Quick answer
For the 2026/27 tax year, the full new State Pension is:
£241.30 a week
which is £12,547.60 a year.
But that does not automatically mean you will receive £241.30 a week. Your actual State Pension depends on your individual National Insurance record and, for many people, what happened before the new State Pension system began in April 2016.
So if you're planning retirement, don't simply type £12,547.60 into your spreadsheet. Get your own State Pension forecast. That's the number that matters.
What is the new State Pension?
The new State Pension applies to people reaching State Pension age under the post-April-2016 system.
Broadly, that means men born on or after 6 April 1951 and women born on or after 6 April 1953.
For people who reached State Pension age before that, the older basic State Pension system applies.
Most people currently planning retirement will therefore be looking at the new State Pension.
Steve's observation
This is probably one of the easiest retirement-planning mistakes to make. Someone hears: "The State Pension is about £12,500 a year." So they put £12,500 into the plan. Job done.
Except we haven't checked whether their State Pension is £12,500. It might be. It might not. Retirement planning works much better when we stop using "roughly what everybody gets" and start using "what I'm actually forecast to receive."
How do I find out what I'll get?
The quickest place to start is the government's Check your State Pension forecast service.
- how much State Pension you could get;
- when you can get it;
- whether you may be able to increase it;
- and, where relevant, how you may be able to increase it.
Your retirement plan should use your personal forecast rather than automatically using the full State Pension figure.
How many National Insurance years do I need?
This is where the rules are often oversimplified. You frequently hear: "You need 35 years for the full State Pension."
For somebody whose National Insurance record began after 6 April 2016, 35 qualifying years will normally be required for the full new State Pension. You will normally need at least 10 qualifying years to receive any new State Pension.
But there is an important complication. Most people approaching retirement today had National Insurance history before April 2016. Their entitlement can be affected by transitional rules. So simply counting 35 years on your National Insurance record doesn't necessarily tell you exactly what you'll receive.
What is a qualifying year?
A qualifying year doesn't necessarily mean a year in which you worked full-time.
- working and paying National Insurance;
- National Insurance credits;
- self-employment;
- or voluntary National Insurance contributions.
Credits can arise in various circumstances, including periods when someone is caring, looking after children or receiving certain benefits. That's why two people with similar employment histories can still have different National Insurance records.
What if I have gaps in my National Insurance record?
A gap doesn't automatically mean disaster. First establish: does the gap actually reduce my expected State Pension?
Depending on your circumstances, it may sometimes be possible to improve your record through future qualifying years, National Insurance credits or voluntary contributions.
- future qualifying years;
- National Insurance credits;
- or voluntary contributions.
But don't jump straight from "I have a gap" to "I must pay to fill it." You need to establish whether filling that particular gap would actually improve your State Pension.
Pause for thought
- Imagine somebody has several gaps in their National Insurance history. Their first instinct might be: "Right, how much does it cost to fill them all?" Wrong first question.
- The first question is: "Would paying for these years actually increase what I receive?" Never spend money solving a problem until you've established that the problem exists.
What does contracted out mean?
Before the new State Pension was introduced, some workplace pension schemes were contracted out of part of the State Pension system. This often applied to certain defined benefit or salary-related workplace pensions.
While contracted out, you or your employer generally paid lower National Insurance towards the additional State Pension, with pension benefits being provided through the workplace arrangement instead.
As a result, someone may look at their National Insurance record and say: "I've got more than 35 qualifying years. Why am I not getting the full amount?" Contracted-out history can be part of the answer.
The government specifically warns that people who were contracted out before 2016 may need more than 35 qualifying years to reach the full rate of the new State Pension.
Can somebody get more than the full new State Pension?
Yes. Some people built up entitlement under the old Additional State Pension system before April 2016. Under the transitional arrangements, they may have a protected payment on top of the full new State Pension.
So £241.30 isn't necessarily an absolute maximum for every individual. Again: use your own forecast.
How does State Pension fit into retirement planning?
State Pension can be one of the most valuable building blocks in a retirement plan because it provides regular income for life.
Imagine your retirement expenditure is £35,000 a year. Your forecast State Pension eventually provides approximately £12,500 a year. That means your private pensions and other assets don't necessarily need to provide the entire £35,000. They may need to help fund the remaining gap.
We've explained how to establish your spending requirement in ODW-RP-005 — How Much Income Will I Need in Retirement? And if you're trying to determine whether your overall resources may be enough, start with ODW-RP-001 — How Much Money Do I Need to Retire?
