Creating A Better Financial Future 

The New State Pension 

State Pension Eligibility 

You’ll be able to claim the new State Pension if you’re: 
• a man born on or after 6 April 1951 
• a woman born on or after 6 April 1953 
 
The earliest you can get the new State Pension is when you reach State Pension age. If you reached State Pension age before 6 April 2016, you’ll get the State Pension under the old rules instead. 
 
What you'll get 
The full new State Pension is £175.20 per week. The actual amount you get depends on your National Insurance record. 
 
The only reasons the amount can be higher are if: 
• you have over a certain amount of Additional State Pension 
• you defer (delay) taking your State Pension 
 
You can still get a State Pension if you have other income like a personal pension or a workplace pension. You might have to pay tax on your State Pension. 
 
How it’s paid 
The new State Pension is usually paid every 4 weeks into an account of your choice. You’re paid in arrears (for the last 4 weeks, not the coming 4 weeks). The day your pension is paid depends on your National Insurance number. 
Last 2 digits of your National Insurance Number 
Payment day of the week 
00 to 19 
Monday 
20 to 39 
Tuesday 
40 to 59 
Wednesday 
60 to 79  
Thursday 
80 to 99 
Friday 
Your first payment. You should get your first payment within 5 weeks of reaching State Pension age. 
Example 
You reach State Pension age on Monday 1 November and your payment day is a Friday. 
You’ll get paid: 
• on Friday 5 November (for 1 to 5 November) 
• every 4 weeks on a Friday, after that 
 
How it's calculated 
The full new State Pension is £175.20 per week. What you’ll receive is based on your National Insurance record. 
 
Valuing your National Insurance contributions and credits made before 6 April 2016. Your National Insurance record before 6 April 2016 is used to calculate your ‘starting amount’. This is part of your new State Pension. 
 
Your starting amount will be the higher of either: 
• the amount you would get under the old State Pension rules (which includes basic State Pension and Additional State Pension) 
• the amount you would get if the new State Pension had been in place at the start of your working life 
 
Your starting amount will include a deduction if you were contracted out of the Additional State Pension. You may have been contracted out because you were in a certain type of workplace, personal or stakeholder pension. 
 
If your starting amount is less than the full new State Pension. You can get more State Pension by adding more qualifying years to your National Insurance record after 5 April 2016. You can do this until you reach the full new State Pension amount or reach State Pension age - whichever is first. 
 
Each qualifying year on your National Insurance record after 5 April 2016 will add about £5.00 a week to your new State Pension. The exact amount you get is calculated by dividing £175.20 by 35 and then multiplying by the number of qualifying years after 5 April 2016. 

State Pension Examples 

Example 
You had a starting amount from your National Insurance record before 6 April 2016 of £120 a week. 
 
You have another 6 qualifying years on your National Insurance record after 5 April 2016 (each year adding about £5.00 a week to your State Pension) equalling £30.00 a week. 
 
This adds up to about £150.00 a week for your State Pension. This figure may change as the starting amount is adjusted to account for inflation. If your starting amount is more than the full new State Pension. The part of your starting amount which is above the full new State Pension is called your ‘protected payment’.  
 
This is paid on top of the full new State Pension. Any qualifying years you have after 5 April 2016 will not add more to your State Pension. You did not make National Insurance contributions or get National Insurance credits before 6 April 2016 Your State Pension will be calculated entirely under the new State Pension rules.  
 
You’ll usually need at least 10 qualifying years on your National Insurance record to get any State Pension. You’ll need 35 qualifying years to get the full new State Pension. You’ll get a proportion of the new State Pension if you have between 10 and 35 qualifying years. 
Example 
You have 20 qualifying years on your National Insurance record after 6 April 2016. 
 
You divide £175.20 by 35 and then multiply by 20. 
 
Your new State Pension will be about £100.11 per week. 
 
Your new State Pension is more likely to be calculated in this way if you were born after the year 2000 or became a resident of the UK after 2015. 
 
Annual increases 
The new State Pension increases each year by whichever is the highest: 
• earnings – the average percentage growth in wages (in Great Britain) 
• prices – the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI) 
• 2.5% 
 
If you have a protected payment, it increases each year in line with the CPI. 
Get a State Pension statement 
 
You can get a State Pension statement that can tell you how much new State Pension you may get. 

You've been in a workplace, personal or stakeholder pension 

Your starting amount may include a deduction if you were in certain: 
• earnings-related pension schemes at work (such as a final salary or career average pension) before 6 April 2016 
• workplace, personal or stakeholder pensions before 6 April 2012 
 
You may have paid lower National Insurance contributions and paid into one of these pensions instead. This is known as being ‘contracted out’ of the Additional State Pension and will affect most people who have been in work. You can check with your pension provider if you’ve been contracted out in the past. The Pension Tracing Service might be able to find your pension providers’ contact details if you’ve lost contact with them. 
 
Changes to contracting out from 6 April 2016 
On 6 April 2016 these rules changed so that if you were contracted out: 
• you’ll no longer be contracted out 
• you’ll pay more National Insurance (the standard amount) 
Check if you were contracted out 
Check your old payslips. You were contracted out if the National Insurance contributions line has the letter D or N next to it. You were not contracted out if it has a letter A. 
If there’s a different letter, check with your employer or pension provider. 
 
You’re more likely to have been contracted out if you worked in the public sector, for example: 
• the NHS 
• local councils 
• fire services 
• the civil service 
• teaching 
• police forces 
• the armed forces 
You paid National Insurance at a lower rate if you were contracted out. 

