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The New State Pension

In April 2016, the Government introduced a new State Pension to replace the existing system. This only applies to men born on or after 6 April 1951 and women born on or after 6 April 1953. It has been announced that the new State Pension will be £155.65* per week. To claim any new State Pension you will have had to have made National Insurance contributions (NICs) for at least 10 years.

* This is based on having at least 35 'qualifying years' of National Insurance contributions (NICs).

The State Pension is the main source of retirement income for a lot of people in the UK. It is a guaranteed income that’s paid by the Government. You’re eligible to get your State Pension once you reach State Pension age. If you don’t want to start taking it, then you can choose to defer receiving the payments to a later date.

Your state benefits

Once you reach State Pension age, there are a number of benefits you may be eligible for. Some may seem small, but add them all up over the years and they’ll save you a lot.

Who’s eligible?

If you’ve paid, or been credited with, National Insurance contributions (NICs) you’re eligible for a State Pension.

What you get

The amount you’ll get from the State Pension will largely depend on how many years National Insurance contributions (NICs) you’ve paid or been credited with up until State Pension age.

Tax on State Pensions

HM Revenue and Customs (HMRC) see your State Pension as an income, although you do not pay tax on it directly. If your yearly income goes over your personal allowance (the amount of income you can receive in a tax year before you start paying income tax – the standard personal allowance is £11,000 in tax year 2016/17), the tax due will be taken from any additional income you receive and paid according to the tax bracket you fall into.

When will you get your State Pension?

State Pension age varies depending on when you were born but is expected to increase gradually to 68 by mid 2030s. To find out when you’ll be entitled to collect your State Pension, use the Government’s State Pension Calculator.

You have to claim your State Pension

You don’t get your State Pension automatically, you need to claim it. You should get a letter four months before you reach State Pension age telling you what to do. So, if you’ve not been contacted about claiming it three months before, call the State Pension claim line on 0800 731 7898.