Understanding the State pension

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The State pension changed in 2016 (for people who retire after April 6th 2016).

Instead of the old system where people had a basic state pension, and made contributions towards an additional state pension (depending on their age and income) there is a single flat full level of £203.85 (as of 2023/24). You can no longer build up an additional state pension and you may even get less. We explain how and why below:

how does the the flat rate State pension work?

Anyone who has made any NI contributions will have a ‘starting amount’

It will be based on two calculations

the first is what you would be due if the new rules had been in place throughout your career
the second is what you have already built up in the old system.

If the amount you have built up in the old system is higher than the flat rate, then that will be protected, and paid in addition to the flat rate state pension

However, this is frozen, so if you are working you will continue to pay into the system until your retirement age without receiving any extra benefit from it

If you haven’t paid enough National Insurance, then you won’t get the full level state pension.

How do I find out more and check I’m getting what I am entitled to?

If you haven’t retired yet and you’re wondering how much State Pension you will get when you do get to that age, you can get a pension forecast at the Gov.uk site here.

If you’d like to know of all the other great benefits you can get once you’re over 60, including free travel, cheaper dental and medical treatment and lots more, take a look at our article about it here.