Tax Glossary

State Pension

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Last updated on:
March 17, 2024

The UK State Pension acts as a foundation for your retirement, offering a weekly payment from the government designed to support your basic living costs once you've reached the State Pension age. The amount you're entitled to depends on your National Insurance (NI) contribution history.

Eligibility for the State Pension

To be eligible for the State Pension, you typically need a minimum of 10 years of NI contributions, though you'll need 35 years to receive the full pension amount. There are instances where you may have gaps in your NI record due to periods of unemployment, living abroad, illness, or time off for childcare, which can affect your eligibility. However, you have the option to make voluntary NI contributions to fill these gaps.

Claiming Your State Pension

The State Pension age, as of April 2021, is 66 for both men and women. However, this age is set to increase to 67 by 2028 and further to 68 between 2037 and 2039, reflecting changes in life expectancy and economic considerations.

How Much Will You Receive?

The amount you receive from the State Pension depends on your NI record. For those who reached State Pension age before 6th April 2016, the basic State Pension rate is £156.20 a week for the tax year 2023/24. For those reaching State Pension age after this date, the new State Pension rate is £203.85 per week for 2023/24.

It's possible to receive more than the basic amount if you've accumulated additional State Pension through your earnings. This additional pension is available to men born before 6th April 1951 and women born before 6th April 1953. If you were born after these dates, you wouldn't be eligible for the additional amount.

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