Before seeking advice on pension provision it is worth getting the basics straight first.
The new State Pension is a regular payment from the government that you can claim if you have reached State Pension Age on or after 6 April 2016. Other arrangements applied prior to this date.
You will be able to get the new State Pension if you are eligible and are:-
- A man born on or after 6 April 1951
- A woman born on or after 6 April 1953
If you reached State Pension age before 6 April 2016, you will receive the Basic State Pension and Additional State benefits headers as shown below.
The new flat-rate State Pension is £203.85 per week (2023/24). Your National Insurance record is used to calculate your State Pension. You will usually need 10 qualifying years to receive any State Pension and 35 qualifying years for the full amount.
The amount you get can be higher or lower depending on your National Insurance record.
The Basic State Pension is for those whose State Pension age falls before 6 April 2016 and who have paid sufficient National Insurance contributions while at work or have been credited with sufficient contributions.
Additional State Pension – Referred to as the State Second Pension (S2P) or State Earnings Related Pension Scheme (SERPS) before 6 April 2002. From 6 April 2002, S2P was reformed to provide a more generous additional State Pension for low and moderate earners, carers and people with long-term illness or disability and is based upon earnings on which standard rate Class 1 National Insurance contributions are paid or treated as having been paid. Additional State Pension is not available in respect of self-employed income.
From April 2016 both the Basic State Pension and Additional State Pension were combined to offer a simple single tier ‘flat-rate’ pension.