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The State Pension age rose for men and women on October 6 meaning from that time you need to be 66 to begin claiming State Pension. This age will again rise to 67 by 2028. Each year the State Pension amount rises as a result of the triple-lock guarantee introduced in 2011. But exactly how much is the State Pension and how much will you get?
What is State Pension?
State Pension is a regular monetary payment paid to eligible persons once they have reached State Pension age.
This Government payment is intended to ensure everyone has a foundation for their retirement income to support them in their old age.
State Pensions are funded from National Insurance contributions and therefore one’s eligibility for State Pension is contingent on their own National Insurance record.
When is State Pension age?
From October 6, 2020, the new State Pension age is 66.
The State Pension age is scheduled to rise to 67 by 2028 and again to 68 by 2039.
You can work out when you will qualify for the State Pension using the State Pension calculator tool here.
Are you eligible for State Pension?
To qualify for State Pension, you must make National Insurance contributions.
You need a minimum of 10 years’ worth of contributions to receive a State Pension.
However, to receive the full State Pension you must make 35 years’ worth of contributions.
You may not have enough qualifying gaps in your record due to breaks in working due to unemployment, being ill, not working, taking time off for childcare or living abroad.
But those individuals are able to make voluntary contributions to help meet this minimum requirement.
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How much is the State Pension?
The amount of State Pension someone receives is contingent on their personal circumstances and when they qualified for the State Pension.
If you are a man born before April 6, 1951, and a woman born before April 6, 1953, you are entitled to the full basic State Pension.
The full basic State Pension scheme for 2020/2021 is £134.25 per week, which equates to £6,981 a year.
For men born on or after April 6, 1951, or women born on or after April 6, 1953, you qualify for the new State Pension.
The new State Pension is £175.20 per week, which equates to £9,110.40 a year.
You must have at least 35 qualifying years of National Insurance contributions to get the full amount.
The only reasons the amount can be higher are if:
- You have over a certain amount of Additional State Pension
- You defer (delay) taking your State Pension.
How is State Pension paid?
Full Basic State Pension
This State Pension is paid on different days depending on your National Insurance number.
It is usually paid every four weeks into an account of your choice.
You are paid in arrears which means you are paid for the last four weeks, rather than the coming four weeks.
New State Pension
After you have made a claim for State Pension, you will receive a letter about your payments.
The new State Pension is usually paid every four weeks into an account of your choice.
You are also paid in arrears for the new State Pension.
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