State Pensions
State pensions are a very complex subject and this section is only intended to give an overview. If you would like more detailed information, please visit The Pension Service website.
The basic state pension
What you will get from the state depends on the number of 'qualifying years' you've built up throughout your working life.
To build up a qualifying year you pay national insurance contributions to the state. For each qualifying year you must be earning about certain minimum income levels set by the government. For the 2009/10 tax year the levels are £4,940 for an employee and £5,075 for a self-employed person.
You can also build up qualifying years even if you don't earn above the minimum income level. In these cases you are deemed to have paid national insurance contributions or are credited with qualifying years.
If you've been claiming benefits such as Jobseekers Allowance for example you'll have automatically been credited with national insurance contributions for the time you've been claiming.
How many qualifying years do you normally need?
This depends on whether you are male or female, although if you reach the state pension age on or after 6 April 2010 it is 30 for either sex - see the table below.
| Gender | Qualifying Years |
|---|---|
| Male | 44 |
| Female | 39 |
| Either sexes | 30 (if you reach the state pension age on or after 6 April 2010) |
To find out whether there are any gaps in your qualifying years or your national insurance contributions visit The Pension Service website.
When would I receive my basic state pension?
You normally receive your state pension at the state pension age. This depends on when you were born although changes are planned - see the table below.
| State Pension Age | Gender | Birthday | When is the change? |
|---|---|---|---|
| 65 | Male | Before / on 5 April 1959 | |
| Rising from 65 to 68 | Male | 2024-2046 | |
| 60 | Female | Before / on 5 April 1950 | |
| Rising to 65 | Female | 6 April 1950 - 5 April 1955 | 2010 - 2020 |
| 65 | Female | 6 April 1955 - 5 April 1959 | |
| Rising from 65 to 68 | Female | 2024 - 2046 |
You don't have to take your basic state pension when you reach the state pension age, you can defer it and get a higher amount or a one-off taxable lump sum. Contact The Pension Service website.
How much is the full basic state pension?
This changes each tax year and your individual circumstances may also affect how much you receive per week.For the 2009/10 tax year the full basic state pension for a single person is £95.25 per week. For couples the amount can vary depending on your circumstances.
You can get a forecast of your basic state pension at The Pension Service website.
Claiming your basic state pension
The Pension Service website
should send you a claim form four months before you reach the state pension age. If you haven't receive it three month before then you should print off a claim form from their website and send it to your local pension centre.What if I don't qualify for a full basic state pension?
You may be entitled to a percentage of the full basic state pension or other benefits - see the table below.
| Qualifying years | Basic State Pension | Reach State Pension Age | Other benefit |
|---|---|---|---|
| 25% | £22.68 - £95.25 | Before 6 April 2010 | |
| Less than 25% | None | Before 6 April 2010 | Over 80 Pension |
| Some qualifying years | 1/30th of the full amount for each qualifying year |
To find out more contact your local pension centre through The Pension Service website.
Planned changes to the state pension
Government changes from April 2010 aim to make the basic state pension fairer and more generous. One change is that the basic state pension will rise in line with earnings rather than prices - which should mean higher annual increases. Find out more.
