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State Pension basics
The way it works and how you can find out what you'll get from the State.
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State Pension basics
State pensions are paid by the government to us when we have reached a certain age, known as our "State Pension age". The amount of pension we receive is determined by the amount of "qualifying years" we have collected by paying National Insurance.
When is my State Pension age?
This varies depending on whether you are male or female and when your birthday falls.
In the June 2010 budget, the Government announced that it wants to review when the State Pension age will rise to 66 years. This change was set to be introduced between April 2024 and April 2026 but the Government wants this to be sooner.
What do I have to do to get a Basic State Pension?
You need to have paid National Insurance for a certain length of time. For each tax year you have paid National Insurance or been credited with National Insurance you will get one "qualifying year".
If you reach State Pension age on or after 6th April 2010 then the amount of qualifying years you need reduces to 30 years for both men and women.
How much will I get?
The amount of basic State Pension payable is announced by the government each year and you will receive a forecast from H M Revenue & Customs shortly before you reach your State Pension age. However you can request a forecast at any time.
What if I don't have enough qualifying years?
If you get a forecast of your basic State Pension you will be able to see if you have enough qualifying years for the full entitlement. If you don't than it is possible to "buy back" qualifying years.
Also if you have been a parent or a long term carer then it could be possible to reduce the number of qualifying years you need to get the full basic State Pension.
How do I claim?
The Pension service should send you a claim form four months before you reach your State Pension age. If you don't receive this you can get one from The Pension Service.
Your basic State Pension can be paid into your bank, building society, Post Office or National Savings account that accepts direct debit payments.
What if I don't want to claim my basic State Pension when I reach State Pension age?
Then you don't have to. You can put off claiming your entitlement and get a higher weekly amount or the option of taking a one-off taxable cash payment.
What happens if I move abroad after I have claimed my basic State Pension?
Nothing, you can continue to receive your basic State Pension anywhere in the world. However, you may not receive an annual increase, depending on where you live.
Source: Time For Money