The new State Pension
What is the new State Pension?
There were a number of changes made to the State Pension in 2016, resulting in two main pension schemes: the old State Pension and the new State Pension. This page will explain how the new State Pension works.
The new State Pension is a regular payment from Government that most people can claim in later life.
You can claim the new State Pension at State Pension age if you have at least 10 years National Insurance contributions and are:
- a man born on or after 6 April 1951
- a woman born on or after 6 April 1953
If you were born before these dates you will get the old State Pension instead.
How much State Pension will I get?
The full amount you can get under the new State Pension is £241.30 per week (in the 2026-27 financial year). However, you may get more or less, depending on your National Insurance (NI) record.
How is my pension amount worked out?
If you have already built up NI contributions under the pre-2016 system, you’ll be given a ‘starting amount’. This will be whichever of the following that’s higher:
- Either the amount you would have received under the pre-2016 system including basic and additional pension
- Or the amount you would get if the new State Pension had been in place at the start of your working life.
If you’re 'starting amount' is more than the full amount of the new State Pension (see above section), any amount over that level will be protected and paid on top of the full amount when you start to claim the new State Pension.
If your starting amount is less than the full amount of the new State Pension you may be able to build up a higher level of new State Pension through contributions and credits you make between 6 April 2016 and when you reach State Pension age.
What happens if I was in a ‘contracted out’ scheme?
When working out the ‘starting amount’ for your State Pension, a deduction will be made if you have been in a ‘contracted out’ personal or workplace pension scheme – for example, if you have been a member of a public sector pension.
The deduction is made because, in this case, you'd normally have paid NI contributions at a lower rate because you were paying into a contracted out pension or because some of your NI contributions were paid towards your private pension instead of additional State Pension.
What happens if I made no NI contributions before 6 April 2016?
If you made no NI contributions before April 2016, your State Pension is calculated entirely under new State Pension rules. You usually need at least 10 qualifying years in your NI record to get the new State Pension.
Your new State Pension is more likely to be calculated in this way if you became a resident of the UK after 2015.
If you have:
- at least 35 years of NI contributions, then you may get the full amount
- between 10 and 34 years of contributions, then you'll receive a proportion of the full amount
- less than 10 years of NI contributions, then you aren’t usually eligible for the new State Pension.
Can I use my partner’s contributions?
The State Pension is based on your own contributions and in general you will not be able to claim on your spouse or civil partner’s contributions at retirement, or if you are widowed or divorced. However, if you're widowed you may be able to inherit part of your partner’s additional State Pension that was already built up under the pre-2016 rules.
If you are a woman who paid the reduced rate ‘married woman’s contributions’, you may be able to use these contributions towards the State Pension.
Can I claim my State Pension and keep working?
Yes, you can. However, here are some things you should bear in mind:
Any money you earn won’t affect your State Pension, but it may affect your entitlement to other benefits such as Pension Credit, Housing Benefit or assistance from the Council Tax Reduction Scheme.
Be aware that State Pension is taxable, so when added to your earnings it may put you into a higher tax band.
When you reach State Pension age, you won’t have to pay National Insurance anymore, even if you keep on working.
When and how can I claim my State Pension?
When to claim
You can claim your State Pension up to 4 months before you reach State Pension age. However, it doesn't start being paid until you reach State Pension age.
If you claim after you reach State Pension age, then you can request to backdate your State Pension. The maximum period of backdating is 12 months, but a claim can't be backdated to a date before you reached State Pension age.
How to claim
You won’t normally receive your State Pension automatically. You should get an invitation letter from the Pension Service 4 months before you reach State Pension age, explaining how to claim your State Pension.
If you haven't received an invitation letter with 2 months to go, call the Pension Service on 0800 731 7898.
You can claim your pension online, over the phone or by post. You'll need to provide your National Insurance number when you make a claim and you may need to provide evidence of your date of birth. See the GOV.UK website for further details on your options to claim (or if you don't have internet access, you can call the Pension Service on the number given above).
What should I do next?
For more information call Age Cymru Advice on 08000 223 444