State Pension Guide | Eligibility, Payments & Planning

You’re probably aware of the State Pension. But let’s face it, a lot of us are in the dark about what it really means for us and our wallets. The State Pension is a key source of income for millions retiring across the UK and we’re here to break down how it all works.

The answers to questions such as “Am I eligible?”, “How much can I get?” are not as straightforward as you may think and it is essential that you are up to date on all the latest information and can get peace of mind as you begin planning your retirement. My Pension Expert is always on hand to help you maximise your financial potential.

In this guide, we’ll break down who qualifies, how much you could receive, and how to make the most of your finances.

How much State Pension could you receive?

The amount you’ll receive depends largely on how much National Insurance (NI) you’ve paid throughout your working life. These years are accumulated based on your earnings, or in some cases, credits for specific life situations like raising children or caring for a loved one.

The more years of contributions you have, the closer you’ll get to the full amount. You need a minimum of 10 years to receive anything. If you have fewer than 35 qualifying years, your pension will be reduced in proportion to the number of qualifying years you have.

If you’re unsure of how many qualifying years you’ve built up or if there are gaps in your NI record, you can check your National Insurance record using the government’s online tools. If you’re interested in finding out more about your pension prospects now, the government website offers a handy forecasting tool which can show you your pension forecast. You’ll need a Government Gateway account to access this feature.

Eligibility

Basic State Pension

This applies to people who reached the required age before April 6, 2016

You typically need at least 30 qualifying years of National Insurance contributions

The basic rate amount is fixed

As of 2025, the rate is £176.45 per week

The rate you receive is dependent on your accumulated years

New State Pension

This applies to individuals who reach the required age on or after April 6, 2016

To receive the full pension, you’ll need to have 35 qualifying years of contributions

Pension rate is more flexible due to inflation rates and the ability to top it up

As of 2025, the rate is £230.25 per week

If you have less than 35 years, you’ll receive a reduced amount

Let’s breakdown your pension options today

Delaying your State Pension

If you don’t need the income immediately, you can choose to defer your claim. This means delaying your claim to a later date, which results in higher monthly payments for each year you defer, your weekly pension can increase by up to 5.8%.

To defer, simply inform HMRC that you’re not ready to claim yet and that you want to defer your State Pension. When you decide to start receiving your pension, your deferred payments will be backdated.

Deferring could be a smart move if:

You don’t want income straight away and are happy to wait to receive it
You want to increase the monthly payments for the future
You’re still working and receiving income

You can defer your payments for as long as you like. There is no limit to how long you can delay claiming it, but there are considerations to take into account. Once you start claiming your pension, you can’t go back to defer it again. Therefore, you should carefully consider your circumstances, and our team can help you make the right decision for you.

Man on laptop ready to find out more about his optimal retirement strategy.

Claiming your State Pension

When you reach State Pension age, you’ll be able to begin claiming. HMRC will send you a letter shortly before your eligible birthday (typically around 2 months before you turn the required age) with important information.

This letter will include a unique reference number and details on how to submit your claim. You can claim online, by phone, or by post, and you’ll need to provide your National Insurance number and other personal details.

It’s important to start the process well in advance, as it can take several weeks for your claim to be processed and for your first payment to arrive. Once your claim is approved, your payments will typically be made every 4 weeks.

If you decide to retire abroad, you can claim your State Pension on the government website.

What information do you need to provide?

To start claiming your pension, you will need to provide specific details.

You’ll need:

the date of your most recent marriage, civil partnership or divorce
the dates of any time spent living or working abroad
your bank or building society details
the invitation code from the letter about getting your pension

If you are unsure about your qualifications or need further support, you can speak to our team of independent financial advisors in a no-obligation consultation.

Frequently Asked Questions

Can I claim State Pension if I’ve worked or lived abroad?

Yes, you can still claim the UK State Pension, but:

You usually need at least 10 qualifying years of UK National Insurance (NI) contributions.
These years don’t have to be in a row.
If you’ve worked in certain countries abroad, your time there might count too, thanks to social security agreements (like with the EU, EEA, or some Commonwealth countries).

It’s best to contact the International Pension Centre to check your exact entitlement.

Will my State Pension be taxed?

Yes, the State Pension is taxable, but:

It’s added to your total income for the year.
You won’t pay tax just on the State Pension unless your total income (including private pensions, wages, or other income) goes over the personal allowance (£12,570 for 2025/26).
Tax isn’t taken automatically from your State Pension, so if it pushes you over the threshold, HMRC may collect the tax through your other income or ask for it directly.

Can I still work whilst claiming State Pension?

Yes, you can work and claim the State Pension at the same time.

There’s no upper age limit for working.
Your State Pension won’t be reduced, no matter how much you earn.
However, your income could be taxed if your combined earnings and pension income go over your personal allowance.

Many people choose to work part-time during retirement, and it’s completely allowed.

What happens to my State Pension when I die?

When you die:

Your State Pension stops being paid.
A spouse or civil partner might be able to inherit some extra payments, depending on your:
National Insurance record, Date of birth, and whether you’re under the old or new State Pension system.

They may get:

An increase to their own State Pension.
A lump sum, in some cases (e.g. if you deferred your pension and hadn’t started claiming it).

Your family should notify the Pension Service after death. This is usually done through the Tell Us Once service.

Next steps

Talk to a member of our team today to weigh up your options about State Pension and let us guide you in making the right decision based on your current financial circumstances and your retirement needs.

If you are new to pensions and want more information before getting in touch, it’s wise to checkout our video about our services and how we can best help you.