How Your State Pension Is Calculated
Your State Pension amount depends on your National Insurance record and how many "qualifying years" you have built up over your working life.
The Basic Calculation
For the new State Pension (if you reached State Pension age on or after 6 April 2016), the calculation is straightforward:
Your weekly pension = (Your qualifying years ÷ 35) × £230.25
Where £230.25 is the full rate for 2025/26
Example Calculations
| Qualifying Years | Calculation | Weekly Amount | Annual Amount |
|---|---|---|---|
| 35 (full) | 35 ÷ 35 × £230.25 | £230.25 | £11,973.00 |
| 30 | 30 ÷ 35 × £230.25 | £197.36 | £10,262.57 |
| 25 | 25 ÷ 35 × £230.25 | £164.46 | £8,551.43 |
| 20 | 20 ÷ 35 × £230.25 | £131.57 | £6,841.71 |
| 10 (minimum) | 10 ÷ 35 × £230.25 | £65.79 | £3,420.86 |
| 9 or less | - | £0.00 | £0.00 |
What Are Qualifying Years?
A qualifying year is a tax year (6 April to 5 April) in which you have:
- Paid enough National Insurance through employment or self-employment, OR
- Received National Insurance credits (for caring, unemployment, illness, etc.), OR
- Made voluntary National Insurance contributions to fill gaps
How Much Do You Need to Earn?
For employed people, you need to earn above the Lower Earnings Limit to get a qualifying year. For 2025/26, this is:
- £6,396 per year (£123 per week, £533 per month)
- You don't actually pay National Insurance at this level, but the year still counts
- If you earn less, you can still get credits if you're eligible
Self-Employed
If you're self-employed and pay Class 2 National Insurance (or have profits above the Small Profits Threshold of £6,725 for 2025/26), you get a qualifying year.
The 35-Year Rule
You need 35 qualifying years to get the full new State Pension. Why 35?
- It represents approximately 75-80% of a typical working life
- It's based on people typically working from around age 20 to State Pension age
- It allows for gaps due to unemployment, caring, education, etc.
The 10-Year Minimum
You need at least 10 qualifying years to get any new State Pension at all. With fewer than 10 years:
- You get nothing from the new State Pension system
- You may qualify for Pension Credit if you have low income
- You may be able to fill gaps with voluntary contributions
What Counts Toward Your Record?
National Insurance Contributions
- Class 1: Paid by employees and employers
- Class 2: Paid by self-employed (£3.50/week for 2025/26)
- Class 3: Voluntary contributions to fill gaps (£17.75/week for 2025/26)
National Insurance Credits
You can get credits automatically for:
- Claiming Child Benefit for a child under 12
- Receiving Carer's Allowance
- Claiming Jobseeker's Allowance or Universal Credit
- Receiving Employment and Support Allowance
- Statutory Sick Pay, Maternity, Paternity, or Adoption Pay
Read more about National Insurance credits.
Complications and Exceptions
Contracted-Out Deductions
If you were in a contracted-out workplace pension before April 2016, you may have a "contracted-out deduction" that reduces your State Pension even if you have 35 qualifying years.
This is because you and your employer paid lower National Insurance in exchange for the workplace pension providing additional benefits.
Protected Payments
If your State Pension under the old rules (before April 2016) would have been higher than the new State Pension, you may have a "protected payment" added to your new State Pension.
Old State Pension (Pre-April 2016)
If you reached State Pension age before 6 April 2016, you're on the old system:
- Basic State Pension: Up to £176.45/week (requires 30 qualifying years for full amount)
- Additional State Pension: Based on earnings and NI contributions history
- Different calculation rules apply
How to Check Your Calculation
Don't guess - check your actual entitlement:
1. Official State Pension Forecast
Visit gov.uk/check-state-pension to get your personal forecast. This shows:
- Your current qualifying years
- Your projected State Pension amount
- How many more years you need for the full amount
- Any gaps in your record
2. National Insurance Record
Check your full NI record at gov.uk/check-national-insurance-record to see:
- Year-by-year breakdown
- Which years are complete
- Which years have gaps
- Whether you can fill gaps
3. Use Our Calculator
Our qualifying years calculator gives you an estimate based on your number of qualifying years.
Can I Increase My State Pension?
Yes, if you don't have the full 35 years, you can:
1. Keep Working or Claiming Benefits
Continue building qualifying years until you reach State Pension age through:
- Employment or self-employment
- Receiving National Insurance credits
2. Make Voluntary Contributions
Fill gaps in your record by paying Class 3 voluntary contributions:
- Cost: £17.75 per week (£923 per year) for 2025/26
- Can fill gaps from the last 6 years (usually)
- Extended deadline until 5 April 2025 for years 2006-2017
- Only worthwhile if it actually increases your pension
Learn more about filling gaps in your record.
3. Defer Claiming
You can increase your weekly amount by approximately 5.8% for each year you defer claiming beyond your State Pension age.
Read about deferring your State Pension.
Important Points to Remember
- Your State Pension is based on your own National Insurance record, not your spouse's
- You need a minimum of 10 years to get anything
- Every year from 10 to 35 increases your pension proportionally
- Years beyond 35 don't increase your pension (but may affect credits for your spouse if they die)
- The calculation may be adjusted for contracted-out periods
- Always check your official forecast for accurate information
State Pension Is Taxable
Remember that State Pension is taxable income, though it's paid to you without tax deducted. If your total income (including State Pension) exceeds the Personal Allowance (£12,570 for 2025/26), you'll pay income tax.
Annual Increases
State Pension increases each April under the "triple lock" - by whichever is highest of:
- Inflation (CPI in September)
- Average earnings growth
- 2.5%
For 2025/26, it increased by 4.1% based on earnings growth.