Article What is the State Pension and how does it work?

Whether you’re planning to travel, take up some hobbies, or simply embrace being in your Second 50, the State Pension can be a regular and reliable part of your income to support your future needs and goals. Knowing how it works, as well as if and when you qualify, can help you plan for the future.

In this article, we've answered some common questions to help you understand the State Pension to help you navigate your retirement planning.

1. What is the State Pension?
2. When will I receive the State Pension?
3. How much money will I get from the State Pension?
4. Will I pay tax on my State Pension?
5. What's the triple lock?
6. How can I check my State Pension entitlement?
7. Can I defer my State Pension?
8. Is the State Pension enough to live on in retirement?

1. What is the State Pension? 

The State Pension is provided by the government and acts as the basis of retirement income for many people. Once you reach State Pension age, it’s usually paid into your account every 4 weeks until the end of your life. The exact date you get paid depends on your National Insurance number.

Given its importance to your retirement income, it’s a good idea to work out when you’re entitled to the State Pension, how much you’re going to receive, and whether it’s enough for you to live on. 

2. When will I receive the State Pension? 

You can claim the State Pension from when you reach your State Pension age – at the time of writing, this is currently age 66.¹ However, the age you can claim it is gradually going up. Between 2026 and 2028, the State Pension age will increase to 67 for those born on or after 6 April 1960. Similarly, between 2044 and 2046, the State Pension age is anticipated to gradually rise to 68 for individuals born on or after April 6, 1977.²

You can find out when you’re expected to receive your State Pension using the government’s Check your State Pension age tool. It’s likely to be different to the age you can access a workplace or personal pension. 

State pension changes before and after 6 April 2016 

The State Pension system was revamped on 6 April 2016.³ Those reaching State Pension age after this date will receive the ‘new State Pension’, which has transitional rules to make sure no one loses out by getting less under the new rules than they were entitled to under the old ones.

If you have a record of National Insurance Contributions (NICs) prior to 6 April 2016, this will be used to calculate a ‘starting amount’ (how much you’d get weekly) as part of your new State Pension. If your starting amount is less than the full new State Pension, then your NIC record after 6 April 2016 will be considered when calculating your final entitlement when you come to claim your State Pension. 

If your starting amount is already higher than the full new State Pension, the additional money will be paid on top of your pension. But any additional NICs you make after 6 April 2016 will not further increase your total. If you were contracted-out of the earnings-related Additional State Pension under the old rules, this will have been accounted for when calculating your starting amount.

To find out more about these transitional rules, visit the government’s guidance: Your State Pension explained.

3. How much money will I get from the State Pension? 

The ‘basic State Pension’

If you’re a man born before 6 April 1951 or a woman born before 6 April 1953 – you could be eligible to the full ‘basic State Pension’. This is £176.45 per week. To get this amount, you need to have enough National Insurance qualifying years. You can find out more about this on the government’s website.⁴

The ‘new State Pension’

The full new State Pension rate for those reaching State Pension age after April 2016 is currently £230.25 per week for the 2025/26 tax year.  But not everyone will necessarily get this amount, as how much you get is dependent on your National Insurance (NI) record, including NI credits.⁵ 

​​​How many years do I need to work to get the State Pension? 

You usually need at least 10 qualifying years of NI contributions or NI credits to receive any income from the new State Pension, and to get the new full State Pension amount you’ll need 35 qualifying years.⁵

The government define a qualifying year as one in which you were:

• Working and made National Insurance contributions
• Getting National Insurance credits, for example, if you were unemployed, ill or a parent or carer
• Paying voluntary National Insurance contributions

You might also qualify if you’ve lived or worked abroad or paid reduced rate National Insurance for married women.

You can use the government’s State Pension forecast to check how much you could get.

Having more than 35 qualifying years of NICS or NI credits won’t increase this amount. The rules are different for the basic State Pension – you can find out more on the government page The basic State Pension.

Can I increase my State Pension entitlement if I need to? 

If you don’t have a full NICs record – for example, because there are years when you’ve earned no or low income, were self-employed and didn’t pay NICs, or were living abroad – you might be able to increase your State Pension entitlement by making additional voluntary National Insurance contributions.

4. Will I pay tax on my State Pension? 

Any pension income, whether it’s State or private, is classed as taxable income. But if the State Pension is your only source of income, it’s likely this is under your personal allowance, which means you wouldn’t be taxed. The current standard Personal Allowance is £12,570. However, if you combine your State Pension with other income – for example from a job, a business initiative, or a private pension – you might go over your personal allowance and will pay tax accordingly.

To understand how taxes affect your pension in more detail, visit our article, Will I pay tax on my pension?  

This information is based on our understanding of current taxation law and HMRC practice, which may change. 

5. What’s the triple lock? 

The basic and new State Pensions normally increase in line with what is known as the ‘triple lock’ rule. This is the government’s guarantee that the new State Pension will increase by the highest of average earnings, the consumer price index or 2.5%. On April 6, 2025, the new full state pension went up by £472 a year. The increase was linked to wages, which rose by 4.1%.⁶

6. How can I check my State Pension entitlement? 

GOV.UK can provide some useful tools to understand your personal circumstances. You can get a forecast of the amount you’ll receive for your State Pension by visiting the State Pension forecast tool, and checking your NI record at Check your National Insurance record. 

7. Can I defer my State Pension? 

When you reach your State Pension age, you don't have to claim your State Pension straight away. Deferring could qualify you for higher payments when you do decide to start taking it. You can learn more about deferring your State Pension on GOV.UK. 

8. ​​​Is the State Pension enough to live on in retirement? 

The State Pension can provide a good basis for retirement, but it may not be enough to cover the type of lifestyle you might like to have when you stop working. The Retirement Living Standards suggest to have a moderate lifestyle a single person would need £31,300 a year, and a couple would need, £43,100.⁷

There are ways you could look to improve your long-term savings. For example, you could benefit from free money in the form of employer pension contributions if you pay into a workplace pension. You may also benefit from tax relief on your personal contributions. The value of any tax relief will depend on individual circumstances – to find out more read our guide to workplace pensions.

Ok, what should I do now? 

Once you know how much State Pension you’re likely to get and when – make a list of all the things you enjoy and want to continue doing, or even start in your retirement. If you’re unsure where to start, you could read our step by step guide on how to plan for retirement.

A common principle is to aim to contribute a percentage of your salary each month, equivalent to half your age when you first started a pension. Of course, if you have a workplace pension, your employer will contribute as well. Don’t worry if you can’t make big contributions – even a small amount can play its part in helping you get towards your goal.

This article isn’t intended as financial advice. You should speak to a financial adviser in the first instance if you need advice about your investments. If you don’t have a financial adviser, you can find one in your area by visiting MoneyHelper, or contact Origen Financial Services. 

Origen Financial Services Ltd is wholly owned by Aegon UK plc but operate independently to us.