When you reach State Pension age, you will be eligible to receive the new State Pension if you are:
If you were born before, these rules do not apply. Instead, you’ll get the basic State Pension. You may also get Additional State Pension.
The new State Pension is a regular payment from the government that most people can claim in later life. It offers a stable income in retirement, helping individuals maintain their living standards. To be eligible for the new State Pension, you must meet specific criteria related to your age, National Insurance record, and residency status.
Eligibility Requirements
The new State Pension is available to individuals who meet the following conditions:
- Age: You must have reached State Pension age. This age varies depending on your gender and date of birth. Currently, the State Pension age for men is 66, and for women, it is 65. However, it is gradually increasing to 67 for both genders by 2028.
- National Insurance Record: You need at least 10 qualifying years on your National Insurance record. A qualifying year is one in which you were either working and paying National Insurance contributions, receiving National Insurance credits for reasons like unemployment or illness, or making voluntary National Insurance contributions.
- Residency: You must have lived or worked in the UK for a specific period. If you have not met this requirement, you may still be eligible for a reduced State Pension.
Amount of the New State Pension
The amount of new State Pension you receive depends on your National Insurance record. The full rate of the new State Pension is currently £190.50 per week. However, your individual amount may vary depending on the following factors:
- Contracted Out Status: If you were contracted out of the Additional State Pension before 2016, your State Pension may be lower.
- Number of Qualifying Years: The more qualifying years you have on your National Insurance record, the higher your State Pension will be.
- Additional State Pension Contributions: If you paid into the Additional State Pension before 2016, you may receive a top-up payment on top of the full rate of the new State Pension.
Checking Your State Pension Forecast
To get a personalized estimate of your new State Pension amount, you can check your State Pension forecast on the government website. This forecast will show you your projected State Pension based on your current National Insurance record and any future contributions you are expected to make.
The new State Pension provides a valuable source of income for individuals in retirement. Understanding the eligibility requirements and factors affecting the amount of the new State Pension can help you plan for your future and ensure you receive the benefits you are entitled to. Remember to check your State Pension forecast regularly to stay informed about your projected retirement income.
Your National Insurance record
To be eligible for any new State Pension, you must have ten qualifying years on your National Insurance record.
A qualifying year is one in which you were:
The years of eligibility listed on your National Insurance record determine the amount of your State Pension. To find out what you might receive when you reach State Pension age, check your State Pension forecast.
Your spouse or civil partner’s pension
Usually, your own National Insurance record will serve as the basis for your new State Pension. You may receive a State Pension by inheritance or through a spouse or civil partner in certain situations.
Financial Adviser Explains – The New State Pension (UK)
FAQ
What’s the difference between the basic state pension and the new state pension?
How much is state pension in the US?
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Table 10. Median benefit for persons age 65 and older with income from private pensions and annuities, public pensions, and veterans benefits
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Type of pension benefit
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Median benefit, 2022
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Private pensions and annuities
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$11,040
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Federal government pension
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$26,380
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State or local government pension
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$24,980
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What counts as a qualifying year for state pension?
What is the basic state pension?
The basic State Pension is usually paid every 4 weeks into an account of your choice. You’re paid ‘in arrears’, which means you’re paid for the last 4 weeks, not for the coming 4 weeks. There are different rules if you live abroad. The basic State Pension increases every year by whichever is the highest of the following:
When is my state pension age?
You can claim state pension when you reach the state pension age. For men and women, this is currently 66. The state pension age is scheduled to rise to 67 between 2026 and 2028. The age at which you’re eligible for the state pension is set to increase again to age 68 between 2037 and 2039, although the revised timetable hasn’t been confirmed.
How many years NI contributions for pension?
You usually need a total of 30 qualifying years of National Insurance contributions or credits to get the full basic State Pension. This means that for 30 years, one or more of the following applied to you: you were getting National Insurance Credits, for example you were unemployed, sick, or a parent or carer
What is the new pension scheme?
What is New Pension Scheme (NPS)? National Pension Scheme (NPS) is a social security initiative launched by the central government for government employees. The new pension system is a mandatory contribution for the employees of public, private and even unorganized sectors except the armed forces on or after January 1, 2004.