UK State Pension Guide: Eligibility, Amounts & Claiming

What Is the State Pension?

The State Pension is a regular payment of retirement income from the UK government to eligible individuals once they reach State Pension age. It's funded by National Insurance contributions (NICs) made throughout your working life, not directly from general taxation, which means it’s an earned benefit that’s based on your NIC record.

The ‘new State Pension’ was introduced in April 2016 for people reaching State Pension age on or after that date, replacing the older, more complicated pension with a simpler format that has a single flat-rate payment for those with sufficient National Insurance contributions.

If you reached State Pension age before April 2016, you receive the old State Pension, which works differently and may include additional elements based on your earnings history and contracted-out arrangements.

If you haven’t retired yet (or you retired sometime between April 2016 and today) then you’ll get the new State Pension.

Why Does the State Pension Matter?

The State Pension provides a solid foundation of retirement income, with a guaranteed sum paid into your account every four weeks for the rest of your life after you retire.

Unlike Defined Contribution pensions, this amount isn’t affected by stock market performance or other market conditions, which means it’s income that is stable and predictable.

The State Pension also offers protection against inflation, because the amount you get increases each year in line with either inflation, average earnings, or 2.5%, whichever is highest. This is known as the ‘triple lock’.

How much is the State Pension?

The amount you receive depends on when you reach State Pension age and your history of National Insurance contributions, with different rules applying to the old and new systems.

New State Pension (post-April 2016)

The full new State Pension is £230.25 per week or £11,973 a year for the 2025-26 tax year. To receive the full amount, you’ll need 35 qualifying years of National Insurance contributions. If you have fewer qualifying years, then your pension amount is reduced proportionally, provided you have at least 10 qualifying years.

So as an example, if you have 20 qualifying years when you retire then the amount you would receive would be 20/35 (which equals 0.5714) multiplied by £11,973, which would equate to £6,841.37 a year.

Basic State Pension (pre-2016 retirees)

People who reached State Pension age before April 2016 receive the old State Pension rather than the new one.

The old one includes the Basic State Pension plus any Additional State Pension that they built up.

The full Basic State Pension is £176.45 per week for the 2025-26 tax year, and to qualify for that full amount you would need to have clocked up 30 qualifying years before you retired.

The Additional State Pension amount depends on your earnings history, your National Insurance Contributions, whether or not you contracted out of the scheme (which means you were contributing to a contracted-out workplace pension instead of the Additional State Pension), and whether or not you topped up your Basic State Pension.

Pension increases

The State Pension increases in value every year via a mechanism known as the ‘triple lock’, which means the amount it increases by will be the highest of these three things:

• An inflation (calculated using the UK’s Consumer Price Index)
• Average earnings growth
• 2.5%

This triple lock mechanism was introduced in 2010 and is designed to ensure that the State Pension maintains its purchasing power over time. The increases usually take effect in April each year, although they’re actually based on annual inflation and earnings growth data up to the previous September.

Who is eligible for the State Pension?

In order to be eligible for the State Pension you’ll need to have clocked up at least 10 qualifying years during the course of your career. The definition of a qualifying year is one in which you either:

• Made National Insurance Contributions (NICs)
• Made Voluntary NICs
• Received National Insurance Credits

National Insurance Contributions (NICs)

Any employee earning more than the Primary Threshold will automatically have NICs paid from their salary via the pay-as-you-earn (PAYE) system. These are known as ‘Class 1 NICs’.

The Primary Threshold is £242 a week (£1,048 a month) for the 2025-26 tax year.

Employees earning less than the Primary Threshold, but more than the Lower Earnings Limit, will not have NICs deducted but will be treated like they have paid NICs during that period for the State Pension calculation.

In the 2025-26 tax year the Lower Earnings Limit is £125 a week, which equates to £542 a month.

Employees earning less than the Lower Earnings Limit will not pay NICs but will also not be treated like they have paid NICs, which means they won’t clock up qualifying years unless they make voluntary contributions.

Known as Class 3 NICs, these voluntary contributions can help people with gaps in their National Insurance to get closer to the 35 qualifying years they’d need in order to qualify for a full State Pension.

