State Pension gives older generations a solid foundation for their retirement to support them through later life. The new State Pension comes in at £175.20 a week for those who qualify, but amounts do vary depending on your work history.
The basic State Pension, for those on the previous type of pension, comes in at £134.25.
To get the full State Pension amount, you need to have at least 35 years of National Insurance contributions, and you need ten years to get any payment from the Government at all.
The State Pension is paid every four weeks in arrears into an account of your choice.
Many pensioners rely solely on their State Pension for income once they’ve stopped working, and it is estimated to make up around 43 percent of the average weekly income for a retiree, according to the Department for Work and Pensions.
The DWP applies a formula which takes into account the number of full NI years you have, contracted out periods and the additional State Pension you have built up, to work out how much you’re owed.
If you have been contracted out, or earning extra money, calculating how much you will get is much easier.
For example, someone who has 25 years of qualifying NI contributions, you would divide £175.20 by 35 and then multiply by 25 – making your new State Pension amount £125.14 per week.
The rise was announced in 2010 by then Chancellor George Osborne and will come into effect from October 6, 2020.
It’s the first rise that will affect men as well as women – and will go up from the current State Pension age of 65.
The State Pension age is expected to be increased again to 67 in 2028 and to 68 from 2044, although there are plans to bring this forward to 2037.
You should get a letter from the Pension Service no later than two months before you reach State Pension age.
If you don’t receive a letter, give the Pension Service a call on 0800 731 7898.
You can claim your pension online, over the phone or by post.
You will need to have your details to hand, and provide your National Insurance number.
After you’ve made a claim you’ll get a letter no more than a couple of weeks later about your payments and will be told how much you will receive and when.