A pension is a long-term investment. Its value can go down as well as up and could be worth less than was paid in. Laws and tax rules may change in the future. Your own circumstances and where you live in the UK will also have an impact on tax treatment.

 

What is the State Pension?

The State Pension is an amount paid to you every four weeks by the government once you reach the State Pension age. Not everyone can get the full State Pension and it might not be enough to live on by itself. 

That’s why it’s important to know how much your State Pension might be, when you can claim it and how it will stack up with your other retirement savings. We’ll break it all down for you here.

What's the current State Pension amount?

The current full State Pension amount is £221.20 a week for the 2024/25 tax year.

It’s worth keeping in mind that the amount you’ll get depends on your National Insurance record and how many qualifying years you have.

 

What this means for the current State Pension:

  • You'll usually need at least 10 qualifying years on your National Insurance record to get any State Pension.
  • You’ll need 35 qualifying years to get the new full State Pension if you do not have a National Insurance record before 6 April 2016.
  • It is possible in some circumstances to top up your National Insurance record. Your state pension forecast will highlight when this is possible.

There are many rules and things to think about when it comes to the new State Pension and your National Insurance history. The Government website  has more information that can help.

These rules don't apply to the basic State Pension. Please visit the Government website  For more information.

If you’re worried the State Pension isn’t enough

If you feel that the State Pension and your other retirement savings might not be enough for you, you might still have time to top up your pension plan or save in other ways.

How much do you need to retire?

Our handy retirement tool can help you break down how much money you might need for the lifestyle you want in retirement.

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Already with us?

Topping up your pension plan could help make a difference to your future. You can make a top up quickly and easily here.

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What is the current State Pension age?

The current state pension age is 66 for both men and women, however, this is rising to age 67 by 2028. When you are eligible will depend upon when you were born. Details can be found on the government timetable .

You can claim your State Pension even if you’re still working when you reach State Pension age. You can even decide to not take your State Pension straight away and defer it for a while. Deferring for a few years might mean you get more per week when you do come to claim your State Pension.

The government site  has more information on how deferring might impact your weekly amount.

Is the State Pension taxed?

The money you receive from the State Pension is subject to tax.

If you add up the income from your State Pension, other pensions and jobs and together it goes over the personal tax allowance, then you will have to pay income tax.

The personal allowance for the 2024/25 tax year is £12,570. Keep in mind that the allowance is reviewed for the start of each tax year. Laws and tax rules may change in the future. Your own circumstances and where you live in the UK will also have an impact on tax treatment. It’s up to you to make sure you pay the right tax.

MoneyHelper  has more information on how your State Pension is taxed.

How do I get my State Pension?

It isn’t automatically paid to you, once you reach State Pension age. You have to claim it from the government or let them know that you’re deferring your claim for a while.

The Government site  has more information on how to claim your State Pension.

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