For many pensioners, the State Pension forms the foundation of their retirement income. Whether you’re already receiving it or still a few years away from claiming, understanding the key details for 2025/26 is essential.
In the 2025/26 tax year, you can start claiming the State Pension from the age of 66. However, from 6 May 2026, the qualifying age will gradually increase to 67, with further rises expected in the future.
It’s important to note that you won’t automatically receive the State Pension once you reach the qualifying age—you’ll need to actively claim it. A few months before you become eligible, you should receive a letter with instructions on how to apply online.
In some situations, delaying your State Pension may be beneficial. For instance, if you’re still working and the additional income would push you into a higher tax bracket, deferring your claim could result in receiving a higher amount when you eventually start taking it.
The full new State Pension will provide a weekly income of £230.25 in 2025/26.
How much you receive depends on your National Insurance contributions (NICs) throughout your working life. To qualify for the full amount, you typically need 35 years of NICs on your record. These qualifying years can include periods when you were employed and paying NICs, or when you received NI credits due to unemployment, illness, parenting, or caregiving responsibilities.
If you have between 10 and 35 qualifying years, you’ll usually receive a proportion of the full amount. That’s why checking your NI record before reaching State Pension age is important—it helps you estimate your future payments.
One key benefit of the State Pension is that it increases each tax year, helping to maintain your spending power as the cost of living rises. Under the triple lock system, it grows by the highest of three measures: inflation, wage growth, or 2.5%. For the 2025/26 tax year, this system ensures a 4.1% increase, bringing the full weekly payment to £230.25, or around £11,970 a year.
Understanding when you could claim the State Pension and how much you might receive is often important for creating a financial plan that suits your goals. You can use the government’s State Pension forecast tool, but keep in mind both the State Pension Age and how the income is calculated could change in the future.
Filling in National Insurance gaps could boost your State Pension income
Since your National Insurance (NI) record directly affects how much you receive from the State Pension, filling in any gaps could help increase your retirement income if you don’t yet have the 35 qualifying years needed for the full amount.
If you’ve taken a career break or had periods of lower earnings, it’s worth checking your NI record. Purchasing additional NI years can help you boost your State Pension entitlement. The cost of buying a full NI year is typically £824, though this may vary depending on the year and your personal circumstances. If you’ve already contributed for part of that year, the cost is usually lower.
Before making voluntary contributions, consider your long-term financial plans. If retirement is still several years away, you may build up enough qualifying years naturally, making additional payments unnecessary.
You have until 5 April 2025 to voluntarily buy missing NI years from 2006 to 2016. After this deadline, you’ll only be able to fill in gaps from the last six tax years, so reviewing your record sooner rather than later could be beneficial.
The State Pension could form a foundation for your retirement income
While the full State Pension provides a guaranteed income, it may not be enough on its own to ensure a comfortable retirement, even with the 2025/26 increase. However, it can serve as a valuable foundation to build upon.
Having a reliable income stream can provide peace of mind, giving you confidence that you’ll be able to cover essential expenses. Many retirees supplement the State Pension with other assets, such as workplace pensions, savings, and investments. Bringing these income sources together in a structured retirement plan can help you create a sustainable financial strategy that meets your needs.
Contact Us to Discuss Your Retirement Income
If you’d like guidance on how to structure your retirement income alongside your State Pension, get in touch. Whether you’re ready to start making withdrawals or plan to keep working for a few more years, we can help you manage your pension and long-term financial security.
Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
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