New vs Old State Pension 2026/27: GBP 241.30/Week, Transitional Amount and Top-Up Guide

The New State Pension (from April 2016)

From 6 April 2016, the UK replaced the old tiered State Pension system with a single flat-rate "new State Pension". In 2026/27, the full new State Pension is GBP 241.30 per week (approximately GBP 12,548 per year, after the 4.8% April 2026 triple lock increase).

To qualify for the full amount, you must have 35 qualifying years of National Insurance contributions. A qualifying year is any year in which you have:

• Paid National Insurance contributions (as an employee, self-employed, or via voluntary Class 2/3 contributions)
• Received credits (e.g. during unemployment with Jobseeker's Allowance, approved training, or caring responsibilities)
• Been exempted from contributions (rare, and only in specific circumstances)

If you have fewer than 35 qualifying years, your pension is proportionally reduced. Each year is worth approximately 1/35th of the full amount, or roughly GBP 6.90/week per year in 2026/27. You must have at least 10 qualifying years to receive any State Pension. If you have 10-34 years, you receive a reduced pension. If you have fewer than 10 years and never reached State Pension age under the old system, you receive nothing.

The new State Pension is simpler than the old system because it removes the concept of an Additional State Pension and ties the entire amount to the 35-year requirement. This generally benefits people with a complete contributions record and no SERPS/S2P entitlement, but disadvantages those who built up substantial Additional State Pension before April 2016.

The Old State Pension (Pre-April 2016)

If you reached State Pension age before 6 April 2016, you remain on the old system. The old State Pension has two components:

Basic State Pension

In 2026/27, the basic old State Pension is GBP 184.90 per week (approximately GBP 9,615 per year). You need 30 qualifying years to receive the full basic amount. This is 5 years less than the new system -- a significant difference. If you have 29 years, you receive 29/30ths of the basic amount. The basic pension alone does not reach the personal allowance of GBP 12,570, so it is typically tax-free.

Additional State Pension (SERPS / S2P)

On top of the basic pension, you may have earned an Additional State Pension. This was built from:

• SERPS (State Earnings-Related Pension Scheme) -- earnings-linked Additional State Pension built between 1978 and 2002, based on a percentage of your earnings
• S2P (State Second Pension) -- replaced SERPS from 2002 and 2024, with a different calculation

A typical Additional State Pension might add GBP 50 to GBP 150/week to the basic pension, depending on your earnings history. The full old State Pension (basic + Additional) often totalled GBP 250--350/week for people with good earnings records.

The key difference from the new system: the old system gave you credit for earnings above the lower earnings limit (LEL) only if you contracted in. If you contracted out, you bought a private pension and gave up the Additional State Pension entirely.

Additional State Pension, SERPS and S2P

The Additional State Pension (sometimes called "second pension" or "top-up") was designed to provide earnings-related pension above the basic flat rate. It was built from your salary between the lower earnings limit (LEL) and the upper earnings limit (UEL), and the accrual was calculated as a percentage of that band.

SERPS (1978--2002): The original formula was 25% of earnings between the LEL and UEL, meaning that a full SERPS career could add 25% to the basic pension. Reforms in 1987 and 1995 reduced this to roughly 20% for most people, and further changes rebased it to reduce pension forecasts. Many people have modest SERPS savings (typically GBP 20--80/week).

S2P (2002--2024): Replaced SERPS with a different formula that included credits for caring, unemployment and some benefits, but still capped at the UEL. S2P is more generous in theory but less generous in practice because the UEL capped the credit (above which people pay no Additional State Pension contributions).

When the new State Pension system launched in April 2016, no one born after 5 April 1951 (i.e. reaching age 65 after April 2016) could accrue any new Additional State Pension. The system is now closed to new entrants. Anyone still working after April 2016 builds no SERPS/S2P, only National Insurance credits toward the 35-year requirement of the new system.

Contracting-Out Deduction

Between 1978 and 2016, you could contract out of the Additional State Pension. This meant you (and your employer) stopped paying National Insurance contributions toward SERPS/S2P and instead paid those contributions into an approved personal pension or occupational scheme. In theory, the scheme would give you better pension value than SERPS/S2P.

When the new State Pension launched in April 2016, anyone who had ever contracted out between 1978 and 2016 received a permanent reduction in their new State Pension entitlement. This reduction is called the Contracted-Out Deduction (COD), and the reduced amount is called the "protected payment" or "starting amount" under the new system.

The COD can range from a few pounds per week to GBP 40--50/week, depending on how long you contracted out and your earnings history. The calculation is complex and reflects a "non-underoccupancy" principle: you do not lose more in old Additional State Pension than you would have had in new State Pension. HMRC calculates this automatically -- you do not need to do anything -- but you can check your deduction on your State Pension forecast at gov.uk.

Key point: The COD is permanent and cannot be recovered. If you contracted out through an occupational scheme, you should have received improved scheme benefits as compensation, but this varies by scheme and is not guaranteed. If you contracted out through a personal pension and the scheme performed poorly, you may have lost out overall.

To check whether you had any contracting-out periods, look at your P60 payslips or contact HMRC. You can also see contracting-out deductions listed on your State Pension forecast online.

Transitional Protection

Some people fall between the old and new State Pension systems and are entitled to a transitional amount. These are people who reached State Pension age between 6 April 2016 and 5 April 2023, and people who reached age 62 before 6 April 2016 (depending on their sex and date of birth).

For these people, HMRC calculates two figures:

• New State Pension entitlement: Based on 35 years of qualifying NI contributions
• Old system entitlement: Basic State Pension + any Additional State Pension, less any contracting-out deduction, calculated as of their reaching State Pension age

The transitional amount is whichever is higher. If the old system gives you more (because you have a long SERPS/S2P record), you receive the old amount. If the new system gives you more (because you have few gaps and no contracting-out deductions), you receive the new amount. The difference between the two systems is made up by a "transitional add-on" -- a flat percentage uplift applied to your old-system entitlement to bring it closer to the new system level.

