The UK State Pension is a regular payment from the British government to people who have paid UK National Insurance Contributions and have now reached the State Pension Age.
How much State Pension you receive is based on how many qualifying years of National Insurance Contributions you have accumulated, including credits for time off without work, looking after a family or caring for a loved one.
Someone reaching State Pension Age who continues to work or receives other pension income can still receive the State Pension.
The full new State Pension for 2020-21 is £175.20 a week, but the amount you get is directly linked to your National Insurance Contribution record. From April 6th, 2016, men and women need 35 qualifying years for the full new State Pension and a minimum of 10 qualifying years for any payment. Anyone reaching State Pension Age now with more than 10 but less than 35 qualifying years picks up a pro-rata payment.
The calculation involves some simple arithmetic;
Assuming you reach State Pension Age in December 2020 and have 24 qualifying NIC years, the workings are:
- Full new State Pension weekly payment for 2020-21: £175.20
- Qualifying years: 24
- The pro rata payment formula is: (State pension amount divided by 35) x Number of qualifying years
- So, for the example, divide £175.20 by 35 years, then multiply by 24 years = £120.14
If you have missed some vital years that mean your state pension is less than expected, do not despair because you can buy a top-up to fill the gaps for any missed years. In order to do this, you can go direct to the HMRC website and fill in the application online. Alternatively, if you have any questions or you would like assistance topping up your pension, please use the contact button below;