State pension is designed by the Government to support Britons after they retire from years of working, giving them regular payments.
Figuring out how much money the Government will give you after you reach retirement age can be difficult and payments are not given out automatically.
Claiming your pension or knowing how much you are entitled to can cause confusion, especially after the new state pension scheme started.
Read below to find out how much you are entitled to when you retire.
How much do you get from the government when you retire?
When you reach State Pension age the Government will provide you with regular payments through the state pension.
A new State Pension scheme has been introduced, but if it’s relevant to you depends on when you were born.
The new State Pension is for people that will reach State Pension age on or after April 6, 2016.
The full new Statement Pension is £164.35 per week.
However, the amount you get depends on you National Insurance contributions.
Britons on a low income can get Pension Credits which tops up your weekly income to £163 for single people or £248.80 for couples.
Extra payments can additionally be given if you are severely disabled or a carer.
Certain housing costs can also be rewarded with more money.
If you reached State Pension age before April 6, 2016 the maximum payment you can get is £125.95 per week unless you are on low income, a carer, severely disabled or have certain housing costs.
This is done according to the old “basic State Pension”.
How does the new State Pension scheme work?
To be entitled to the full amount of the new State Pension you must usually have 35 qualification years of National Insurance contributions or credits.
If you have worked between ten and 35 qualification years you will only get a proportion of the new pension.
This will be less than £125.95 per week.
The new State Pension increases every year and the amount you’ll get depends on your earnings, growth in prices or a 2.5 percent increase, whichever is highest.
For more information on the new State Pension visit the governments State Pension explainer HERE.
What is the retirement age?
The State Pension age is 65 for men, while it is currently gradually increasing for women from 60 to 65.
However, this is changing from 2019.
The new retirement age will increase for both genders to reach 66 by 2020 and between 2026 and 2028 the government is planning to raise the age even further, from 66 to 67.
You can continue working after you reach State Pension age as the “Default retirement age”, a forced retirement age of 65, has been scratched.