Types of employment and NI impact

While full-time employees will usually pay Class 1 NICs via PAYE, self-employed people pay a different class of contributions (Class 4 NICs), and they do so annually via their self-assessment, instead of via monthly deductions from their pay packet.

It’s worth noting that some part-time employees also don’t have Class 1 NICs deducted from their pay, either because their income is below the Primary Threshold (in which case they’re treated as having paid Class 1 NICs even though they don’t), or because their income is below the Lower Earnings Limit (in which case NICs aren’t deducted but they also aren’t treated like they’ve paid NICs for State Pension purposes).

What if I have gaps in my NI record?

If you aren’t making National Insurance Contributions then the resulting gaps in your NIC record can reduce the size of your State Pension, but there are a couple of things that can help to plug those gaps.

Voluntary Contributions (Class 3): You can usually opt to pay voluntary National Insurance contributions to fill gaps in your record. Class 3 contributions cost £17.75 a week for the 2025-26 tax year, and can be paid to cover up to six years.

The cost of a full year of Voluntary Contributions equates to £923 at the current rate (£17.75 x 52 weeks), but considering each year of Voluntary Contributions will add £342.09 to your annual State Pension amount, you’ll only need to receive your State Pension for three years in order to recoup that cost.

National Insurance Credits: Some people automatically receive National Insurance Credits when they aren’t making NICs, in which case they won’t have to pay Voluntary Contributions to plug gaps in their NIC record.

The most common scenarios you might receive National Insurance Credits include:

• If you’re unemployed and claiming Jobseeker's Allowance or Universal Credit
• If you’re ill or disabled and claiming benefits for that illness or disability
• If you’re on maternity, paternity, or adoption leave
• If you’re caring for children under the age of 12 and are receiving Child Benefit
• If you’re caring for disabled adults for at least 20 hours per week and receiving Carer’s Allowance.

Credits are usually applied automatically, but it’s a good idea to double check your National Insurance record to ensure they've been correctly awarded.

How is the State Pension calculated?

The calculation for your State Pension will vary a little depending on whether you're on the new or old State Pension system, and for anyone on the old system there’s also additional complications if you were ever contracted out of the Additional State Pension.

New State Pension calculation

For the new State Pension, the calculation is relatively straightforward:

Your annual pension amount = (Your number of qualifying years ÷ 35) × £11,973

So as an example, if you had 20 qualifying years your annual State Pension would be (20/35) x £11,973 = £6,841.71.

Old State Pension calculation

The calculation for the basic component of the old State Pension is fairly straightforward too:

Your basic State Pension amount = (Your number of qualifying years ÷ 30) × £9,175.40

So if you have 20 qualifying years under the old State Pension system, your basic State Pension amount would be (20/30) x £9,175.40 = £6,116.93 a year.

The added complexity with the old system comes from the fact that some pensioners also get an ‘Additional State Pension’ amount on top of the basic State Pension, and there’s no fixed amount for that calculation.

If you’re on the old State Pension system, how much Additional State Pension you can get will depend on:

• Your record of National Insurance Contributions
• your earnings
• Whether you’ve contracted out of the Additional State Pension scheme
• Whether you topped up your basic State Pension (although it was only possible to top up between 12th October 2015 and 5th April 2017).

‘Contracted out’ means you and your employer paid reduced National Insurance Contributions, with the difference being paid into a workplace pension that replaces the additional pension income you would have received from the Additional State Pension.

It’s worth adding that the full New State Pension amount (£11,973) and the old Basic State Pension amount (£9,175.40) will both increase over time through the ‘Triple Lock’ mechanism.

The triple lock is intended to ensure that your State Pension amount doesn’t lose its purchasing power as inflation rises. To achieve this, your State Pension amount increases every year by the highest of the following three metrics:

• UK inflation (as measured by the CPI index)
• Average UK earnings growth
• 2.5%.

How does contracting out affect the calculation?

If you were in a contracted-out workplace pension, then your Additional State Pension will be reduced by a "Contracted-Out Pension Equivalent" (COPE) amount. This reflects the benefits you should receive from your workplace scheme to replace the Additional State Pension you gave up.

