The State Pension
The State Pension has changed for anyone who reaches State Pension Age on or after 6 April 2016.
From this date, a new State Pension replaced the Basic State pension and Additional State Pension (the earnings-related top-up that used to be called State Second Pension (S2P) or SERPS). For people who earned State Pension before 2016 but haven’t retired, there is a transitional arrangement where pensions may differ from the new State Pension quoted below, or the period to earn a full pension may be longer.
The new State Pension is currently worth £221.20 per week. To get the full amount, you need 35 years or more of national insurance (NI) contributions or credits. If you have less than 10 years of NI contributions, you won’t get any sort of State Pension.
If you were ever contracted out of S2P (so, if you were a member of Pace DB or another contracted-out pension scheme), then your new State Pension may be reduced, or the number of years to earn the pension may be increased to reflect the fact that you paid lower NI contributions during that time.
Find out how much State Pension you’d get: gov.uk/check-state-pension
Other State retirement benefits
When you retire, you may qualify for extra State retirement benefits. You should take these into account when you’re working out what your retirement income will be.
- Pension Credit tops up your weekly income if it’s below a certain amount. You can apply once you reach State Pension Age. Find out more at gov.uk/pension-credit. If you get Pension Credit, you can also get other help, such as a free or discounted TV licence and Council Tax.
- Winter Fuel Payment helps you afford to heat your home. If you were born on or after 25 September 1957, you may be eligible for a Winter Fuel Payment to help with fuel bills. To find out more, visit gov.uk/winter-fuel-payment
- Free eyes tests and free prescriptions are available if you’re over age 60. You may also be entitled to help with other NHS costs. Before paying for treatment, ask your dentist, optician or hospital staff for advice. For help with NHS costs, just show your benefit award letter or HC2 or HC3 certificate as proof.
- An older person’s bus pass for free travel can be applied for in England when you reach the State Pension Age, or age 60 if you’re in London, Scotland, Wales or Northern Ireland. To find out more, visit gov.uk/apply-for-elderly-person-bus-pass
Further benefits may be available. Visit www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/ for more information on what you may be entitled to.