How does the new State Pension work?

Full answer

Introduced in April 2016, the "new" or single-tier State Pension replaced the old basic plus additional (SERPS/S2P) two-part system. For 2025/26 the full rate is £230.30 a week, £921.20 every four weeks, £11,975.60 a year. Each qualifying year (a year in which you paid or were credited with Class 1, 2 or 3 NI) adds 1/35 of the full amount, so 30 years yields about £197.40/week, 20 years £131.60. Fewer than 10 years pays nothing. People with significant pre-2016 NI may benefit from a transitional "starting amount" — the higher of the new rules or the old basic+S2P. Contracting-out before 2016 reduces the starting amount because you paid lower NI in exchange for occupational pension. Check your forecast at GOV.UK/check-state-pension. The triple lock (highest of CPI, average earnings or 2.5%) increases the headline figure each April. State Pension is taxable but paid gross — if your other income plus pension exceeds the £12,570 Personal Allowance, HMRC collects tax via PAYE on your private pension or via self-assessment. You can defer the State Pension to boost it by 1% for every 9 weeks deferred (about 5.8% a year).

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More answers

• What is the State Pension weekly amount in 2025/26?
• How many NI years do I need for a full UK State Pension?