Your National Insurance Contributions will have been reduced to offset this reduced entitlement to Additional State Pension.

Essentially, if you were in a contracted-out workplace pension under the old State Pension system then you were building up your additional retirement income within that workplace pension, instead of through the Additional State Pension.

If you were ever contracted-out then your State Pension forecast shows your COPE amount separately, helping you understand how contracting out affects your entitlement and what benefits you should expect from workplace schemes to replace it.

How to boost your State Pension

There are a few things you can do that might help you to maximise your State Pension entitlement, from filling gaps in your contribution record to claiming NI credits that you might be entitled to.

Check your NI record

Regularly checking your National Insurance record can help you to identify any gaps (or even errors) in your record of NICs. You can access your record online through your Government Gateway account or by calling the National Insurance helpline.

Your NIC record shows each tax year's status, outlining whether you paid contributions, received credits, or have non-qualifying years that might affect your pension amount.

You should pay particular attention to any years when you were unemployed, self-employed with low profits, or living abroad, and consider whether you have enough working years left to plug those gaps. If you’re likely to retire before you reach the required number of qualifying years, then it might be worth thinking about voluntary contributions.

Fill NI gaps

Buying voluntary National Insurance contributions can be a highly cost-effective way to boost your State Pension. You can usually pay for the previous six tax years.

Consider paying voluntary contributions if:

• You have fewer than 35 qualifying years for the full new State Pension

AND

• You’re too close to retirement to plug those gaps through future years of employment.

You can use the government's online calculator to check whether paying voluntary contributions would increase your State Pension and whether it represents good value for money to make those voluntary topups.

H3: Receiving National Insurance credits

National Insurance credits are designed to help people who aren’t working to plug gaps in their National Insurance Contributions record.

You might be able to receive these credits if you’re:

• Unemployed and receiving Jobseeker’s Allowance or Universal Credit
• Disabled or on sick leave
• On maternity, paternity or adoption pay
• A parent or guardian registered for Child Benefit for a child who is under the age of 12
• A carer who is receiving Carer’s Allowance or Income Support
• Over 18 and attending a Jobcentre Plus-approved training course that lasts no longer than 1 year
• On jury service
• Married to or a civil partner of a member of the armed forces who is stationed overseas and you move abroad with them.

Depending on your circumstances, your National Insurance credits might be awarded automatically, or you might have to apply for them. You can find out more about the eligibility criteria and application process on the government’s NI credits website.

Is the State Pension taxable?

The State Pension is classed as taxable income, although it's not taxed at source like employment income. Instead, HMRC collects tax through other income sources or by sending tax bills directly if you don’t have other sources of income that you already pay tax on.

The State Pension counts towards your total income for tax purposes. Since the annual amount you receive with a full State Pension (£11,973) is less than the annual Personal Allowance (£12,570 for the 2025-26 tax year) you will only pay income tax if you have other sources of taxable income besides your State Pension.

If you have private pensions or continue working after claiming your State Pension, your private pension provider or your employer should adjust their tax deductions to account for your State Pension income, collecting any tax due on your total income.

[link to pension tax piece]

H2: How do you check your State Pension forecast?

Your State Pension forecast provides crucial information about your pension entitlement, helping you to plan for retirement and identify anything you might need to do before retirement to maximise your pension amount.

The forecast shows:

• Your current State Pension entitlement if you stopped contributing now
• Your forecast pension if you continue contributing until State Pension age
• How many qualifying years you have now, and how many more you need for the full State Pension
• Whether you can increase your pension amount by paying voluntary contributions.

Your forecast may also show a "COPE estimate", which is the amount your Additional State Pension is reduced by if you were ever contracted out.

You can get your forecast online through the government’s State Pension website.

When and how can you claim the State Pension?

Many people assume that they’ll begin receiving their State Pension automatically once they reach State Pension age, but that’s not correct - you need to apply to start receiving it.

The reason it isn’t automatic is that you can choose to defer your State Pension even after you’ve reached State Pension age if you wish.

Claiming Process

You’ll need to receive an ‘invitation code’ in the post in order to begin your State Pension claim process - in most cases you’ll receive an invitation letter with this code shortly before you reach retirement age.

