Retiring under the New State Pension system

For those retiring under the New State Pension system, your New State Pension will be calculated as the sum of:

  1. your starting amount, based on your National Insurance history before 6 April 2016, plus
  2. if your starting amount is lower than the full New State Pension (£175.20 a week, 2020-21) you will receive 1/35th of the full New State Pension for each year that you have a qualifying National Insurance record from April 2016.

For example, John has a been a member of a contracted out occupational scheme for 30 years. His starting amount is £134.24.

For each year he pays National Insurance or receives credits from April 2016 onwards, he will add £5 to this starting amount (£175.20/35).

If he makes nine years’ of National Insurance in this way, he will reach the maximum New State Pension.

The government will review these amounts every year. But please note that it is currently reviewing the ‘triple lock’ – which increases pensions by the best of 2.5%, earnings inflation or price inflation.

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