A pension is a long term investment. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.
The value of the investment can go down as well as up and you may not get back as much as you put in.
Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.
State Pension is paid to entitled people who claim it having reached State Pension age. It is based on National Insurance (NI) contributions and it is made up of different elements.
Current State Pension age
For men, the current State Pension age is 65.
For women, the current State Pension is increasing from 60 to 65 from April 2010. This affects women born on or after 6 April 1950
Proposal to increase State Pension age to 66
The government has published new proposals for increasing the State Pension age to 66.
Women's State Pension age will increase more quickly to 65 between April 2016 and November 2018.
From December 2018 the State Pension age for both men and women will start to increase to reach 66 by April 2020.
These proposals affect you if you are one of the following:
- a woman born on or between 6 April 1953 and 5 April 1960
- a man born on or between 6 December 1953 and 5 April 1960
These proposed changes are not yet law and still require the approval of Parliament.
People not affected by these proposed changes
These proposals do not affect you, if you are one of the following:
- a woman born on or before 5 April 1953
- a man born on or before 5 December 1953
- a man or woman born on or after 6 April 1960
The current law already provides for the State Pension age to increase to:
- 67 between 2034 and 2036
- 68 between 2044 and 2046
However, the government is considering how the State Pension age should be changed in the future. This may mean the timetable for increases to 67 and 68 will be revised. The government will bring forward proposals in due course. Any change to the timetable would require the approval of Parliament.
Inheriting additional State Pension
If your spouse or civil partner dies, you may be able to inherit some of their additional State Pension.
|Maximum SERPS pension that a man's wife or civil partner can inherit|
|Man's date of birth||Maximum % of SERPS pension that the
man's wife or civil partner can inherit
|5 October 1937 or before||100 per cent|
|Between 6 October 1937 and 5 October 1939||90 per cent|
|Between 6 October 1939 and 5 October 1941||80 per cent|
|Between 6 October 1941 and 5 October 1943||70 per cent|
|Between 6 October 1943 and 5 October 1945||60 per cent|
|6 October 1945 and after||50 per cent|
|Maximum SERPS pension that a woman's husband or civil partner can inherit|
|Woman's date of birth||Maximum % of SERPS pension that the
woman's husband or civil partner can inherit
|5 October 1942 or before||100 per cent|
|Between 6 October 1942 and 5 October 1944||90 per cent|
|Between 6 October 1944 and 5 October 1946||80 per cent|
|Between 6 October 1946 and 5 October 1948||70 per cent|
|Between 6 October 1948 and 6 July 1950||60 per cent|
|6 July 1950 and after||50 per cent|
If you are a married woman and cannot get a full basic State Pension because you do not have enough qualifying years based on your own National Insurance (NI) contributions, you may be able to get a State Pension based on your husband's NI contributions. You can only do this if he is already getting a basic State Pension and you are aged 60 or over.
If you are a widow, widower or surviving civil partner, you may be able to get a basic State Pension based on your late husband's, wife's or civil partner’s NI contributions.
If you are divorced or your civil partnership has been dissolved and you cannot get a full basic State Pension based on the qualifying years from your own NI contributions, you may be able to get a basic State Pension based on your former husband's, wife's or civil partner's NI contributions. They do not need to be getting their State Pension.
If you carry on working after claiming your State Pension, your earnings will not affect how much State Pension you get. But if you get an increase for a dependant, their earnings may affect how much increase you get for them.
If you put off claiming your State Pension for at least five weeks when you reach State Pension age, you can earn extra State Pension. The weekly amount of your State Pension will be higher, but you will not get any State Pension for the weeks you put off claiming.Get your State Pension Forecast online now
State Pension Calc