If you’re 3 months away from State Pension age and you still haven’t received this letter then you can request an invitation code, which you should receive in the post within 5 days.

Once you have that code you can complete a short online State Pension application, which will ask for some basic personal information and bank account details for payments. You'll also need to provide proof of identity and may need to verify your National Insurance Contributions if there are any discrepancies in your record.

If you don't claim when you reach State Pension age, your payments won't start automatically and when you do begin receiving your State Pension payments they may be slightly higher to account for this deferral.

How often is the state pension paid?

The State Pension is usually paid every four weeks directly into your bank or building society account. Payments are made on the same day every four weeks, meaning you’ll get 13 payments each year rather than 12 monthly payments.

You can choose to receive weekly payments instead if you’d prefer, although most pensioners opt to receive the payments every four weeks.

Payments continue for life and should increase annually under the triple lock mechanism.

Can you defer the State Pension?

Yes, you can defer your State Pension payments beyond State Pension age, which could result in a small increase in your payments when you do claim your pension.

• Deferral benefits: For every nine weeks you defer claiming, your State Pension amount permanently increases by 1%. That works out to a permanent 5.78% increase for every full year you defer.
• How much does it increase?: If you defer for one year, your State Pension increases from £230.25 to £243.62 a week at current pricing (£12,668 annually instead of £11,973). This increase continues for life.
• Tax implications: The increased pension is taxable like any other pension income. Since deferral often means you have other income during the deferral period, it would be wise to consider the tax implications of higher pension income when making deferral decisions.

However, although there are benefits to deferral it really only makes sense if you don’t need the State Pension income yet, and you’re confident that you’re likely to live long enough to recoup the benefits of deferral.

It will take 17 years to recoup the £11,973 you gave up during one deferred year, which means it’s unlikely to make sense to defer for more than a year.

State pension when living abroad

If you decide to retire abroad you’ll still be entitled to receive your State Pension, and you can choose whether it’s paid into a bank account in the country you’ve moved to, or into a UK bank account.

There is one caveat though - depending on the country you’ve moved to you, you may not be entitled to the annual pension increases UK pensioners receive under the ‘triple lock’ mechanism.

Moving/retiring overseas

You can receive your State Pension in most countries worldwide, but whether it increases annually depends on reciprocal social security agreements between the UK and the country you move to.

Your State Pension amount will increase each year if you live in:

• the European Economic Area (EEA)
• Gibraltar
• Switzerland
• Another country that has a social security agreement with the UK (except Canada or New Zealand, where increases won’t apply).

You can find the full list of countries on the Department for Work & Pensions website.

Impact of divorce/dissolution

Divorce or the dissolution of a civil partnership can sometimes affect State Pension entitlement, particularly for people who reached State Pension age before April 2016.

Under the old system, married women could sometimes use their husband's National Insurance record to claim a pension based on his contributions, which means a divorce could affect this entitlement.

The new State Pension system doesn't include this provision, so everyone now builds their own entitlement based on their personal contribution record.

If you're divorced and have gaps in your National Insurance record from periods when you weren't working, check whether you received National Insurance credits for caring responsibilities that could count towards your State Pension.

Partial entitlement

If you don't have 35 qualifying years for the full new State Pension, your entitlement is reduced proportionally, provided you have at least 10 qualifying years for any pension.

Some examples of partial entitlement calculations:

• 10 qualifying years: £11,973 × (10 ÷ 35) = £3,421 annually
• 20 qualifying years: £11,973 × (20 ÷ 35) = £6,842 annually
• 30 qualifying years: £11,973 × (30 ÷ 35) = £10,262 annually

Even a partial State Pension provides valuable guaranteed income and inflation protection through the triple lock, making it worthwhile to claim even if you don't qualify for the full amount.

Advantages and disadvantages of the state pension

The UK State Pension offers a number of benefits as well as a few limitations, so it’s important to understand these factors when you’re planning for retirement.

