How much is the state pension & what age will I get it?

The UK government provides a state pension to all eligible people once they reach the state retirement age.

However, you should think of this as a top-up to your other income, as on its own, it is usually not enough to live on.

We reveal what the state pension is and how much you might be entitled to.

What is the state pension?

The UK's new state pension is paid weekly to everyone who qualifies for it.

Read on to find out how you can qualify, how much you could get and when you can claim it.

How many qualifying years do I need for the new state pension?

You are eligible for the state pension provided that you have at least 10 qualifying years on your National Insurance (NI) record.

A qualifying year means a year in which you earn over the lower earnings limit as a salary (dividends don't count).

How much you receive will also depend on how many qualifying years you have.

You need at least 35 qualifying years to pocket the full amount.

It’s also worth flagging that you can get NI credits even if you don’t pay NI if you meet certain criteria.

Do I need to pay national insurance contributions to qualify for the state pension?

To build up qualifying NI years, your annual salary must be at or over the lower earnings limit (currently £6,396).

However, you don’t start paying NICs until you take a salary over the NIC primary threshold (currently £12,570).

So if your salary falls between these two figures, you’ll build up qualifying years without paying any NI.

For this reason, some company directors deliberately set their salaries at a low level, and take the rest of their income as dividends.

How much is the state pension in the UK?

If you qualify for the full amount of the new state pension, you will receive £221.20 per week, or £11,502.40 a year.

Each year, the state pension increases in line with the highest out of inflation, average earnings or 2.5%. This is known as the 'triple lock.'

If you have fewer than 35 qualifying years, the amount you receive will be reduced proportionally.

If you reached the state pension age before 6 April 2016, you will receive the old state pension instead, which is a different amount.

What age do I get my state pension?

The state pension age is currently 66 for both men and women but may be different depending on when you were born.

Answering the question ‘When will I get my state pension?’ means working it out from the year (and often the month) in which you were born.

You can check your state pension age on the government’s website.

Between 2026 and 2028, the state pension age will begin to further increase to age 67.

Can I still work and claim the state pension?

Yes, you can carry on working and earning once you’ve passed state pension age and begun to draw your pension, but you’ll no longer pay NI after this point.

Just remember that the state pension still counts as income, so could be subject to tax depending on how much other income you continue to earn.

How much can I earn while taking the state pension?

You can earn as much as you like and continue to qualify for the state pension.

However, you will pay tax on any income above the annual personal allowance.

For example, the full new state pension gives you an annual income of £11,502.40. The personal allowance is £12,570 so you could earn up to £1,067.60 a year before you have to pay any tax at all.

If you were to earn £10,000 a year while drawing the state pension, your taxable income would be £8,932.40, and you’d have a tax bill of £1,786.48. However, you wouldn’t pay any NI contributions.

If you’re still earning and drawing the state pension, talk to a financial adviser to make sure you’re not wasting too much of your state pension paying taxes.

It may make sense to scale back your hours or find another solution.

Is there a special state pension for married couples?

There are no longer any special state pension arrangements for married couples.

Each partner in the marriage or civil partnership needs to build up their own state pension through qualifying years, and cannot benefit from their spouse’s state pension, which will cease when that person dies.

If one spouse does not work because they are caring for children aged under 12 and are registered for child benefit (even if they don’t receive it), then they can accrue Class 3 NI credits for these years.

These credits will build up qualifying years for the state pension.

Alternatively, anyone who isn’t employed can pay voluntary NI contributions to build up qualifying years.

What happens to my state pension if I move abroad?

If you live abroad or are planning to move abroad and want to claim the state pension, you’ll need to contact the International Pension Centre.

You can then arrange for your state pension to be paid directly into a bank account, either located in the UK or in the country where you’re living now.

You can choose to be paid every four or 13 weeks.

Should I wait before taking my state pension?

If you choose not to take your state pension from the state pension age, the amount you’re entitled to will gradually rise.

For every nine weeks you defer, you'll receive a 1% uptick. Over the course of a year, the rise comes in at just under 5.8%.

If you reached state pension age before 6 April 2016 and defer, you’ll receive a different boost.

You might choose to do this if you are still working and don't want to lose state pension money in tax.

However, this is something to discuss with your financial adviser, as it may still be in your best interests to take the money and bank it (or invest it) even if you don’t need to spend it yet.

Try our pension calculator to see how much retirement income you might receive from your private pension and what you can do to boost it.

Get expert financial advice

The state pension provides a valuable income stream for retirees, but it's essential to plan and understand how it fits into your broader retirement strategy.

With eligibility based on national insurance contributions and the possibility of deferring to increase your future payments, it's crucial to stay informed.

Unbiased can match you with a financial adviser who can provide expert financial advice so that you can make informed decisions about your state pension and overall retirement planning.