Video

Newsletters

Competitions

Quizzes

Offers

Social Network

Message Boards

Lifestyle detox
Replenish, refresh, revitalise

Holiday advice
Your questions answered

3D baby
Amazing images from the womb

Work & Money

Topics

Succeeding & Surviving

Finding a Job

Community

Computers and Internet

Money

Savings
Budgeting
Property
Family
Insurance
Debt

Hot stuff

Play celebrity baby match

Is debt affecting you?

Newsletters

Promotions

State pension

The basic State Pension is paid when you reach the state pension age. The amount you get depends on the number of years you've paid - or been treated as paying - National Insurance contributions

Each year, if you are working, and earning more than a set amount, part of your income is deducted as National Insurance contributions (NICs). If you work for a company, your employer also pays NICs. Part of your NICs goes towards paying for the State Pension.

Men need to pay NICs for 44 years to get a full basic State Pension. Women, who reach 60 before 2010, need to pay them for 39 years. But the State Pension age for women will change gradually between 2010 and 2020 from 60 to 65, so the number of years women need to pay NIC's to get a full State Pension will gradually increase to 44 too.

State Pension and any other state benefits:

When do I get my State Pension?
You can claim your State Pension when you reach state pension age. For men, this is 65. For women, it is currently 60, but from 2010 to 2020 will gradually increase so it is 65 too. You can delay taking the pension for a few years if you don't need the income. As a result you will be paid a higher amount.

How much is the State Pension?
In 2003/04 the full basic State Pension is £77.45 a week for a single person and £123.80 a week for a couple.

Second State Pension
You may also qualify for an additional State Pension. This is known as the State Second Pension (S2P), and is payable to employees - but is not currently payable if you are self-employed. It was introduced in April 2002 (when it replaced the state earnings related pension scheme known as SERPS). Call the State Pension Forecasting team on 0845 300 0168 for a forecast of what you may be entitled to from the state.

I'm self-employed how can I boost my pension?
Most self-employed people will qualify for at least some of the Basic State Pension, however if you are self-employed you won't qualify for a Second State Pension or SERPS (although there are plans being developed to allow the self-employed to contribute to the Second State Pension).

To boost your pension income you may want to think about taking out a private pension of some sort. Some of your options may include taking out a Personal Pension and/or a Stakeholder Pension. The Pension Service has a downloadable guide to pensions for the self-employed. For more information visit www.thepensionservice.gov.uk