Advantages

• Guaranteed by the Government: The State Pension provides secure, guaranteed income backed by the UK government. Unlike private pensions that are subject to the whims of the market, your State Pension continues at a steady, predictable amount.
• Inflation-Linked: The triple lock ensures your State Pension maintains its buying power throughout retirement, rising by the highest of inflation, earnings growth, or 2.5% annually. This protection is particularly valuable when you consider that your retirement might last for 20 or 30 years.
• Straightforward to Manage: Unlike private pensions, you don't need to make investment choices or assess the performance or fee structures of different providers. Once you qualify and claim your State Pension, payments continue automatically without any action needed from you.

Disadvantages

• Limited amount: The full State Pension amount of £11,973 a year is unlikely to provide sufficient income for most people's retirement needs. It’s less than half the average UK salary, and is well below the levels calculated by Retirement Living Standards as necessary for a moderate or comfortable retirement.
• No flexibility: Unlike private pensions with flexible access from age 55, the State Pension offers no early access options, so you can't access your State Pension before State Pension age (currently 66, rising to 67 by 2028).
• Future uncertainty: The rules that govern State Pension payments, age, and benefits can change when there’s a change to government policy. For example, the triple lock, the State Pension age, and the rules around qualifying years have all changed in the past and may change again, creating uncertainty about future entitlements.
• No inheritance: Unlike private pensions that can pass to beneficiaries, the State Pension generally can’t be inherited. While there are (very limited) survivor benefits for spouses under certain circumstances (usually relating to Additional State Pension sums, deferred sums, or pension topups), most of the State Pension can’t be inherited and if the pensioner wasn’t married at the time of their death there also aren’t any provisions for children or other beneficiaries.

Common Myths and FAQs

"I Automatically Get the State Pension, Right?"

Many people assume the State Pension starts automatically when they reach the qualifying age, but payments only begin after you claim.

You can claim your State Pension when you’re within four months of reaching State Pension age, and you’ll need an invitation code in order to begin this claim.

You can receive backdated payments for up to 12 months if you do claim late.

"The State Pension Is Enough for a Comfortable Retirement"

For most retirees the full State Pension amount of £11,973 is unlikely to be sufficient for a comfortable retirement unless they’re able to supplement it with other sources of retirement income.

The State Pension should be viewed as a foundation for your retirement income, rather than the entirety of it, and you should plan to supplement it with workplace or personal pensions, ISAs, or other retirement savings in order to achieve your desired living standards in retirement.

Analysis by the Retirement Living Standards suggests you’d need an annual retirement income of £31,700 a year for a moderate standard of living, or £43,900 for a comfortable standard of living. Even a minimum standard of living would require more than the full State Pension amount - £13,400 a year, compared to the £11,973 you’d receive from a full New State Pension.

"If I Delay Claiming, Will I Lose Money?"

Delaying your State Pension claim permanently increases your weekly payments by 5.78% for each full year of deferral. While you give up income during the deferral period, you receive higher payments for life once you claim.

Still, this is only beneficial if you live long enough to benefit from the higher payments in later years. Given that it will take 17 years to recoup the amount you gave up during one year of deferral, it usually wouldn’t make sense to defer for more than a year.

"Does My Spouse Inherit My State Pension?"

No, your spouse won’t inherit the main part of your State Pension, although if you deferred your pension or topped it up in some other way then they may be entitled to receive that topup amount.

"Everyone gets the full amount."

Many people receive less than the full State Pension due to gaps in their National Insurance Contribution record. You need 35 qualifying years for the full new State Pension, and many people have periods of unemployment, low earnings, or caring responsibilities that can create gaps in this record.

That’s why it’s important to check your State Pension forecast below before you reach retirement age, because it’s often possible to plug some or all of these gaps if you have enough time to do it before retirement.

Age-specific tips for the State Pension

How to manage your state pension in your 30s–40s

While many people in their 30s and 40s are thinking about their workplace pensions or SIPPs, a lot of people forget to check their State Pension forecast. Checking this forecast early can help to identify any gaps that need addressing and provides time to plug those gaps.

