Whether you’re approaching pensionable age or planning for the future, check out our quick guide to everything you need to know about the UK State Pension
What is the State Pension?
In the UK, the State Pension is a regular payment from the government that most people will be eligible to claim once they reach pensionable age. The State Pension is typically paid to an account of your choice, in arrears, every four weeks. Not everyone will receive the same amount; in fact, the exact figure you get will depend on your National Insurance record.
How do I qualify for the State Pension?
To qualify for the minimum State Pension amount, you’ll normally need to have at least 10 qualifying years on your National Insurance record. These 10 years don’t have to have been completed consecutively, so if you’ve had an employment break, don’t panic!
To receive the full State Pension amount, you must have at least 35 years of National Insurance contributions on your record.
Each individual’s State Pension will typically be based solely on their own contributions. You won’t usually be able to claim the contributions of a spouse or civil partner, even if you’re now widowed or divorced.
How much is the State Pension?
For the year 2023/24, the full UK State Pension amount is £203.85 a week. This amount will usually increase each year to keep up with inflation.
If you’re curious to find out how much you might receive when you reach pensionable age, you can visit the government’s State Pension forecast. This will tell you the age that you can expect to retire, how much you might receive as a pension, and what you can do (if anything) to increase this amount.
When can I claim the State Pension?
In the UK, you can currently claim the State Pension once you reach 66 years old. However, if you were born after 6th April 1960, you can’t claim until you turn 67, and if you were born after 6th April 1977, you’ll need to wait until you’re 68 to qualify.
You don’t have to claim your State Pension straightaway. In fact, the amount you can claim could increase if you can comfortably afford to defer your payments for a while. Your pension payment will increase by 1% for every nine weeks that you defer or around 5.8% for each full year of deferment.
How can I claim the State Pension?
If you’ve made National Insurance contributions for at least 10 years during your working life, you should receive a letter from the UK State Pension Service four months before you become eligible to claim. This letter will include details of exactly how to submit a claim; you can usually do this online, over the phone, or via post. You’ll likely need to provide your National Insurance number and you might also need to supply evidence of your date of birth for your claim to be approved.
How is National Insurance paid?
If you’re employed, your National Insurance contributions will typically be taken automatically by your employer before you receive your pay. You must earn over £242 a week for National Insurance to be paid in this way.
If you’re self-employed, you’ll need to pay your National Insurance contributions yourself as part of your self-assessment.
There are many reasons why you might not have paid National Insurance contributions consistently throughout your working life. There might be a gap in your record if you’ve spent time living and paying taxes abroad, if you had jobs where you didn’t earn enough to qualify for automatic contributions, or if you were unemployed and not claiming benefits for a period. The good news is that you can make voluntary contributions later to make up these missing years if you wish.
Can I keep working while claiming my State Pension?
Yes, you don’t need to stop working once you reach pensionable age if you don’t want to. It’s worth keeping in mind that your pension payments will be classed as earned income when it comes to calculating your Income Tax, but you can continue working full-time or request a flexible working arrangement from your employer.
Can I claim benefits while claiming my State Pension?
If you’re not eligible for the full State Pension amount or haven’t reached the 10-year contribution minimum, you may be eligible to claim Pension Credit. This is an income-based government benefit that will top up your weekly income so that it reaches the guaranteed minimum pension amount if you’re of pensionable age.
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