State pension
How much is the state pension?
The state pension system was transformed in 2016. That is why you’ll hear references to ‘new’ and ‘old’ state pension.
The new state pension is a single payment, while the old system involves a basic state pension, with an additional pension payment that some people are eligible for.
Old state pension
If you retired before 6 April 2016, the basic state pension in 2020-21 is:
£134.25 per week
Some people also qualify for additional state pension or ‘state second pension’.
New state pension
If you retired after 6 April 2016 (or plan to), you’ll receive the new state pension, which in 2020-21 is:
£175.20 per week
Currently, to qualify for the full amount, you’ll need to have paid National Insurance (NI) contributions for 35 years. But as long as you have at least 10 years’ of NI contributions, you’ll be entitled to receive a state pension.
For more detailed information about how the payments are calculated, visit the Which? Money guide to the state pension.
What age do I get my state pension?
By the end of 2018, the state pension age for women had risen to 65 years, to match the age for men. By October 2020, it had increased to 66 years for both men and women. It is scheduled to continue rising, and will reach 67 years for men and women between 2026 and 2028. The pension age is constantly under review, so further increases are expected to be made in future.
The precise age you become entitled to the state pension depends on when you were born.
The Which? Money State pension age calculator can quickly forecast when you’ll be entitled to claim your pension. It uses your date of birth to calculate when you’ll hit state pension age. It also points you to further information about how much you may get and how to maximise the benefit.
What do I need to know about claiming the state pension?
You don’t have to stop working when you reach state pension age
If you decide to carry on working past the official retirement age, you can still claim your state pension. But if you choose to defer payments, this can increase the amount that you get when you do eventually claim.
- Find out more: Deferring your state pension
The state pension is not tax-free
If your total income (including pay, state pension, private pensions, income from property and so on) is more than your annual tax-free allowance, you’ll have to pay tax on your pension. Personal allowances change each year and are dependent on age.
For more information, visit the Which? Money guidance on personal allowances.
You may have to contribute some of your state pension towards care costs
The state pension is included in the financial assessment for a care home or care at home.
Find out more about managing money in later life:
How do I claim my state pension?
You need to apply for the state pension – it doesn’t arrive automatically. You should receive a letter four months before you reach state pension age.
You’ll need this letter to complete your claim. If you don’t receive the letter, call the state pensions claim line below. To apply, you need to either fill out the printable form BR1 or apply online.
The form is long, so set aside a reasonable amount of time to fill it in.
In Northern Ireland, the application procedure is slightly different. You’ll need to visit nidirect.gov.uk to claim.
What happens to state pension if you move into a care home?
When someone moves into a care home, their eligibility for state benefits may change. This will depend on whether they are paying for their own care (known as ‘self-funding’) or if a local authority is contributing to the costs.
Find out more about how paying for care may affect your benefits, pension and other income.
Further reading
Pension Credit tops up your state pension if you have a low income. Find out who is eligible and how much you could get.
Read about the benefits available in later life: Attendance Allowance, PIP, Winter Fuel Payment and more.
Read about Attendance Allowance and the payment rates, plus tips on applying and completing the form.
