Pillar guide · State pension

State pension — the complete UK guide.

How much you'll get, what counts as a qualifying year, how to check your NI record, when filling gaps can be good value, and the bits many people miss about contracting out and tax.

By Pension Bible editorial team·Last reviewed 5 May 2026·15 min read

The new state pension — what you actually get

The UK state pension was overhauled in April 2016. If you reached state pension age on or after 6 April 2016, you're on the "new state pension" system. The full rate in 2026/27 is £241.30 per week, which works out to £12,548 per year.

That figure is increased each April under the "triple lock" — a political commitment to raise the state pension by whichever is highest: earnings growth, price inflation (CPI), or 2.5%. The triple lock has increased the value of the state pension over the last decade. Whether it will survive indefinitely is a matter of political debate, but it remains current policy.

To put the amount in context: £12,548 per year is roughly £1,046 per month. That's below the PLSA's "minimum" retirement living standard of around £14,400/year for a single person. The state pension is a foundation that many people build on with workplace and private pensions. The equivalent "annuity value" of the full state pension — what you might need to save in a private pension to buy a broadly similar guaranteed, inflation-linked income for life — can be several hundred thousand pounds depending on annuity rates and assumptions.

Qualifying years — how you build your entitlement

You build your state pension entitlement by accumulating "qualifying years" of National Insurance (NI) contributions. You normally need at least 10 qualifying years to receive any new state pension. If your NI record started after April 2016, you need 35 qualifying years for the full new state pension. If you had NI years before April 2016, transitional rules and any contracted-out history can mean your forecast is not a simple 35ths calculation.

A qualifying year is a tax year (6 April to 5 April) in which you have paid or been credited with enough National Insurance. There are several ways to get a qualifying year:

Employment. If you're employed and earn above the Lower Earnings Limit (£6,708/year in 2026/27), you automatically get a qualifying year. Earnings between the LEL and the Primary Threshold (£12,570) trigger a qualifying year even though no actual NI is deducted; earnings above £12,570 attract Class 1 NI from your employer.

Self-employment. If you're self-employed with profits at or above the Small Profits Threshold (£7,105 for 2026/27), you receive a qualifying year automatically — mandatory Class 2 NI was abolished from 6 April 2024, so there is nothing to pay. If your profits are below the SPT, you can still pay voluntary Class 2 at £3.65/week (£189.80/year for 2026/27), which is far cheaper than voluntary Class 3 at £956.80/year and can achieve the same state pension result if you are eligible.

National Insurance credits. You can receive NI credits (which count as qualifying years) without paying anything if you're claiming certain benefits. The main ones are: Universal Credit, Jobseeker's Allowance, Employment and Support Allowance, Carer's Allowance, and Child Benefit for a child under 12. The Child Benefit credit is particularly important — many parents (usually mothers) who take time out of employment to care for children receive NI credits through Child Benefit that protect their state pension entitlement. You must actually claim Child Benefit to get the credits, even if you opt out of receiving the payments due to the High Income Child Benefit Charge.

Voluntary contributions. If you have gaps in your NI record — years where you weren't employed, self-employed, or receiving credits — you can fill them by paying voluntary Class 3 contributions. This is covered in detail below.

Many people who work or receive credits from their early 20s to their mid-60s will accumulate enough qualifying years, but the forecast matters more than the headline count. People most at risk of shortfalls include those who spent significant periods abroad, those who were self-employed but did not build qualifying years, and those who took extended career breaks without claiming relevant credits.

State pension age — the current schedule

State pension age is the age at which you can start claiming your state pension. It's not the same as the minimum age for accessing private pensions (currently 55, rising to 57 in 2028).

The current schedule:

The increase to 68 was originally scheduled for 2044-2046, then accelerated to 2037-2039 by the Conservatives in 2017, then deferred again pending review. As of 2026, the government has not confirmed a specific timetable for the increase to 68. The most recent review recommended not confirming a date until the next scheduled review.

You can check your personal state pension age using the government's calculator or our state pension age calculator, which also shows how it interacts with your private pension access age.

Checking your NI record

Before making any decisions about voluntary contributions, you need to know where you stand. The government provides a free online service to check your NI record and get a state pension forecast.

Step 1: Check your NI record at gov.uk/check-national-insurance-record. You'll need a Government Gateway account (or you can create one). This shows every tax year since you turned 16, whether it's a full qualifying year, a partial year, or a gap.

Step 2: Get your state pension forecast at gov.uk/check-state-pension. This tells you how much state pension you're currently on track to receive, how many qualifying years you have, and how many more you could add.

Pay attention to the detail. Your forecast will show your "starting amount" (calculated at April 2016 based on your pre-2016 NI record), any qualifying years added since 2016, and any deductions (for contracting out — see below). The difference between your current forecast and the full state pension tells you how many gaps are worth filling.

