How much is the new state pension in 2024?

Planning for your retirement is a big thing, and understanding the state pension is a fundamental part of that process.

With recent changes to the state pension system, it can be confusing to make sense of the information available.

What is the new state pension?

Introduced in April 2016, the new state pension replaced the old basic state pension.

It aims to provide a simpler and fairer system for those reaching state pension age.

The amount you receive depends on your National Insurance (NI) contributions.

The full new state pension for 2024-2025 is £221.20 per week.

This is a significant increase from the previous year due to the government’s decision to uprate the pension in line with average earnings growth.

However, it’s important to note that not everyone will receive the full amount.

The amount you get depends on your National Insurance record.

You need a minimum of 10 qualifying years to receive any state pension at all.

To qualify for the full new state pension, you generally need to have made National Insurance contributions for at least 35 qualifying years.

This means you must have paid enough National Insurance during your working life to build up a full state pension.

You will have to check your National Insurance record to understand your position.

Yes, you can check your state pension online or by contacting the government’s Pension Service.

This service will provide you with an estimate of your state pension based on your National Insurance record.

It’s advisable to check your state pension regularly to ensure the information is accurate.

If you’re below state pension age, you can increase your state pension by continuing to work and paying National Insurance contributions.

Also, you might be eligible for voluntary National Insurance contributions if you have gaps in your National Insurance record.

If you don’t have enough qualifying years for the full new state pension, you might be eligible for the new state pension but at a reduced rate.

Alternatively, you might qualify for the old basic state pension, depending on your date of birth and National Insurance contributions.

Your state pension age depends on your date of birth. Currently, the state pension age is 66 for both men and women.

However, this is set to increase to 67 between 2026 and 2028.

You must know your state pension age in order to plan your retirement effectively.

You can choose to defer taking your state pension beyond your state pension age.

For each week you defer, you’ll receive an increase in your state pension when you eventually claim it.

However, it’s important for you to weigh up the pros and cons of deferring your state pension carefully.

In addition to the state pension, you might be entitled to other benefits, such as Pension Credit.

Pension Credit is a means-tested benefit available to people over state pension age who have a low income.

It can help with living costs and other expenses.

If you’re unsure about your pension options, seeking financial advice is recommended.

A qualified financial advisor can assess your circumstances and provide personalised guidance on making the most of your retirement savings.