You do not need to do anything to claim the transitional amount; HMRC calculates it automatically and it is included in your State Pension forecast. However, the transitional protection is being phased out: people who reach State Pension age from 6 April 2024 onwards are no longer entitled to any transitional uplift and receive the straight higher of old or new, as calculated.

This transitional system protects people who would have lost out under the new flat-rate system, but it is complex and the add-on varies widely depending on your age and earnings history.

Topping Up Your Record: Class 3 National Insurance

If you have gaps in your National Insurance record, you can fill some of them with voluntary Class 3 National Insurance contributions before you claim your State Pension. Each Class 3 contribution buys one qualifying year, and is worth approximately 1/35th of the full new State Pension.

In 2026/27, a Class 3 contribution costs GBP 18.40 per week or approximately GBP 956 per year (if paid as a lump sum for a whole year). Each Class 3 year adds roughly GBP 6.90/week to your State Pension in 2026/27.

The break-even is the same for all Class 3 years because the cost and benefit scale proportionally. This means Class 3 is a reasonably good investment if you have a life expectancy of 75 or older (roughly age 75 for 70-year-olds), which is above the national average for someone reaching pension age.

Eligibility and deadlines

You can pay Class 3 contributions for any past tax year up to 6 years after the end of that year. This means you have until 5 April 2032 to pay for the gap year 2025/26, but you can no longer pay for any year ending before 5 April 2026. Some older gaps may still be payable if they fall within the 6-year window. Check your State Pension forecast at gov.uk to see which gaps are payable and the cost for each.

Critical deadline: The right to backdate Class 3 contributions to fill gaps before April 2015 closed on 5 April 2025. This was a one-time opportunity for people with long gaps and it is now gone. If you missed this deadline, you cannot fill those very old gaps.

You can pay Class 3 contributions online at gov.uk, or by phone through the National Insurance helpline. Payment is usually due within 3 months, but arrangements can be made for longer payment terms if you need them.

Spouses, Divorce and Bereavement

Marriage and civil partnership: If you are married or in a civil partnership and reach State Pension age before your spouse or partner, you cannot automatically inherit or add their contributions to your own. Each person\'s State Pension is based solely on their own NI record. However, if your partner has a low or no State Pension and you are eligible for certain older rules (reached pension age before April 2016), you may have a limited right to derive a pension based on their contributions -- but these rights are rare and complex.

Divorce: Under the new State Pension (post-April 2016), you cannot claim on your ex-spouse\'s contributions at all. Your pension is based purely on your own record. If you divorced before April 2016 and reached pension age before that date, you may have had limited rights to claim on your ex\'s pre-2016 earnings under the old system -- check your State Pension forecast or contact the Pension Service to confirm. If you divorced after April 2016 and have no entitlement of your own, you may still be entitled to a Pension Credit, which is a means-tested benefit rather than a State Pension enhancement.

Bereavement: If your spouse or civil partner dies, you do not inherit their unused State Pension entitlement. However, in rare circumstances, if they reached State Pension age before April 2016 and had unused Additional State Pension, you may have inherited it as part of their estate -- but this is uncommon. The main bereavement support comes from Bereavement Support Payment, a means-tested benefit paid for up to 18 months after the death.

For complex family situations, contact the Pension Service (0800 731 7898) or Pension Credit helpline (0800 99 1234) for specialist advice.

Triple Lock and Uprating

The State Pension is uprated every April under the "triple lock" mechanism. This means the new full State Pension increases by the highest of:

• Earnings growth (Average Weekly Earnings)
• CPI inflation (Consumer Price Index)
• 2.5% (a minimum floor)

In April 2026, the triple lock increased the State Pension by 4.8% (earnings growth was the highest of the three measures). In April 2027, the increase will be determined by 2026 earnings, inflation and the 2.5% floor -- this has not yet been confirmed.

The triple lock applies to the full new State Pension, the basic old State Pension, and the old Additional State Pension (SERPS/S2P). It also applies to the transitional amount if you receive one. This means the real value of your pension is protected against inflation, which is a significant advantage of State Pension over private pensions or annuities which have fixed purchasing power.

Note: The triple lock has been temporarily suspended in some years (e.g. 2022/23 when the government froze earnings to avoid large jumps in public spending). This suspension was temporary and the triple lock is currently in full effect from April 2026 onwards.

How to Check Your State Pension Forecast

You can check your State Pension forecast online at gov.uk/account (via your Personal Tax Account). You will need your National Insurance number and a UK address.

Your forecast shows:

• Your estimated State Pension amount based on current contributions
• Number of qualifying years you currently have
• Any gaps in your record (years where you did not work and have no credits)
• Effect of any contracting-out deductions
• Your State Pension age and projected start date
• Whether you can buy additional qualifying years with Class 3 NI, and the cost
• The cost-benefit of adding one or more Class 3 years, based on longevity assumptions

Check your forecast at least once every 5 years to ensure there are no gaps that can still be filled. If you spot errors (e.g. a year you worked but did not get a contribution), contact HMRC to have the record corrected. Corrections can take several months, so do not delay.

If you do not have online access or prefer to speak to someone, call the Future Pension Centre on 0800 731 7898. They can provide the forecast over the phone and discuss your options.

Official References

• State Pension -- GOV.UK
• Check your State Pension age -- GOV.UK
• Check your State Pension forecast -- Personal Tax Account (GOV.UK)
• Voluntary Class 3 National Insurance contributions -- GOV.UK
• How the new State Pension works -- GOV.UK
• HMRC National Insurance helpline