Use our state pension forecast calculator below to model different scenarios — including the impact of filling specific gaps.

Filling gaps — when voluntary NI can be good value

If your NI record has gaps and you're not yet on track for the full state pension, paying voluntary contributions can be attractive. The key test is whether filling that specific year actually increases your state pension forecast.

The numbers in 2026/27:

• Cost to fill one year: £956.80 (Class 3 voluntary contributions at £18.40/week)
• Extra annual pension per year filled: approximately £359 (£6.89/week)
• Payback period: £956.80 / £359 = 2.66 years

In other words, if paying £956.80 to fill a gap increases your state pension by £359 a year, you recoup the cost after less than three years of receiving the higher pension. After that, the extra amount continues for life and is uprated with the state pension.

That is why voluntary NI is often good value when it increases your forecast. It is not automatic: some years do not increase entitlement because of contracting-out history, the 35-year calculation, or because you will build enough future years anyway.

Important rules on filling gaps:

• You can usually only fill gaps from the last six tax years. There was a temporary extension allowing people to fill gaps back to April 2006, but this window closed on 5 April 2025. From April 2025 onwards, the normal six-year limit applies.
• Filling a gap only increases your pension if that year improves your forecast. Having fewer than 35 years is not enough by itself, and having 35 years does not always mean you already get the full amount if you were contracted out before 2016.
• The cost of filling older years may differ from the current rate, as HMRC charges the rate that applied in the year you're filling (though for Class 3, this is usually similar).
• If you're self-employed and can pay Class 2 contributions instead (£3.65/week = £189.80/year), do that — it's far cheaper for the same qualifying year.

Our NI gap top-up calculator lets you model the exact cost and benefit of filling specific gaps in your record.

Contracted out — the deduction nobody expects

If you were a member of a workplace pension scheme that was "contracted out" of the State Earnings-Related Pension Scheme (SERPS) or the State Second Pension (S2P) before April 2016, your new state pension will include a deduction called the "Contracted-Out Pension Equivalent" (COPE).

Here's what happened: before 2016, the UK had a two-tier state pension — the basic state pension plus an earnings-related top-up (SERPS/S2P). Some workplace pension schemes (particularly defined benefit schemes in the public and private sector) were "contracted out" of the earnings-related part. In exchange, both the employer and employee paid lower National Insurance contributions. The deal was that the workplace scheme would provide a pension at least equivalent to what SERPS/S2P would have paid.

When the new state pension was introduced in 2016, the government calculated everyone's "starting amount" by taking the higher of what they would have received under the old system or the new system — but applied a deduction for any periods of contracting out. The logic: you already have a workplace pension that was supposed to replace the earnings-related part, so you don't get it twice.

The COPE deduction shows up on your state pension forecast as a reduction from the full rate. It can be substantial — some people who were contracted out for 20+ years see deductions of £50-£80 per week, meaning their state pension is significantly below the full £241.30.

What you can do about it:

• You cannot remove the COPE deduction — it reflects NI contributions that were genuinely lower during your contracted-out years.
• You may be able to build up additional qualifying years after 2016 to offset some of the deduction, up to the full new state pension rate.
• Your contracted-out workplace pension was intended to provide income in place of the additional state pension you gave up — check with your old employer or pension scheme what you're entitled to.

Contracting out is a common reason people's state pension forecasts are lower than they expect. If your forecast shows less than the full rate, check whether contracting out is the cause before assuming you have simple NI gaps to fill.

State pension and tax

The state pension is taxable income. This surprises many people. It is paid gross — no tax is deducted at source — but it counts towards your total taxable income for the year.

In 2026/27, the personal allowance is £12,570. The full new state pension is £12,548. That leaves only £22 of personal allowance for other income before you start paying tax. If you have any other income in retirement — a workplace pension, rental income, part-time work, interest on savings — you'll almost certainly exceed the personal allowance and pay income tax.

This creates a common retirement tax trap: people assume their state pension is "free" and don't account for the tax on their private pension withdrawals above the remaining personal allowance. A £5,000 private pension withdrawal on top of the full state pension would put you £4,978 into the basic-rate tax band, costing £995.60 in income tax.

How the tax is collected: HMRC can't deduct tax from the state pension directly (it's paid by DWP, not an employer). Instead, they adjust the tax code on your other income sources. If you have a private pension in drawdown, the drawdown provider will apply a tax code that collects the tax due on both the state pension and the drawdown income. If you have no other income source with a tax code, HMRC will send you a Simple Assessment bill.

Our income tax in retirement calculator shows exactly how the state pension interacts with other retirement income for tax purposes.

Deferring your state pension

You don't have to claim your state pension at state pension age. You can defer — delay claiming — and receive a higher amount when you eventually start.

The enhancement rate for the new state pension is approximately 1% for every 9 weeks you defer. That works out to roughly 5.8% per year of deferral. If you defer for one year, your state pension increases from £12,548 to approximately £13,276 — an extra £728/year for life.

