How has my state pension been calculated?

We have seen significant changes in recent years regarding the state pension, leaving many people wondering, "how has my state pension been calculated?"

If you reached the state pension age before 6 April 2016, the government calculates your state pension under the old-style system. 

This includes the basic state pension and the additional state pension. The new state pension applies to anyone who reaches the state pension age after 6 April 2016. 

The state pension is a vital part of retirement planning. Understanding how you accrue your state pension enables you to plan effectively for retirement.

Several factors, mainly your NI contributions, help you understand how the government calculates your state pension, since they directly influence the amount you’ll receive.

You may have earned additional credits over time which will influence your state pension entitlement.

 

How much is the state pension in 2025/2026?

The full new state pension is £230.25 per week, totalling £11,973 annually. Whether you receive the full amount will depend on how many years' worth of NI contributions you have paid.

You need at least 35 years of NI contributions to qualify for the full new state pension. This is a key factor when trying to understand how has my state pension been calculated under the current system.

You need at least 10 years of NI contributions to receive any state pension and the government will pay your state pension based on your qualifying years.

If you reached the state pension age before 6 April 2016, you're under the basic state pension system.

The basic state pension is £176.45 per week, or £9,175.40 annually.

You’ll probably get more than the listed amount if you accumulated an additional state pension.

What age can I claim my state pension?

The current state pension age is 66. However, this will rise to 67 between 2026 and 2028. For people born after April 1977, the government has not yet determined the state pension age.

The government has scheduled the increase to 68 between 2044 and 2046, but they have not yet confirmed this and could bring it forward.

The government always outlines this information at least 10 years in advance. 

 

What happens if I was ‘contracted out’?

If you were under the old state pension system (before 6 April 2016) and had a private pension, you would have had the option to 'contract out' of the additional state pension.

This meant you paid less NI and boosted your private workplace pension instead of building up your state pension entitlement.

'Contracting out' ended when the new state pension rules came into play after 6 April 2016. However, your decision to contract out still affects your pension amount and is an important consideration when asking, how has my state pension been calculated?

How the triple lock affects your payments

The government uses the triple lock to increase the state pension at a minimum of 2.5%. The increase could be more than 2.5% if inflation or average earnings growth are higher.

This year shows an example: the state pension will rise by 4.1% to keep in line with average earnings growth. The increase follows the highest of the three measures, in this case, average earnings growth. 

What measures can I take to increase my state pension?

To increase your state pension, start by checking for gaps in your NI record. You can check this on the GOV UK website by looking at your state pension forecast.

If you’re unsure how we calculate your state pension, review your NI contributions and credits. Before you make any voluntary contributions, check whether you qualify for NI credits. An example of this is parents receiving child benefits. 

If you care for a child under 12, you automatically receive Class 3 NI contributions. You can also receive NI credits for various benefits such as Employment and Support Allowance and Universal Credit. Check with your local Jobcentre if you are unsure. 

You can also bolster your state pension by deferring it. If you defer your state pension, the government increases your entitlement by 1% every 9 weeks.

How do I claim the state pension?

Typically, you will get a letter four months before your state pension age. You can claim your state pension by telephone by calling the state pension claim line (0800 731 7898).

You can also claim online; you will need to have registered with a Government Gateway ID through the Department Works Pension website. The final way to claim is by completing a state pension claim form. You fill this out and send it to the Pension Service. You can find the form on the GOV UK website.