Your National Insurance record and your State Pension 

Your new State Pension is based on your National Insurance record when you reach State Pension age. You’ll usually need to have 10 qualifying years on your National Insurance record to get any new State Pension. You may get less than the new full State Pension if you were contracted out before 6 April 2016. You may get more than the new full State Pension if you would have had over a certain amount of Additional State Pension under the old rules. You’ll need 35 qualifying years to get the new full State Pension if you do not have a National Insurance record before 6 April 2016. 
 
Qualifying years if you’re working 
When you’re working you pay National Insurance and get a qualifying year if: 
• you’re employed and earning over £183 a week from one employer 
• you’re self-employed and paying National Insurance contributions 
 
You might not pay National Insurance contributions because you’re earning less than £183 a week. You may still get a qualifying year if you earn between £120 and £183 a week from one employer. 
 
Qualifying years if you’re not working 
You may get National Insurance credits if you cannot work - for example because of illness or disability, or if you’re a carer or you’re unemployed. 
For example, you can get National Insurance credits if you: 
• claim Child Benefit for a child under 12 (or under 16 before 2010) 
• get Jobseeker’s Allowance or Employment and Support Allowance 
• get Carer’s Allowance 
 
You’re not working or getting National Insurance credits 
You might be able to pay voluntary National Insurance contributions if you’re not in one of these groups but want to increase your State Pension amount. 
 
Gaps in your National Insurance record 
You can have gaps in your National Insurance record and still get the full new State Pension. 
 
You can get a State Pension statement which will tell you how much State Pension you may get. You can then apply for a National Insurance statement from HM Revenue and Customs (HMRC) to check if your record has gaps. 
If you have gaps in your National Insurance record that would prevent you from getting the full new State Pension, you may be able to: 
• get National Insurance credits 
• make voluntary National Insurance contributions 

Inheriting or increasing State Pension from a spouse or civil partner 

 
You might be able to inherit an extra payment on top of your new State Pension if you’re widowed. 
 
You will not be able to inherit anything if you remarry or form a new civil partnership before you reach State Pension age. 
Inheriting Additional State Pension 
 
You might inherit part of your deceased partner’s Additional State Pension if your marriage or civil partnership with them began before 6 April 2016 and one of the following applies: 
• your partner reached State Pension age before 6 April 2016 
• they died before 6 April 2016 but would have reached State Pension age on or after that date 
It will be paid with your State Pension. 
 
Inheriting a protected payment 
You’ll inherit half of your partner’s protected payment if your marriage or civil partnership with them began before 6 April 2016 and: 
• their State Pension age is on or after 6 April 2016 
• they died on or after 6 April 2016 
It will be paid with your State Pension. 
 
Inheriting extra State Pension or a lump sum 
You may inherit part of or all of your partner’s extra State Pension or lump sum if: 
• they died while they were deferring their State Pension (before claiming) or they had started claiming it after deferring 
• they reached State Pension age before 6 April 2016 
• you were married or in the civil partnership when they died 
Your partner’s National Insurance record and your State Pension 
 
The new State Pension is based on your own National Insurance record. 
If you paid married women’s or widows’ reduced rate National Insurance, you might be able to increase your new State Pension if you’re eligible. 
If you get divorced or dissolve your civil partnership 
 
The courts can make a ‘pension sharing order’ if you get divorced or dissolve your civil partnership. 
 
You’ll get an extra payment on top of your State Pension if your ex-partner is ordered to share their Additional State Pension or protected payment with you. 
 
Your State Pension will be reduced if you’re ordered to share your Additional State Pension or protected payment with your partner. 
 
 
 
 

More about the state pension on the Government Website 

Living and working overseas 

 
If you live or work in another country, you might be able to contribute towards that country’s State Pension scheme. 
 
If you’ve lived or worked in another country in the past, you might be eligible for that country’s state pension and a UK State Pension. 
 
To check if you can pay into or receive another country’s state pension, contact the pension service for that country. 
 
Claiming another country’s state pension 
Depending on where you’ve lived or worked, you may need to make more than one pension claim. 
 
European Economic Area (EEA) countries, Gibraltar and Switzerland 
You only need to claim your state pension in the last country where you lived or worked. Your claim will cover all EEA countries (including the UK), Gibraltar and Switzerland. You do not need to claim for each country separately. 
Countries outside the EEA (except Switzerland) 
You need to claim your pension from each country separately. 
Check with the pension service for the country where you’ve lived or worked to find out how to make a claim. 
 
Your UK State Pension if you’ve lived or worked abroad 
Your UK State Pension will be based on your UK National Insurance record. You need 10 years of UK National Insurance contributions to be eligible for the new State Pension. 
You may be able to use time spent abroad to make up the 10 qualifying years. This is most likely if you’ve lived or worked in: 
• the EEA 
• Gibraltar 
• Switzerland 
• certain countries that have a social security agreement with the UK 
 
Example 
You have 7 qualifying years from the UK on your National Insurance record when you reach State Pension age. 
 
You worked in an EEA country for 16 years and paid contributions to that country’s state pension. 
 
You will meet the minimum qualifying years to get the new State Pension because of the time you worked overseas. Your new State Pension amount will only be based on the 7 years of National Insurance contributions you made in the UK. 
You want to retire overseas 
You can claim the new State Pension overseas in most countries. 
 
Your State Pension will increase each year but only if you live in: 
• the EEA 
• Gibraltar 
• Switzerland 
• certain countries that have a social security agreement with the UK our new State Pension may be affected if your circumstances change. You can get more information from the International Pension Centre. 
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