Whether deferral makes sense depends on your circumstances:

Deferral may be worth considering if:

• You're still working and would pay tax on the state pension (deferring avoids the tax until you stop working)
• You have other income to live on and don't need the state pension yet
• You're in good health and expect to live well beyond average life expectancy (the longer you live, the more the enhanced amount pays off)

Deferral may be less attractive if:

• You need the income now
• You have health conditions that reduce your life expectancy — the breakeven point is roughly 17-18 years, so you need to survive that long after deferral ends to come out ahead
• You would invest the state pension rather than spend it, and expect investment returns above 5.8% per year

The old state pension (for those who reached state pension age before 6 April 2016) had a more generous deferral rate and also allowed you to take the deferred amount as a lump sum. The new state pension only offers the enhanced weekly rate — no lump sum option.

State pension as your retirement foundation

The state pension is the bedrock of most UK retirement plans, but it's not enough on its own. Here's how it fits into the bigger picture:

The "minimum" standard covers basic needs — food, housing, transport — but with little room for holidays, eating out, or unexpected costs. Most people aspire to at least the "moderate" level, which means building a private pension pot of roughly £250,000-£350,000 (enough to generate £15,000-£20,000/year through drawdown or annuity purchase, on top of the state pension).

The practical takeaway: know your state pension forecast, check whether NI gaps are worth filling, and then focus your planning on the gap between the state pension and the retirement income you actually want. Our retirement planning guide covers the full framework.

Married couples and state pension

The new state pension is based on your own individual NI record. There is no automatic entitlement based on your spouse's or civil partner's contributions — a significant change from the old system, where a married person could claim a basic state pension based on their spouse's record.

However, there are some inherited rights:

If your spouse or civil partner dies and reached state pension age before 6 April 2016: You may be able to inherit some of their additional state pension (SERPS/S2P). The amount depends on when they reached state pension age and the rules in place at that time. Up to 50% of their SERPS entitlement can be inherited.

If your spouse or civil partner dies and reached state pension age on or after 6 April 2016: You may be able to inherit their "protected payment" — the amount of new state pension above the full rate that they had earned through pre-2016 contributions. You cannot inherit the basic part of their new state pension.

Divorce: Your NI record is your own and isn't affected by divorce. However, pension sharing orders can apply to private pensions. The state pension itself cannot be shared through a court order, but periods of marriage can sometimes be used to substitute for gaps in your own NI record — the rules are complex and worth checking with the Pension Service.

Practical planning for couples: Both partners can check their individual NI records and forecasts. If one partner has gaps (often the one who took time out for childcare), filling those gaps through voluntary contributions may be good value if it increases their forecast. Ensure the parent claiming Child Benefit is the one who needs the NI credits — or use form CF411A to transfer credits to the other parent if they're the one with the gap.

FAQ

How much is the full state pension in 2026/27? The full new state pension is £241.30 per week, which is £12,548 per year. This is the maximum — you receive it if you have 35 or more qualifying years and no contracting-out deductions. Your actual amount depends on your NI record and can be checked at gov.uk/check-state-pension.

How many years of NI do I need for the full state pension? If your NI record started after April 2016, you need 35 qualifying years for the full amount. You normally need at least 10 qualifying years to receive any new state pension. If you have pre-2016 years, the transitional calculation means the result may not be a simple 1/35th per year calculation, especially if you were contracted out.

Is it worth paying voluntary NI contributions? If the year actually increases your forecast, it can be very good value. Paying £956.80 (Class 3 rate for 2026/27) can buy approximately £359 of extra annual pension for life, giving a simple payback period of under three years. But not every gap is worth buying, so check your state pension forecast first and use our NI gap top-up calculator for a rough model.

What is the contracted-out deduction? If you were a member of a workplace pension that was "contracted out" of SERPS or S2P before April 2016, your new state pension calculation reflects the lower NI contributions paid during those years. Your workplace pension was intended to provide replacement benefits. The effect can be significant — £50-£80/week for some people contracted out for many years.

Can I get state pension if I've lived abroad? You can claim UK state pension from abroad if you have enough qualifying years. However, the annual triple-lock increase only applies if you live in certain countries (the EEA, Switzerland, and countries with a reciprocal social security agreement). If you retire to a country without an agreement (including Australia and Canada), your state pension is frozen at the rate when you left — it never increases. This is a significant consideration for anyone planning to retire abroad.

When should I claim my state pension? You can claim from state pension age. Deferring increases the weekly amount by about 5.8% per year of deferral under the new state pension, but the breakeven point is roughly 17-18 years. Check your forecast with our state pension forecast calculator.

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Pension Bible is an editorial publication, not a financial adviser. The information in this guide is general guidance based on publicly available data. For personal recommendations about your specific pension, speak to an FCA-regulated financial adviser and check the FCA register.