Receiving your state pension

The government has confirmed the state pension age will rise to 68 between 2037 and 2039 – much earlier than originally planned between 2044 and 2046.

So if you were born between 6 April 1970 and 5 April 1978 you will have to remain in work for an extra year before potentially receiving your state pension.

As well as age, there are other circumstances which may determine how much you receive from the state pension.

We bring you an overview of the state pension and when you can receive it once you’ve reached state pension age.

Receiving state pension

How much you get depends on the amount of qualifying years on your national insurance record.

A qualifying year is a tax year in which you’ve paid, or have been credited with, enough national insurance contributions to qualify for the state pension.

You must have made NICs for at least 10 years to receive the state pension.

To get the full new state pension, you will need 35 qualifying years.  However, if you were contracted out before April 2016, you may not receive the full state pension.

On the other hand, you could get more than the full state pension if you have had over a certain amount of additional state pension under the old rules.

Basic and new state pension

There are 2 types of state pension – the basic state pension and the new state pension.

Which type of state pension you qualify for depends on when you reached your state pension retirement age.

For example, if you reach state pension age before 6 April 2016, you will qualify for the basic state pension under old rules and will receive £122.30 a week – assuming you made NICs for 30 years.

If you reach state pension age after 6 April 2016, you will be entitled to the new state pension which is worth £159.55 a week – if you made NICs for 35 years.

Steps to take now

Knowing what you are entitled to and when you will get it will help you plan your retirement. Here are some things to consider:

Check your state pension age online at www.gov.uk/state-pension-age

Find out how much you’ll receive by getting a state pension forecast. Visit www.gov.uk/check-state-pension for more information on doing this.

Find out if you have any gaps in your contributions or credits by checking your NI record. You can do this online or request a print copy. Visit www.gov.uk/check-national-insurance-record

Contact us

To find out more about receiving your state pension or to discuss further on how we can help plan your retirement strategy, feel free to get in touch with us today.