What is the State Pension?

Definition of the State Pension

The State Pension is a weekly payment that the government issues to people who make National Insurance contributions once they reach State Pension age.

Your State Pension age is determined by your gender and date of birth. The total amount you receive depends on how long you’ve been making National Insurance contributions.

The new State Pension

Anyone who reached their State Pension age before 6th April 2016 and met the qualifying criteria receives the basic State Pension.

As of 6th April 2016, anyone who reaches their State Pension age and has 10 qualifying years on their National Insurance record receives the new State Pension. The maximum amount you can receive under the new State Pension is £168.60 per week. Find out more on HMRC’s website.

Self-employed and unsure about your pension options? Learn more about self-employed pensions in our step-by-step guide.

Got questions? Ask Emily!

FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.