A Guide to the UK State Pension

The state pension remains a cornerstone of retirement income for millions across the UK. It provides a reliable, lifelong payment, backed by the government and, for now, protected by the triple lock.

Importantly, the state pension can be strengthened through voluntary National Insurance (NI) contributions or NI credits, making it possible to fill gaps in your record – even later in life.

In this guide, we explore how the state pension works, how to check and boost your entitlement, and the role it can play in building a secure and sustainable retirement plan.

How it works

The UK state pension is a contribution-based benefit that depends on your National Insurance record.

For the new state pension (for those born on or after 6 April 1951 for men and 6 April 1953 for women), you need 35 qualifying years to get the full weekly amount – currently £230.25 for 2025/26. You need at least 10 qualifying years to receive any state pension.

You can check your current entitlement via the GOV.UK state pension forecast which will show your NI record today and projected entitlement if NI contributions continue.

The triple lock – your inflation shield

Each April, your state pension increases by the highest of:

• CPI inflation (the Consumer Prices Index measures the average change over time in the prices paid by consumers for a basket of goods and services, and is a key indicator of how the cost of living is rising)
• Average earnings growth
• A minimum of 2.5%

For example, in April 2025 it rose by 4.1% owing to earnings growth.

The state pension under pressure

By 2030, the cost of maintaining the triple lock has been predicted to rise to as much as £15.5 billion annually, according to analysis by the Institute for Fiscal Studies.

The Institute for Fiscal Studies (IFS) has warned that the triple lock’s long-term affordability is questionable. It has called for a shift to earnings-based indexation, combined with measures to protect the lowest-income pensioners, to prevent a growing strain on public finances.

Looking ahead, it is widely expected that the triple lock will survive in the short term– particularly given its popularity with older voters – but may be reformed within the next decade.

This could mean moving to a “double lock” (linking rises to the higher of earnings or inflation) or introducing caps to limit exceptionally high increases. For those nearing retirement, this would mean more modest annual rises in future, making it even more important to factor other income sources into their plans.

With the full new State Pension now at £230.25 per week (£11,973 annually), many retirees are approaching the £12,570 personal income tax allowance threshold. This allowance has been frozen until April 2028, meaning even modest additional income – such as from a private pension – could push your total income over the threshold, potentially resulting in a tax liability.

The State Pension itself uses up your personal allowance first and is not taxed at source. If you receive other income, HMRC may collect tax via an adjusted tax code on that income, or in some cases, ask you to complete a Self Assessment tax return.

Should you defer your pension?

Opting to defer your state pension can be financially rewarding. Under the new state pension you gain around 1% extra for every 9 weeks deferred, or about 5.8% per year.

At the current 2025 rate of £230.25/week, for example, deferring your pension by one year would add approximately £13.35/week – around £694 annually – for the rest of your life.

However – a bird in the hand is worth more than in the bush! Only you are entitled to your state pension, if you were to die, you’d never see this money at all.

Topping up your pension

If you lack qualifying years, you have two options. You can ‘buy’ voluntary NI contributions by contacting HMRC’s National Insurance helpline to arrange payment – either in full or, in some cases, by instalments. You usually have up to six years to backfill missing years.

Or you can use NI credits, if applicable. These are awarded in certain situations, such as if you’re caring for someone for at least 20 hours a week. For parents, claiming Child Benefit for a child under 12 automatically provides NI credits, even if you’re not working.

If you’ve missed out in the past, it’s worth checking if you can backdate your claim for credits to cover missing years. Full details are available on www.gov.uk/national-insurance-credits.

Closing the gender pension gap

Women, on average, still receive less in state pension than men, largely due to career breaks for childcare or caring responsibilities, and periods of part-time work that result in fewer qualifying NI years.

While the gap for new retirees has narrowed significantly in recent years, it remains a concern for many approaching retirement.

To help close this gap:

• Check your NI record regularly and fill gaps early with voluntary contributions where possible or NI credits if you’ve been a parent or carer, to make up for missing years.
• Ensure Child Benefit is claimed in your name, particularly if you’re not working, so you receive the NI credits linked to it.
• If you’ve been divorced or widowed, check if you’re eligible for additional state pension amounts based on your former spouse’s contributions under transitional rules.

Securing your retirement future

While the state pension remains a vital foundation for retirement income, its future is not guaranteed in its current form. Rising costs, political debate and potential reforms to the triple lock create uncertainty over how it will grow in the years ahead.

A well-planned combination of state income and flexible private pension can provide both security and choice – ensuring you can weather economic shifts.

For tailored guidance on how to create a retirement plan that works for you, speak to one of our retirement experts. Our team can help you understand your options, bridge any gaps and build a secure financial future with confidence.