State Pension payments are regular income paid by the Government to those who have lived and worked in the UK throughout their lives. It gives the older generations a solid foundation for their retirement to support them through later life.
These payments are funded from National Insurance contributions and your eligibility is based upon an individual’s own NI contributions during their working years.
The full rate of the new State Pension will be £175.20 per week but what you get can be more or less, dependent on your NI record.
Under the new state pension system, a minimum of 10 years of contributions will be needed for any income, with 35 needed for the full amount.
You must actively claim your State Pension – it is not automatically supplied to you.
The most basic State Pension you can currently get is £134.25 per week depending on whether you have the 30 qualifying years of NI contributions to get the full amount.
Men born on or after April 6, 1951, and women on or after April 6, 1953 are entitled to claim the new State Pension.
To receive any State Pension at all, you must have at least ten years of contributions.
This doesn’t need to be ten years in a row, and moving out of the UK does not affect your contributions.
This April, the State Pension increased by 3.9 percent from £168.60 to £175.20.
The basic State Pension rate also increased to £134.25 a week, which is an extra £260 a year.
Each year the State Pension amount increases under the Triple Lock system.
The Triple Lock system guarantees that the basic state pension increases every year by whichever is highest out of: the rate of of inflation, the rise in average earnings, or 2.5 percent.
Before 2011, the state pension rose in line with the retail prices index measure of inflation, which was consistently lower than annual rises in earnings or 2.5 percent.
The Institute for Fiscal Studies said in its recent assessment: “Between April 2010 and April 2016 the value of the state pension has been increased by 22.2 percent, compared to growth in earnings of 7.6 percent and growth in prices of 12.3 percentover the same period.”
This means pensioners have seen their incomes rise at almost double the pace of the average worker.