The State Pension

Your questions answered

Q: What is the State Pension?
A: The 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.

Q: What is the State Pension age?
A: The State Pension age is currently 65 for men and 60 for women born on or before 5 April 1950. The State Pension age for women will increase gradually from 2010, so that by 2020 it will be 65.

The increase in the State Pension age will not affect women born on or before 5 April 1950. Women born between 6 April 1950 and 5 April 1955 (inclusive) will have a State Pension age between 60 and 65. Women born on or after 6 April 1955 and before 6 April 1959 will have a State Pension age of 65.

The State Pension age for both men and women is to increase from 65 to 68 between 2024 and 2046, with each change phased in over two consecutive years in each decade. The first increase, from 65 to 66, will be phased in between April 2024 and April 2026; the second, from 66 to 67, will be phased in between April 2034 and April 2036; and the third, from 67 to 68, between April 2044 and April 2046.

Q: Who is eligible to receive the State Pension?
A: You may be entitled to a State Pension if you have:
Reached the State Pension age - and;
you, your husband wife or civil partner have paid or been credited with NI contributions

Q: How much State Pension will I receive?
A: It is not possible to provide a definitive amount as every individual’s circumstance will be different. The amounts of all benefits are reviewed each year with most benefits uprated in April. However, your State Pension is not uprated if you live in certain countries abroad.

The rules for benefits mean that your individual circumstances may affect the amount you can receive. However as a general guide the amounts are as follows:

Basic State Pension
(per week from 7 April 2008)

Q: What is the State Pension made up of?
A: The Sate Pension may be made up of the following:

Basic State Pension
Entitlement to the basic State Pension is dependent on the number of qualifying years you have earned over your working life.

Qualifying years are based on the NI contributions you have paid, been treated as having paid or been credited with during your working life.

Additional State Pension
Depending on your individual circumstances, you may also be entitled to an additional State Pension. This is also called the State Second Pension and was formerly known as the State Earnings Related Pension Scheme or (SERPS). As its name suggests, additional State Pension is paid in addition to the basic State Pension.

Graduated Retirement Benefit
Based on any graduated NI contributions you paid between April 1961 and April 1975.

Long-term Incapacity Benefit Age Addition to State Pension
Your State Pension will be automatically and permanently be increased if you were getting long-term Incapacity Benefit Age Addition at anytime within the period of 8 weeks ending on the day before you reach State Pension age.

Your long-term Incapacity Benefit Age Addition will be reduced if you are getting any additional State Pension. This may mean no long-term Incapacity Benefit Age Addition is payable.

The rate you get will be the same as that which is paid with your Incapacity Benefit.

Age Addition
This is 25p a week and is paid to anyone aged 80 or over on top of their State Pension.

Increased State Pension for dependants
You may be able to receive an increased State Pension for your husband, wife or civil partner.

Before 6 April 2003 you could get an increase in your State Pension for any children you had responsibility for, or if someone else looked after children for you. If you were receiving this increase before 6 April 2003 it will continue to be paid. From 6 April 2003 provision for children is made through Child Tax Credits.

Pensions reform
The Pensions Act 2007 and the Pensions Act (Northern Ireland) 2008 have made changes to the State Pensions system.

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 already a widow, widower or surviving civil partner you can get up to 100 per cent of your late husband’s, wife’s or civil partner’s additional State Pension.

If your husband or wife or civil partner reached State Pension age before 6 October 2002, you may receive up to 100 per cent of their SERPS pension or Additional State Pension when they die.

If your husband, wife or civil partner is due to reach State Pension age after 5 October 2002 but before 6 October 2010, if they die before you, you may receive a maximum of between 90 per cent and 60 per cent of their SERPS pension. The exact amount will depend on when, in this period, they reach State Pension age.

If you husband or wife is due to reach State Pension age on or after 6 October 2010, you may receive up to 50 per cent of their SERPS pension if they die before you.

The maximum amount of additional State Pension built up after 6 April 2002 under the
State Second Pension that a surviving husband, wife or civil partner can inherit will be 50 per cent.

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 partners 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 an 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.

Did you know?

Additional State Pension
From 1978 to 2002 additional State Pension was paid from the State Earnings Related Pension Scheme (SERPS) and was only available to employees.

From 6 April 2002, SERPS was reformed to provide a more generous additional State Pension for low and moderate earners, and to extend access to include certain carers and people with long-term illness or disability. This is called the State Second Pension.

Graduated Retirement Benefit
Based on your graduated NI contributions paid between April 1961 and April 1975. For every £7.50 (man) or £9 (woman) of graduated contributions paid you get 10.98 pence (in 2008/09).

Increased benefits for dependants

Dependent children
If you were in receipt of the increase for dependent children before 5 April 2003, you may continue to receive:

• £9 for the oldest child who qualifies for Child Benefit
• £11.35 for each other child who qualifies

No claim for this benefit can be made after 6 April 2003.

Dependent adults
You may get £54.35 (in 2008/09) for a husband, wife or a person looking after children, paid with your State Pension (based on your NI contributions).

What happens if ?
Q: I go to live abroad or visit?
A: Contact The Pension Service as soon as you can to let them know you are going abroad.
You can continue to get your State Pension anywhere in the world. Most benefits are affected if you are going abroad.

Q: I go abroad for 3 months or less
A: If you have your State Pension paid into an account, this can usually continue. If you are paid by cheque you can ask to have the money paid into an account or your State Pension can be paid as a lump sum when you return to the UK.

Q: I go abroad for between 6 and 12 months
A: If you have your State Pension paid into an account, this should be able to continue. You can request to have the money transferred abroad.

If you do not want this to continue, a cheque could be sent (in sterling) at the end of every four or thirteen weeks. This can usually be sent straight to you, your overseas bank or someone else appointed by you.

If you prefer, your State Pension could be paid as a lump sum when you returned to the UK.

Q: I go abroad for 12 months or permanently
A: Your State Pension can be paid straight into your overseas account in some countries.

If this is not possible or if you prefer, your State Pension can be paid into a UK account or a cheque (in sterling) sent at the end of every four or thirteen weeks. This can be sent straight to you, your overseas bank or someone else outside the UK chosen by you.

If you are away for less than two years your State Pension can be paid as a lump sum when you return to the UK.

If your State Pension is £5 a week or less and is paid once a year, it will continue to be paid in while you are abroad.

Special arrangements may have to be made if you need payments made to Pakistan, India or Bangladesh.

You can continue to receive your State Pension anywhere in the world, but in some countries you may not be able to get an increase in your State Pension for your dependants or the yearly increase in your payments.

Q: I start voluntary work?
A: State Pension is not usually affected by voluntary work.

Q: I go into residential care or a nursing home?
A: Your State Pension may be affected, so you should contact The Pension Service as
soon as you go into care or a home and they will advise you.

Working life

Your working life is the period over which you have to have met the contribution conditions for the basic State Pension. It is normally:

• 49 years for men
• 44 years for women born on or before 5 October 1950
• 45 years for women born on 6 October 1950 or on any day through to and including 5 October 1951
• 46 years for women born on 6 October 1951 or on any day through to and including 5 October 1952
• 47 years for women born on 6 October 1952 or on any day through to and including 5 October 1953
• 48 years for women born on 6 October 1953 or on any day through to and including 5 October 1954
• 49 years for women born on 6 October 1954 or later

Your working life is counted from the start of the tax year in which you reach the age of 16 to the end of the tax year before the one in which you reach State Pension age.