State Pension Explained
A regular payment from the government when you reach State Pension age. The full new State Pension is £230.25 per week (£11,973 per year) for 2025-26. You need 35 years of National Insurance contributions to get the full amount.
What is State Pension?
The State Pension is a weekly payment from the government to people who have reached State Pension age (currently 66) and have enough qualifying years of National Insurance contributions. The "new" State Pension applies to men born on or after 6 April 1951 and women born on or after 6 April 1953. Those born earlier are on the "basic" State Pension, which has different rules.
How it works
You need a minimum of 10 qualifying years to receive any State Pension, and 35 qualifying years for the full amount of £230.25 per week. A qualifying year is one where you earned above the Lower Earnings Limit (£6,396 in 2025-26) or received NI credits (for example, while claiming Child Benefit for a child under 12). You can check your NI record online at gov.uk. The State Pension is taxable income but it is paid without any tax deducted. If your total income exceeds the Personal Allowance, HMRC collects the tax through your other income or tax code.
Real example
Margaret has 32 qualifying years of NI when she reaches 66. Her State Pension is 32/35 x £230.25 = £210.51 per week (£10,946.67 per year). This is below the Personal Allowance of £12,570, so she pays no tax on it. If she also has a workplace pension of £8,000, her total income is £18,947, and she would pay 20% tax on £6,377 (£1,275.40 in Income Tax).
Who does this affect?
Everyone who reaches State Pension age with at least 10 qualifying years. Around 12.7 million people currently receive the State Pension. The State Pension age is rising to 67 between 2026 and 2028, and further increases to 68 are planned. You can defer your State Pension to receive a higher amount later (1% increase for every 9 weeks of deferral).
HMRC source
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