personal finance

State pension UK: How much is state pension? How can you increase the amount you get?


The state pension is a payment which a person may rely on as one form of income during their retirement. It can be claimed once the individual has reached state pension age – an age which is currently rising. In 2016, the state pension system changed, meaning some people will now claim the new state pension – rather than the basic state pension. The type that a person claims depends on when they were born, and their assigned sex.

Women born before April 6, 1953, and men born before April 6, 1951, can claim the basic state pension, while others will need to claim the new state pension, when the time comes.

The basic state pension

At the time of writing, the most that a person can currently get on the basic state pension is £129.20 per week.

It may be that they’re able to claim more money via the Additional State Pension – and the amount will depend on how many years a person paid National Insurance for, their earnings, whether they’ve contracted out of the scheme, and whether they’ve topped up their basic state pension between October 12, 2015 and April 5, 2017.

The Gov.uk website explains that a person may be able to increase the amount that they get – be that whether they aren’t eligible for the full amount, or whether they want to receive more than the full amount.

“You should get financial advice when planning your retirement income,” the website states.

In order to be eligible for a person to get the full basic state pension, one needs 30 years of National Insurance contributions.

Gov.uk point out that those with gaps in their insurance record may be able to make voluntary contributions to increase their pension.

It could be worth contacting the Future Pension Centre to find out if one will benefit from doing this, as well as seeking financial advice before making voluntary contributions.

Delaying or deferring one’s state pension could also increase the payment amount when it comes to claiming.

On the basic state pension system, this rises by one per cent for every five weeks that it is deferred.

It is paid with the regular state pension, and can be claimed on top of the full basic state pension amount.

A person who is married or in a civil partnership may also be eligible to increase their basic state pension to £77.45 per week – that’s if they are not eligible for the basic state pension or cannot get the full amount.

Those on low income may also be able to claim the means-tested state benefit: pension credit.

READ MORE: What is pension credit?

The new state pension

A person who is eligible to claim the new state pension can do so once they’ve reached state pension age.

Should a person have reached state pension age before April 6, 2016, they’ll get the basic state pension instead, Gov.uk says.

To get any amount of state pension, one will usually need 10 qualifying years on their National Insurance record.

The full new state pension is currently £168.60 per week, however the amount that is paid will depend on one’s National Insurance record.

A person is required to have 35 qualifying years for the new full state pension, if they do not have a National Insurance record before April 6, 2016.

A qualifying year includes being employed and earning over £166 per week from one employer, or for those who are self-employed, paying National Insurance contributions.

Gov.uk explains: “You might not pay National Insurance contributions because you’re earning less than £166 a week.

“You may still get a qualifying year if you earn between £118 and £166 a week from one employer.”

Those who are unable to work, such as due to illness or disability, or because they’re a carer or are unemployed, may be able to claim National Insurance credits.

Otherwise, it may be possible to pay voluntary National Insurance contributions.

Gov.uk also informs website users that people who paid married women’s or widow’s reduced rate National Insurance, may be able to increase their new state pension – if they’re eligible.

Should a person choose to delay claiming their new state pension, provided it’s deferred for at least nine weeks, then it will increase by nine per cent for every nine weeks of deferral.

READ MORE: What is tax allowance for over 65? The tax-free amount which pensioners can claim



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