← Guides / UK Pensions & Retirement

State Pension

The UK State Pension is a regular payment from the government that you become eligible for when you reach State Pension age. For the 2025/26 tax year, the full new State Pension is £221.20 per week, while the basic State Pension (for those who reached State Pension age before 6 April 2016) is £169.50 per week. The amount you actually receive depends on your National Insurance record, the number of qualifying years you have built up, and whether you were contracted out of the additional State Pension.

New State Pension vs Basic State Pension

If you reached State Pension age on or after 6 April 2016, you are assessed under the new State Pension system. The full rate of £221.20 per week is available if you have at least 35 qualifying years of National Insurance contributions. You need a minimum of 10 qualifying years to receive any new State Pension at all. If you reached State Pension age before 6 April 2016, you receive the basic State Pension of £169.50 per week, typically requiring 30 qualifying years for a full basic pension. You may also receive additional State Pension (SERPS, S2P or graduated pension) on top of the basic amount.

Qualifying Years and Your NI Record

A qualifying year is a tax year in which you paid or were credited with sufficient National Insurance contributions. For 2025/26, you need earnings above £6,380 from employment or Class 2 contributions of £179.40 if self-employed to make a year count. If you have gaps in your record, you may be able to pay voluntary Class 3 contributions (£17.45 per week for 2025/26) to fill missing years, usually going back up to six years. You can check your NI record and State Pension forecast online through the HMRC government gateway. Credits are also available for periods of unemployment, illness, caring responsibilities (including Child Benefit claims for children under 12), and jury service.

Contracting-Out Deductions

If you were contracted out of the additional State Pension (SERPS or S2P) through a workplace pension scheme before 6 April 2016, you will have paid lower NI contributions. As a result, your new State Pension will be reduced by a "contracted-out deduction." This deduction reflects the fact that you and your employer paid lower NI and you built up a private pension instead. The deduction can be substantial, meaning you may receive significantly less than the headline £221.20. Your State Pension forecast will show the net amount after this deduction. Some people receive a "protected payment" on top if their starting amount under the old rules was higher.

Deferring Your State Pension

You can choose to defer taking your State Pension after you reach State Pension age. For every week you defer, your pension increases by the equivalent of 1% for every 9 weeks of deferral, which works out at roughly 5.8% extra per year. If you deferred before 6 April 2016, the rate is more generous at 1% per 5 weeks (about 10.4% per year). Deferring can be a useful strategy if you are still working, have other income, or want to boost your guaranteed income in later years. You can defer for as long as you like — there is no upper limit. Once you start claiming, the increased rate applies for the rest of your life and increases each year under the triple lock.

Forecasting and Checking Your Pension

HMRC provides a free State Pension forecast service online through the gov.uk website. You will need your Government Gateway login details. The forecast shows your estimated State Pension based on your current NI record and what you might receive if you contribute more years. It also tells you the earliest date you can claim and how much you could increase your pension by making voluntary contributions. Given the complexity of the transitional rules, especially for those with contracting-out history, it is wise to check your forecast well ahead of retirement. Errors in NI records are not uncommon and take time to correct.

Triple Lock

The State Pension is increased each year under the triple lock mechanism, meaning it rises by the highest of average earnings growth, CPI inflation (from the previous September), or 2.5%. For 2025/26, this resulted in a 4.1% increase based on earnings growth. The triple lock ensures the State Pension retains its value relative to living costs and earnings over time, though it has been the subject of political debate over its long-term affordability.