Understanding the New State Pension
If you reached State Pension age on or after April 6, 2016, you are eligible for the new State Pension. For the 2025/26 financial year, the full rate is £230.25 per week. However, this is the maximum, and your personal amount is calculated based on your National Insurance (NI) record. Your record accounts for NI contributions made during paid employment and credited years for which you claimed certain benefits, such as Carer's Allowance or Child Benefit.
The role of National Insurance (NI) qualifying years
Your NI record is the single most important factor determining your State Pension. To receive any new State Pension, you need at least 10 qualifying years. For the full amount, you will typically need 35 qualifying years. If you have between 10 and 34 qualifying years, your pension will be a proportional amount. For example, if you have 25 qualifying years, you would get 25/35ths of the full rate.
- How NI qualifying years are counted: A qualifying year is a tax year (April 6 to April 5) where you paid or were credited with enough NI contributions.
- Filling gaps in your NI record: You can choose to make voluntary National Insurance contributions to cover any gaps in your record. This is especially useful if you had periods of low earnings, were self-employed with low profits, or lived abroad. You can normally only pay for the previous six years.
The complexities of ‘contracting out’
For many, the calculation is not as simple as counting qualifying years, due to a past practice known as 'contracting out'. Before the new system started, many people, particularly those in public sector jobs or with certain workplace pensions, were 'contracted out' of the Additional State Pension (State Second Pension). This meant you and your employer paid lower NI contributions.
- How contracting out affects your pension: If you were contracted out, a deduction is made from your new State Pension starting amount to account for the NI you didn't pay. This means even with 35 qualifying years, you might not receive the full £230.25 a week.
- Protection for your pension: Any amount of Additional State Pension you built up before April 2016 is protected and will be added to your new State Pension amount. This can sometimes result in a total weekly payment higher than the standard full rate.
How to get a State Pension forecast
The most accurate way to find out what you can expect is to get an official State Pension forecast from the government. This will show your NI record, an estimate of your current entitlement, and what you could get if you continue to work until State Pension age. It will also indicate if making voluntary NI contributions could increase your pension amount.
To check your forecast online, visit the official government website. It is the most reliable resource for personalized information regarding your entitlement. You can find it at: Check your State Pension forecast.
What if I reached State Pension age before April 2016?
If you reached State Pension age before April 6, 2016, different rules apply. You will be on the old State Pension system, which has two parts: the basic State Pension and the Additional State Pension.
Comparing old and new State Pension rules
| Feature | New State Pension (post-April 2016) | Old State Pension (pre-April 2016) |
|---|---|---|
| Full Rate (25/26) | £230.25 per week | £176.45 per week (Basic) + Additional |
| Qualifying Years (Full) | 35 years required | 30 years required for Basic |
| Contracting Out | Creates a deduction on the starting amount | Affected eligibility for Additional State Pension |
| Based On | Your individual NI record | A mixture of your own NI and sometimes a spouse's |
| Inheritance | Generally based on individual record, limited inheritance rules | More provision for inheriting from a spouse |
Other factors affecting your State Pension
- Deferring your pension: You don't have to claim your pension as soon as you reach State Pension age. By deferring it, you can increase your weekly payment for the rest of your life. The rate of increase is based on how long you defer for.
- Earning extra income: Your State Pension is not means-tested, so you can continue to work and earn an income without it affecting your payment. However, you will pay income tax if your total income exceeds the personal allowance.
Conclusion: Your state pension is unique
The final answer to how much state pension will I get at 66 is that it's a personal calculation based on your NI history. While a full new State Pension can be a significant part of your retirement income, relying on the full rate without checking your record is risky, especially if you were ever contracted out. Taking the time to check your official forecast will provide clarity and help you plan your finances more effectively for a secure retirement.
