You have to pay National Insurance contributions for 30 years to receive the full basic State Pension. In certain instances, you may have received National Insurance credits instead of paying National Insurance contributions to protect part or all of your National Insurance record
State Pensions Part 10: Pension Credit
What is Pension Credit? Pension Credit was introduced in 2003 to help pensioners on low incomes who have some savings. It is paid to more than 2.5 million people. There are two elements to Pension Credit: Guaranteed credit Savings credit Guaranteed Credit The age at which you can qualify for Guaranteed Credit is linked [...]
State pensions Part 9: National Insurance Credits
If you fall into certain categories you should receive National Insurance weekly credits for the basic State Pension and the Second State Pension (but not its predecessor the State Earnings Related Pension Scheme)…
State pension Part 8: State Pension Age
When is the State Pension Age changing? In 1926, when the State Pension Age was first set at 65, three out of five people died before they were able to claim a pension! At the moment, the State Pension Age is still 65 for men (less for women), but the retirement age will change in [...]
State pension Part 7: Late retirement
What happens if I delay taking my State Pension? If you decide to retire later than the State Pension Age, or simply want to delay taking your State Pension, you have the choice of taking a one-off cash payment or a higher pension instead. How much you receive depends on whether you choose the cash lump [...]
State pension Part 6: State Pension Forecast
Find out how much your State Pension is worth. The Pension Service will provide a forecast of your State Pension when you reach State Pension Age. The forecast will tell you: How much you are entitled to based on the amount you’ve paid in National Insurance contributions so far, plus How much you should receive [...]
State pensions Part 5: Calculating the additional State Pension
How can I calculate the additional state pension? The short answer is ‘not very easily’! There are two main elements to the additional State Pension: The State Earnings Related Pension that operated from April 1978 through to April 2002 and the Second State Pension that came into effect in April 2002. The State Earnings Related [...]
State pensions Part 4: Do State Pensions increase each year?
The basic State Pension is increased each year by the higher of the rise in earnings, prices or 2.5%. This approach should raise the standard of living of people in retirement over time. Before April 2011, the basic State Pension increased in line with the Retail Price Index. However, the change does not apply to [...]
State pensions Part 3: What’s the additional State Pension?
As well as the basic State Pension, you may qualify for an additional pension from the state. This will increase the overall amount you receive from the State when you retire. This scheme is called the State Second Pension and was introduced in April 2002. Before that it was known as the State Earnings Related [...]
State pensions Part 2: The Basic State Pension
What will the basic State Pension give me? For most people, the basic State Pension is the core of their income in retirement. Unfortunately, it’s not as generous as it used to be, but it’s still an important benefit. The maximum amount payable each week is £107.45 if you are single or £171.85 for a [...]
State pensions Part 1: What you are entitled to
The old age pension was introduced in 1909. In those days, up to five shillings a week was paid to men and women over age 70. These days the scheme is a little more generous! There are two main parts to the State Pension: The basic State Pension and the additional State Pension If you [...]