The new State Pension (introduced April 2016) is a higher, single-tier payment for those reaching state pension age on/after 6 April 2016, generally requiring 35 years of National Insurance (NI) for the full amount (£230.25/week in 2025/26). The basic State Pension is for those who reached state pension age before this date, offering a lower core amount (£176.45/week in 2025/26) often supplemented by an additional state pension (SERPS).
The basic State Pension is currently £137.60 per week. This amount goes up each year. If you can get it, the full new State Pension amount is £179.60 a week. The money you may be able to get could be lower.
You may have been contracted out. While you were contracted out, you or your employer paid more into your workplace or private pension and less into your State Pension. If you were contracted out, you will usually need more than 35 qualifying years to get the full rate of new State Pension.
The pre-April 2016 system is 'old' because the 'new' single-tier State Pension was introduced for people reaching State Pension age from 6 April 2016 onwards.
The full basic State Pension is £176.45 per week. You may have to pay tax on your State Pension. If you're a man born on or after 6 April 1951 or a woman born on or after 6 April 1953, you'll get the new State Pension instead.
Pension. For lesser qualifying service, the amount of pension will be 50% of average emoluments of last 10 months or 50% of last basic Pay whichever is more beneficial subject to minimum pension Rs. 9000/- p.m.
There are 2 main types:
You need 35 qualifying years or more of NI contributions to get a full new State Pension. If you've got between 10 and 35 qualifying years, you'll get part of the full rate. This is 1/35th for each qualifying year you have.
From 20 September 2025, the full pension is available, under the assets test, for homeowner singles whose assessable assets are under $321,500 – for homeowner couples the number is $481,500. The numbers for non-homeowners are $579,500 and $739,500 respectively.
Who Will Receive the $1,100 Centrelink Bonus. The bonus will be automatically issued to eligible Australians receiving approved Centrelink payments. Those expected to qualify include: Age Pension recipients.
Additional State Pension, also known as the State Earnings-Related Pension Scheme (SERPS) and State Second Pension, is an extra amount of money you could get on top of your basic State Pension if you're a man born before 6 April 1951 or a woman born before 6 April 1953.
Starting in January 2024, your Social Security benefits will no longer be reduced or eliminated if you receive a retirement or disability pension from work not covered by Social Security.
The basic and new State Pension will be uprated by 4.8% from April 2026.
The Triple Lock ensures that the State Pension rises by the highest of three measures: 2.5%, average wage growth, or inflation. This meant it climbed by 4.1% in April, in line with wages. However, this uplift only applied to the new State Pension and basic State Pension.
The Old Pension Scheme (OPS) provides a secure pension with regular increases through Dearness Allowance (DA). The National Pension Scheme (NPS) allows greater investment flexibility and the chance for higher returns, but it carries more risk due to market fluctuations.
In November 2025, the full retirement age (FRA) — the age at which individuals qualify to receive 100% of their Social Security benefits — increased to 66 years and 10 months for those born in 1959. FRA gradually rises month by month, so in November 2025, those born in January 1959 reached their FRA.
People of pension age can have up to £10,000 savings in the bank before it affects their pension credit. So if you have savings over £10,000, it will start to count towards your income calculation. Every £500 over £10,000 will be calculated as £1 additional income per week.
The "pension 5-year rule" refers to different IRS rules for retirement accounts (like Roth IRAs needing 5 years for tax-free earnings), beneficiary rules (requiring heirs to empty inherited accounts within 5 years), and specific employment pensions (like Federal or Congressional plans requiring 5 years of service for vesting or benefits). It can also relate to UK pension rules for overseas transfers (QROPS) or breaks in service for public sector workers, preventing tax avoidance or loss of benefits.
For people aged 60, Fidelity's retirement savings guidelines recommend an amount in savings worth six times your salary in order that you have enough to maintain your standard of living in retirement. So, someone earning £60,000 would need £360,000 in savings - which can mean money both inside and outside of pensions.
Prioritizing a pension over Social Security can be attractive for several reasons. First, pensions often provide a more predictable and potentially higher income stream. The predictability of a fixed income from a pension can also be advantageous who prefer financial stability and want to plan their retirement budget.
Deeming Rates changes 2026
On 20 September 2025 the deeming rates were increased for the first time in five years. The higher deeming rate meant that those on Age Pension entitlements were deemed to earn higher income and so some would have seen their payments reduced.
You may inherit part of or all of your partner's extra State Pension or lump sum if: they died while they were deferring their State Pension (before claiming) or they had started claiming it after deferring. they reached State Pension age before 6 April 2016. you were married or in the civil partnership when they died.
There's often no single best type of pension. Saving into other types of pension scheme is often the right choice. That's because the State Pension on its own may not be enough to fund most people's retirement, so topping it up with another type of pension could be a good idea.
Pitched at three levels: Minimum, Moderate and Comfortable, they have been designed as a practical and meaningful way for savers to understand retirement saving.
Pension benefits are typically a fixed monthly payment in retirement that is guaranteed for life. Some pension benefits grow with inflation. Other pension benefits can be passed on to a spouse or dependent. But pensions aren't the only financial route to guaranteed lifetime income after you retire.