The State Pension

The State Pension is a very important building block in planning your retirement. For many, it will be their main source of retirement income so it is crucial that you understand what you may be entitled to. Take a look at our detailed State Pension information and start planning for your retirement today.

What is it?

The State Pension is a regular payment made to you by the Government once you reach State Pension age. It’s based on your previous National Insurance (NI) contributions.

The new state pension came into force in 2016 and replaced the basic state pension

You are still eligible for the basic state pension if you are born before

Female 06/05/1953 and for Males 05/04/1951

For this blog we will concentrate on the new State Pension.

Who is eligible for the State Pension?

If you have 10 years or more National Insurance Contributions then you can claim a pension at State Pension Age

How much State Pension will I get?

If you were eligible to take State Pension in 2021/22 then the maximum you would be entitled to would be £179.60 per week. What you actually get will depend on your actual national insurance record.

The easiest way to check your entitlement is via the government gateway- Check your State Pension forecast – GOV.UK (, but you can also apply by post using a BR19 form, or call the helpline on 0800 731 0175

When will the State Pension be paid?

The days of receiving your Pension at 60 & 65 are long gone with plans to move the retirement age to 68 depending on your age. The link below will confirm your current State Pension age.

What is your date of birth? – Check your State Pension age – GOV.UK (

How is my State Pension worked out?

It can get a bit complicated if you made contributions before 2016, but the good news is HMRC will calculate this figure for you, and ensure you are receiving the correct pension depending on your age, your national insurance contributions and the years you contributed.

Contracted Out

When working out the ‘starting amount’ for your State Pension, a deduction will be made from both calculations if you were 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 normally you will have paid NI contributions at a lower rate because you were paying into a contracted out pension or some of your NI contributions were paid towards your private pension instead of additional State Pension. 

What if I am not on course for a full pension?

1. You could defer your pension, and for every year deferred you can get up to 5.8% per annum higher pension

2. If you are a carer and have gaps in your national insurance contributions you may be able to get carer’s credit.

3. You may be able to make additional voluntary contributions. These will depend on your circumstances – Voluntary National Insurance: Eligibility – GOV.UK (

If you are starting to plan for your retirement, it’s worth looking at what you might be eligible to receive from the state, anything you can do to improve it, and how this can work alongside any private or public sector pensions you might be saving into.

If you need more State Pension information or have any questions pension planning we’re here. Please do not hesitate to contact YorWealth.

Categories: Updates