State Pension: an overview

It's important not to confuse the State Pension age with your retirement age. Retirement age is the age you retire – and it can vary a lot depending on your financial situation.

The full level of the State Pension is £203.85 a week in the 2023/24 tax year, which produces an annual income of £10,600.20.

The amount you get might be lower, as your entitlement to State Pension depends on your National Insurance record. You need a minimum of ten years' contributions or credits to get any State Pension, and at least 35 years on your record to get the full amount.

In some cases, the amount you get might be higher. If your State Pension is more than £203.85 a week, you’ll have a ‘protected amount’, which is usually as a result of you building up an entitlement to Additional State Pension under the old system.

The State Pension will rise by 8.5% from April 2024. The new maximum rate will be £221. For more details on the coming changes to the State Pension, see our autumn statement blog.

It’s usually paid every four weeks in arrears. State Pension is taxable but paid before any tax is taken.

This means that although tax isn’t deducted from the State Pension, it will use up some of your tax-free personal allowance.

In 2023/24, the standard tax-free personal allowance is £12,570. This means that if you receive the full new State Pension, you’ll have £12,570 - £10,600.20 = £1,969.80 of your personal allowance remaining for other taxable income. Examples of other taxable income include from employment or a private or occupational pension. 

The State Pension is increased at the start of each tax year – on 6 April – usually by the higher of:

• the average percentage increase in prices (as measured by the Consumer Price Index for September the year before),

• the average increase in wages (measured in July the previous year)

• 2.5%. 

This is often referred to as “the triple lock”.

If your State Pension includes any Additional State Pension, this will always be increased in line with the average increase in prices (as measured by the Consumer Price Index).

For anyone reaching State Pension age after 6 April 2016, you need to have at least ten years’ National Insurance contributions or credits to qualify to claim your State Pension. You need to have paid or been credited with at least 35 years of National Insurance contributions to receive the full State Pension amount.

Each year gives 1/35th of the full amount, for example:

• 35 years’ gives 35/35 x £203.85 = £203.85 a week 
• 30 years’ gives 30/35 x £203.85 = £174.73 a week
• 10 years’ gives 10/35 x £203.85 = £58.24 a week.

You will need more than 35 years if you were contracted out of the Additional State Pension.

The State Pension is different from Pension Credit.

Pension Credit is a means-tested State benefit. It tops your income up to £201.05 a week for a single person or £306.85 for a couple, where it’s below these figures (2023/24 rates).

You won’t get your State Pension automatically - you have to claim it.

You should get a letter no later than two months before you reach State Pension age, telling you what to do. If you don’t get a letter, you can still make a claim.

There are various ways to claim:

• At GOV.UKOpens in a new window
• Contact the Pension Service
• You can complete a State Pension claim form from at GOV.UKOpens in a new window You can then send it to your local pension centre, which you find at GOV.UKOpens in a new window
• If you live in Northern Ireland, you can claim your State Pension at nidirectOpens in a new window
• If you live abroad, you can either contact the International Pension Centre on +44 19 1218 7777 (Monday to Friday, 9.30am to 3.30pm UK time) or return form IPC BR1 to the International Pension Centre. The form is at GOV.UKOpens in a new window and the return address is on the cover. You can also use this link if you’re already getting your State Pension and want to report a change of circumstances.

If you want to change the bank account your State Pension is paid into, contact the Pension Service on 0800 731 0469. If you live abroad, contact the International Pension Centre on +44 19 1218 7777. Both numbers are available Monday to Friday, 8.00am to 6.00pm UK time. 

Your first payment will usually be within five weeks of reaching State Pension age and will cover the period from when you reached State Pension age. You’ll usually get a full payment every four weeks after that.

The day your State Pension is paid depends on the last two digits of your National Insurance number.