours per week, you could get Carer’s Credit to help maintain your NI record.
If you get Carer’s Allowance, you automatically receive Carer’s Credit. If you aren’t eligible for Carer’s Allowance you could still get Carer’s Credit.
If you live abroad or used to
If you live abroad or used to, you may have a gap in your NI record which could affect the amount of State Pension you’ll get.
You may be able to get a pension from the country you live/ lived in. Contact the department responsible for State Pensions in that country. If the country is in the European Economic Area or Switzerland, then the DWP may be able to help you contact them.
If you reach State Pension age after 6 April 2016, you might be able to use the time you worked abroad to make up some of the qualifying years that you need to get the new State Pension. This depends on the country you lived in though.
If you have gaps in your NI record
If you have gaps in your record and want to boost your State Pension, you could make voluntary NI contributions. How much these are and if you are eligible will depend on your individual circumstances.
How much are you saving for retirement?
Use the pension calculator to work out how much money you'll need in retirement, and how much retirement income you can expect.
How do I claim my State Pension?
You won’t normally receive your State Pension automatically. To make a claim:
- You should get a letter from the Pension Service no later than 2 months before you reach State Pension age. If you don’t, you can still make a claim. If you don't receive a letter, give the Pension Service a call on 0800 731 7898 (textphone: 0800 731 7339).
- You can claim your pension online, over the phone or by post. You will need to provide your National Insurance number when you make a claim and you may need to provide evidence of your date of birth.
You can claim your State Pension online 24 hours a day, 7 days a week. The service is safe and secure and there is an online helpdesk on 0800 169 0154 (textphone: 0800 169 0254) to help you through the process if you have any difficulty.
To claim over the phone, call the Pension Service claim line on 0800 731 7898 (textphone: 0800 731 7339). Phone lines are open Monday to Friday, 8am to 6pm (except public holidays).
You can also fill in a claim form and return it by post. You can download the forms from GOV.UK
What should I do next?
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