• Plug gaps promptly: If you have missing years in your National Insurance record, consider paying voluntary contributions while you still can. You can usually pay for up to six years retrospectively, but earlier years become unavailable over time.
• Plan around career breaks: If you're considering extended career breaks for family reasons, understand how this might affect your State Pension entitlement and whether National Insurance credits will be available to protect your record.
• Consider the big picture: While 35 years seems distant in your 30s and 40s, starting early with consistent contributions makes reaching the full State Pension more achievable without needing voluntary contributions later.

How to manage your state pension in your 50s

With State Pension age approaching, it’s a good idea to check your forecast fairly regularly in order to ensure you're on track for full entitlement.

• Ensure 35 qualifying years: Calculate whether you'll reach 35 qualifying years by State Pension age through normal contributions, or whether you need to pay voluntary contributions to achieve the full pension.
• Plan for early retirement: If you're considering retiring before State Pension age, understand that you'll have a gap in income until your State Pension starts, and you may also stop clocking up qualifying years if you aren’t earning a regular income.
• Review voluntary contribution options: Your 50s are often the last big opportunity to pay voluntary contributions for earlier years, so evaluate whether this would provide good value for increasing your State Pension.

How to manage your state pension in your 60s

Consider whether to claim your State Pension immediately upon reaching State Pension age, or to defer it for a year in order to get higher payments. It rarely makes sense to defer for more than a year, though.

• Plan for tax: If you're still working or have substantial private pensions, understand how State Pension income will affect your tax position and plan accordingly.
• Coordinate with other pensions: Plan how your State Pension timing integrates with accessing private pensions, considering the overall tax efficiency and income flow throughout retirement.
• Complete your claim: Don't forget to actually claim your State Pension. You can apply about four months before you hit the State Pension age.

How does the state pension fit into overall retirement planning?

The State Pension is a firm foundation for your retirement planning, providing guaranteed income that could allow you to take more or less risk with other retirement savings depending on your circumstances and goals.

• Baseline income: Use your State Pension forecast as the foundation when calculating retirement income needs. If you need £20,000 annually and expect approximately £12,000 from your Pension, then you need to provide £8,000 a year from other sources.
• Risk management: Depending on your risk appetite, the security of the State Pension might enable you to take more investment risk with your private pensions, knowing you have secure income to cover the basics.
• Future changes: It’s a good idea to keep an eye on any proposed changes to legislation around State Pension ages, the triple lock policy, or qualification requirements. These changes could affect your retirement timing and income planning, requiring adjustments to your overall strategy.

When to seek advice or guidance

While the State Pension is intended to be relatively straightforward, there are some scenarios where you might benefit from professional financial advice or guidance:

• Complex National Insurance records: If you have multiple periods of living abroad, gaps in employment, or mixed employment types, professional guidance could help ensure you're maximising your State Pension entitlement through voluntary contributions or credit claims.
• Deferral decisions: If you’re considering deferring your State Pension an adviser might be able to help you to understand whether this decision makes good financial sense.
• International considerations: If you've worked abroad, plan to retire overseas, or have a complex residency history, a financial adviser could help you navigate the international aspects of State Pension entitlement and taxation.
• Transition planning: Coordinating State Pension timing with private pension access, employment decisions, and tax planning could benefit from professional retirement planning advice, particularly for higher earners with complex financial situations.

Government resources like MoneyHelper and Pension Wise can provide free, impartial guidance on State Pension and retirement planning, while tools from financial services providers (including the JUST retirement planning app) can offer in depth information and guides on retirement planning.

Next steps and additional resources

Taking control of your State Pension planning is relatively straightforward:

• Check your record annually: Make checking your National Insurance record and State Pension forecast part of your annual financial review, ensuring you spot any issues early and can take corrective action.
• Act on gaps promptly: If you identify missing years that could benefit from voluntary contributions, then aim to plug those gaps as soon as possible. Delaying could result in missed opportunities to make voluntary contributions.
• Plan with other pensions in mind: Consider how your State Pension timing and amount affects your private pension strategy, including when to access other pensions and how much additional retirement income you need.
• Stay informed about legislative changes: Monitor government announcements about State Pension age increases, triple lock modifications, or other policy changes that might affect your planning.
• Review regularly: If State Pension rules, ages, qualifying years, or your own personal circumstances change, you should review how those changes will affect your State Pension