UK State Pension Calculator 2024-25

What is the full new State Pension in 2024/25?

The full new State Pension in 2024/25 is £221.20 per week, equivalent to £11,502.40 per year. This is the amount you receive if you have 35 or more qualifying National Insurance years. The State Pension increased by 8.5% in April 2024 under the Triple Lock guarantee, which increases the State Pension each year by the highest of average earnings growth, CPI inflation, or 2.5%. The State Pension age is currently 66 for both men and women, rising to 67 between 2026 and 2028 for those born between 6 April 1960 and 5 April 1977. Future increases to age 68 are under review.

How do I get qualifying NI years for the State Pension?

You earn a qualifying National Insurance year in any tax year where you either pay sufficient NI contributions or receive NI credits. You pay NI automatically if you are employed and earn above the lower earnings limit (£6,396/year in 2024/25), or if you are self-employed and pay Class 2/4 NI. NI credits are awarded automatically in certain circumstances: if you claim Child Benefit for a child under 12, claim certain sickness or disability benefits, are a registered carer, or are on jury service. If you are not working and not receiving credits, you can make voluntary Class 3 contributions (£17.45/week in 2024/25) to fill gaps. Each qualifying year of Class 3 costs about £907 and is worth approximately £6.35 per week of additional State Pension for life.

Can I defer my State Pension to get a higher amount?

Yes. If you delay claiming the State Pension after you reach State Pension age, your pension increases for every week you defer. Under the new State Pension, deferring adds 1% for every 9 weeks deferred — equivalent to approximately 5.8% per year. There is no maximum deferral period, and you can take the deferred pension as either higher weekly payments or (if deferred for at least 12 consecutive months) an untaxed lump sum. Deferring is most beneficial for those in good health who expect to live well into their eighties, as it takes several years to recoup the pension income foregone during deferral. There is no benefit to deferring if you are still working, as the State Pension is taxable and will be taxed on top of your employment income regardless.

Does the State Pension count towards my income tax?

Yes. The State Pension counts as taxable income, but it is paid gross without any tax deducted at source. In 2024/25, the full new State Pension (£11,502/year) is well below the personal allowance of £12,570, so most people with only the State Pension pay no income tax. However, if you have other pension income, part-time work, or savings interest, the combined income may exceed the personal allowance, making your State Pension effectively partially taxable. HMRC usually collects tax on the State Pension by adjusting the tax code applied to other sources of income such as a private pension or employment income, rather than asking for direct payment.