The state pension comes in two forms, but how much Britons receive is based on a number of variables. This includes when they were born and how many years they have spent in employment. There are two types of state pension currently, the basic state pension and the new state pension. What is the difference between the two and which are you eligible for?
The basic state pension
The basic state pension is an older version of the state pension.
You can claim it if you are a man born before 6 April 1951 or a a woman born before 6 April 1953.
The most you can get on the basic state pension is £125.95 per week.
Gov.uk states that the basic state pension increases by every year, and the amount it increases is judged based on earnings and prices.
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The new state pension
The new state pension is an updated version of the basic state pension.
You can claim it if you are a man born on or after 6 April 1951 or a woman born on or after 6 April 1953.
The full new State Pension is £164.35 per week.
However, the amount of state pension you receive, whether it is the new or basic state pension, depends on how much national insurance paid.
Gov.uk states: “You’ll usually need at least 10 qualifying years on your National Insurance record to get any State Pension.
“They do not have to be 10 qualifying years in a row.”
National insurance is paid out of your salary, like a tax.
The state pension age is rising for both men and women from 65 to 66 – for those who are born from December 6, 1953.
What’s more, once the state pension age reaches 66, it’s set to change again, as there will continue to be a gradual increase to 67.
This is expected to begin taking place in 2026.
When should you claim your state pension?