UK State Pension Complete Guide 2025 | How Much, When & How to Claim

1. State Pension Overview

The State Pension is a regular payment from the government that you can claim when you reach State Pension age. It's based on your National Insurance contribution record and is designed to provide a foundation for retirement income.

Two State Pension Systems

The UK currently has two State Pension systems running in parallel:

Key Facts for 2025/26

• Full new State Pension: £221.20 per week (up from £203.85)
• You need 35 qualifying years for the full amount
• You need at least 10 qualifying years to get anything
• State Pension is taxable income (but no NI to pay)
• April 2024 increase was 8.5% (triple lock - earnings growth)

2. Current Pension Amounts

New State Pension Rates 2025/26

Basic State Pension Rates 2025/26

Recent Increases

3. State Pension Age

State Pension age (SPA) is the earliest age you can start receiving State Pension. It has been rising and will continue to do so.

Current State Pension Age

Future Changes

Can You Get It Earlier?

No - unlike workplace pensions, you cannot access State Pension before your State Pension age. If you retire earlier, you'll need other income sources until your SPA.

4. Qualifying Years Explained

A qualifying year is a tax year in which you've paid or been credited with enough National Insurance contributions to count towards your State Pension.

How to Get a Qualifying Year

• Working and paying NI: If you earn above £6,396/year (2025/26), you automatically get a qualifying year
• Self-employed: Paying Class 2 NI (now voluntary) or Class 4 on profits above threshold
• NI credits: Received automatically in certain circumstances
• Voluntary contributions: Pay Class 3 NI to fill gaps

Automatic NI Credits

You receive NI credits (counting as qualifying years) if you:

• Claim Child Benefit for a child under 12
• Are registered as unemployed and claiming Jobseeker's Allowance
• Claim Employment and Support Allowance or Statutory Sick Pay
• Are a carer receiving Carer's Allowance
• Are in approved training
• Are a foster carer (certain conditions apply)
• Receive Working Tax Credit with disability element

Check Your NI Record

Check your National Insurance record online at gov.uk/check-national-insurance-record. You'll see:

• How many qualifying years you have
• Years with gaps in contributions
• Your State Pension forecast
• Whether you can fill any gaps

5. Filling Gaps in Your Record

If you have gaps in your NI record, you may be able to make voluntary contributions to increase your State Pension. This can be extremely good value.

Extended Deadline - Act Soon!

Cost vs Benefit Analysis

When NOT to Fill Gaps

Filling gaps isn't always worthwhile:

• If you already have 35 qualifying years (you can't get more than the full pension)
• If you'll definitely reach 35 years through future work
• If you're on the old system with a "protected payment" above the new rate
• If you're contracted out for many years (complex calculation needed)

How to Pay Voluntary NI

1. Check your NI record at gov.uk
2. Call the Future Pension Centre: 0800 731 0175
3. They'll tell you which years to fill and exact cost
4. Pay by bank transfer, cheque, or Direct Debit

6. How to Claim Your State Pension

The State Pension isn't automatic - you need to claim it. You should receive an invitation letter about 4 months before your State Pension age.

Ways to Claim

• Online: gov.uk/get-state-pension (quickest method)
• Phone: 0800 731 7898 (Pension Service)
• Post: Download claim form BR1 from gov.uk

What You'll Need

• National Insurance number
• Bank or building society details
• Date you want payments to start
• Date of your last marriage/civil partnership (if applicable)

Payment Details

7. Deferring Your Pension

You don't have to claim your State Pension at State Pension age. If you delay (defer), your pension increases when you do claim it.

New State Pension Deferral Rates

• Increase: 1% for every 9 weeks deferred
• Annual increase: approximately 5.8%
• Minimum deferral: 9 weeks
• No maximum deferral period

Is Deferring Worth It?

Breakeven point: You'd need to live about 17 years after you start claiming to benefit from deferring. If you live longer, you gain; if not, you lose.

When Deferring Makes Sense

• You're still working and earning good income
• Extra State Pension would push you into higher tax bracket
• You're in good health and expect to live well past breakeven
• You have other income and don't need the pension yet

When Deferring Doesn't Make Sense

• You need the money now
• Health concerns about longevity
• You could invest the pension and potentially earn more
• You're claiming means-tested benefits

8. Working While Receiving Pension

There's no restriction on working while receiving State Pension. Many people continue working past State Pension age.

Key Points

• No NI to pay: Once past SPA, you don't pay National Insurance on earnings
• Still pay income tax: State Pension is taxable income
• Pension doesn't reduce: Your earnings don't affect your State Pension amount
• No maximum earnings: Earn as much as you like

Tax Considerations

Your State Pension uses up most of your Personal Allowance:

• Full new State Pension: £11,502/year
• Personal Allowance: £12,570
• Remaining tax-free earnings: only £1,068

Working Past 66 - Employer Benefits

• Employers save 15% employer's NI on your earnings
• You save 8% employee's NI
• Combined 21.8% saving makes employing pensioners attractive
• Many employers value experienced workers

9. Ways to Boost Your Pension Income

Before State Pension Age

• Fill NI gaps: Pay voluntary contributions to increase State Pension
• Maximise workplace pension: Get full employer match
• Start a SIPP: Additional private pension with tax relief
• Use Lifetime ISA: 25% bonus if under 40 (for first home or retirement)
• Check for NI credits: Ensure you're getting all credits entitled to

At State Pension Age

• Consider deferring: If you don't need the money immediately
• Claim all benefits: Check eligibility for Pension Credit, Winter Fuel Payment
• Combine with other pensions: Workplace and private pensions

Pension Credit

If your income is low, you may qualify for Pension Credit - a means-tested benefit:

Other State Benefits for Pensioners

• Winter Fuel Payment: £100-£300 depending on circumstances
• Cold Weather Payment: £25 for each week of very cold weather
• Free bus pass: Available from State Pension age (England)
• Free prescriptions: Once you reach 60
• Attendance Allowance: If you need help with personal care

Related Calculators

Plan your retirement with our free calculators:

• Pension Calculator - Plan your retirement income
• National Insurance Calculator - Check your NI contributions
• Salary Calculator - Work out your take-home pay
• Tax Calculator - Calculate your tax liability