The State Pension is the UK government’s contribution to your retirement income. It’s not based on how much you earn or save but on how many years of National Insurance (NI) contributions you’ve made. It provides a stable, inflation-linked income for life, but it is not — and has never been — designed to fully support someone on its own. For most people, it forms the foundation of retirement income, supplemented by personal or workplace pensions and other savings.
How the State Pension works
To qualify, you need at least 10 qualifying years of NI contributions. For the full new State Pension, introduced in April 2016, you need 35 qualifying years. A qualifying year usually means working and paying NI, receiving NI credits (e.g. if you’re unemployed, a carer or claiming certain benefits), or making voluntary contributions.
As of the 2024–25 tax year, the full State Pension pays £221.20 per week, or about £11,500 per year, and is usually paid every four weeks. It increases annually under the triple lock — whichever is highest out of inflation (CPI), average earnings growth or 2.5%.
Eligibility age
The current State Pension age is 66, but it is scheduled to rise. It will increase to 67 between 2026 and 2028, and then to 68 in later years, depending on life expectancy trends and government policy. The State Pension age is reviewed regularly and subject to political decisions, which means it may change again in the future.
You don’t get the State Pension automatically. You’ll receive a letter a few months before you reach State Pension age telling you how to claim it. If you don’t claim, the payments won’t begin, though you can choose to defer, which increases the amount you receive later.
How much you get
What you receive depends on your NI record. Fewer than 35 years? You’ll get a proportion of the full amount. For example, 20 years would get you roughly 20/35ths of the full weekly pension. You can check your personal forecast through the UK Government website.
If you reached pension age before April 6, 2016, you’re under the old State Pension system, which has different rules and is based on your earnings and contributions across your working life. You may also receive additional State Pension payments, such as the State Earnings-Related Pension Scheme (SERPS) or the State Second Pension (S2P), depending on your work history.
Deferring your State Pension
You can choose to delay taking your State Pension. For every nine weeks you defer, your payments increase by 1%, which equals about 5.8% extra for each full year you wait. You won’t get backdated payments, but the higher income continues for life, which can be useful for people who don’t need the money right away or want to minimise tax in early retirement.
However, there’s no bonus on deferred payments if you reached State Pension age on or after 6 April 2016 and want to take the money as a lump sum — only as increased income.
What affects your State Pension
Several things can impact your entitlement:
- NI gaps: If you’ve taken time out of paid work, you may have gaps in your record. These can be filled by claiming credits (e.g. for childcare, illness, or unemployment) or making voluntary Class 3 contributions.
- Contracting out: Some people in the old pension system paid lower NI rates and gave up rights to some parts of the additional State Pension. That history can reduce what you get under the new system.
- Earnings: Your State Pension amount does not directly relate to your salary. It depends only on your contributions or credited years.
- Pension sharing: Divorce doesn’t affect your State Pension (unless it includes an additional pension like SERPS), and it can’t be shared as part of a settlement under the new rules.
How it fits into your retirement planning
The State Pension is stable, inflation-protected and paid for life — which makes it one of the few predictable income sources in retirement. But by itself, it won’t provide enough to live comfortably for most people. It’s best seen as a baseline, not the full solution.
If your housing is paid off and your living expenses are modest, you might be able to survive on the State Pension alone — but even then, it likely won’t cover travel, unexpected costs or generous support for others. That’s why most financial plans include personal pensions, workplace pensions and tax-free savings alongside the State Pension.
Seen from Pension Gruber
Plenty of guests we speak to say the same thing: “I thought the State Pension would be enough — it isn’t.” The lucky ones prepared early, treated it as a starting point, and added their own savings on top. Others rely on it entirely and often have to watch every expense.
A steady £900 to £1,000 a month doesn’t go far unless the rest of your life is fully paid for. It covers groceries and bills, maybe a small trip once a year, but not much else. The comfort, freedom and extra years of leisure that many people associate with retirement usually come from other sources — not just what the government provides.
