The UK state pension provides a reliable source of income for retirees, helping to support living expenses during retirement. Whether you are approaching retirement age or planning ahead, it is important to understand how the state pension works, who is eligible, and how to maximise your benefits. This guide covers everything you need to know about the UK state pension, from eligibility criteria to the application process and ways to boost your pension.
1. What is the UK state pension?
How the state pension works
The UK state pension is a regular payment from the government that you receive once you reach the state pension age. It is based on your National Insurance (NI) contributions made throughout your working life. The pension is intended to provide a basic income to help cover living costs during retirement.
- There are two types of state pension: the new state pension (for those reaching pension age on or after 6 April 2016) and the basic state pension (for those who reached pension age before 6 April 2016).
- The new state pension offers up to £203.85 per week (as of 2025/26), while the basic state pension is up to £156.20 per week.
For more on managing your income in retirement, read How to maximize your retirement income.
2. Eligibility for the state pension
Who is eligible?
To receive the UK state pension, you need to have reached the state pension age and have paid or been credited with National Insurance contributions. The current state pension age is 66, with plans to rise to 67 by 2028.
- You need 35 qualifying years of NI contributions for the full new state pension.
- Those with between 10 and 35 years of contributions will receive a proportion of the full amount.
How to check your state pension
You can check your state pension forecast on the Gov.uk website, which shows how much pension you could receive and whether you can increase your pension by paying voluntary NI contributions.
- The forecast tool also helps you see if there are gaps in your NI record that you could fill.
- Consider paying Class 3 voluntary NI contributions to boost your pension if needed.
3. How to claim your state pension
When and how to apply
You do not receive the state pension automatically; you need to apply for it. You should receive a letter from the Department for Work and Pensions (DWP) 4 months before you reach the state pension age, explaining how to claim.
- You can apply online, by phone, or by post.
- It is advisable to apply early to avoid delays in receiving your pension payments.
Payment options
The state pension is paid every four weeks into your bank, building society, or credit union account. You can choose to be paid weekly if needed.
- The payment is made in arrears, meaning you are paid for the previous four weeks, not in advance.
- Payments are made on a specific day of the week, depending on the last two digits of your National Insurance number.
4. Ways to increase your state pension
Defer your pension
If you defer taking your state pension, your weekly payments increase when you eventually start to receive it. For every 9 weeks you defer, your pension increases by 1%, which works out as a 5.8% increase per year.
- Deferring could be beneficial if you do not need the income immediately.
- This option is particularly useful if you expect to live longer and can afford to delay payments.
Claim pension credit
If your income is low, you might be eligible for Pension Credit, a benefit that tops up your weekly income. Pension Credit can also provide access to other benefits, such as housing support, council tax reductions, and free NHS services.
For more information, see A guide to Pension Credit: are you missing out on benefits?.
Fill gaps in your NI contributions
If you do not have enough qualifying years to receive the full state pension, you can buy back missing years by paying voluntary NI contributions. You can backdate contributions for up to 6 years.
- Calculate whether the cost of contributions is worth the increase in pension payments.
- It is a good idea to seek financial advice before making this decision.
Conclusion: Making the most of your UK state pension
The UK state pension is a valuable resource for retirees, providing a stable income stream during retirement. By understanding the eligibility requirements, how to claim, and ways to increase your payments, you can ensure you are getting the maximum benefits available. Stay informed and consider seeking financial advice if you need help navigating pension options and strategies.
For more retirement planning tips, explore other articles on our Retirement Pasta blog.