State Pension might not start when you retire
This is critical. You could retire at 60. Your State Pension might not start until several years later.
So although it may eventually provide a meaningful part of your income, your private pensions, savings and investments may initially have a much bigger job.
This is why you need both figures: how much State Pension will I get, and when will I get it?
Is State Pension age the same as retirement age?
No. State Pension age determines when you can start receiving your State Pension. It doesn't tell you when you have to stop working.
- stop working before State Pension age;
- continue working after State Pension age;
- or gradually reduce work.
Your personal retirement date and your State Pension date can therefore be completely different.
Can I claim State Pension early?
No. You cannot simply take a reduced State Pension several years early in the way some private pensions may be accessed earlier.
If you retire before State Pension age, you need another source of income to fund that period. The important thing is to plan the gap rather than discovering it after you've left work.
- private pensions;
- savings;
- investments;
- part-time earnings;
- or other assets.
Can I defer my State Pension?
Yes. You don't have to claim your State Pension immediately when you become entitled to it. If you delay claiming for at least nine weeks, the new State Pension can increase.
Under the current rules, deferring for a full year increases the weekly pension by just under 5.8%.
But that doesn't mean everybody should defer. You are giving up income now in exchange for higher income later. How long you live, tax, other income, benefits and personal circumstances can all affect whether deferral is attractive. It needs considering in context.
Does the State Pension increase every year?
The new State Pension is currently increased each year under the triple lock. It rises by the highest of average earnings growth, CPI inflation or 2.5%.
Protected payments above the full new State Pension are treated differently and increase in line with CPI.
Rules can change in future, so long-term retirement projections shouldn't assume political policy can never change.
Is State Pension taxable?
Yes. State Pension is taxable income. However, tax isn't normally deducted directly from the State Pension payment itself.
Your wider income and tax position determine whether tax is actually due. This means somebody receiving State Pension plus private pension income may need to consider the combined taxable income rather than looking at each source separately.
What about couples?
State Pension is fundamentally an individual entitlement under the new State Pension system. So don't automatically think: "We're a married couple, therefore we get one household State Pension." Each person should get their own forecast.
- different National Insurance histories;
- different State Pension amounts;
- different State Pension ages;
- and different retirement dates.
For retirement planning, put both forecasts into the household picture.
Coaching point
I would want every person approaching retirement to know these four things:
- My forecast weekly or annual State Pension
- My State Pension age
- Whether my forecast is already at the maximum I'm likely to receive
- Whether any gaps in my National Insurance record could genuinely improve my entitlement if addressed
Once you've got those four answers, the State Pension stops being "whatever the government gives me one day" and becomes a proper part of the retirement plan.
What if my forecast is lower than I expected?
Don't immediately panic. Find out why. Then establish whether there is anything you can realistically do about it.
- insufficient qualifying years;
- gaps in your National Insurance record;
- contracted-out history;
- your current record not yet including future years;
- or transitional calculations from the pre-2016 system.
The forecast service may indicate whether your State Pension can be increased. For more complex cases, the Future Pension Centre can provide information about your State Pension position before you reach State Pension age.
Should I pay voluntary National Insurance contributions?
Sometimes this can improve State Pension entitlement. Sometimes it may not. That's why paying voluntary National Insurance should not become an automatic response to seeing gaps.
- your State Pension forecast;
- your National Insurance record;
- how many additional qualifying years you may naturally build before State Pension age;
- and whether paying for a specific missing year would actually increase your pension.
The potential benefit needs to be established before spending the money.
What if I've spent time caring for children or someone else?
You may have received, or potentially be entitled to, National Insurance credits during periods when you weren't paying normal National Insurance contributions.
If you think your record is incomplete, don't simply assume: "I wasn't working, so that year is lost." Check the National Insurance record.
Frequently asked questions
What Should I Do Next?
Before doing anything more complicated: get your State Pension forecast.
Then check: how much am I currently forecast to receive? At what age? Can the amount still increase? Does my National Insurance record contain gaps?
Only after that should you start deciding whether action is required.
The Open Door Wealth View
Your State Pension shouldn't be treated as a vague bonus that appears somewhere in retirement. For many households, it's one of the foundations of the entire retirement plan.
But use your State Pension, not the headline State Pension. There's a significant difference between "The full State Pension is £241.30 a week" and "My forecast says I will receive £X from age Y." The second statement is something we can actually plan around.
So if you take only one thing from this guide: get the forecast before you build the retirement plan.