Everything You Need to Know About the State Pension
Understand your UK State Pension – eligibility, payments, claiming steps, deferral options, and tax rules – with our latest guide.
As retirement approaches, understanding your State Pension is essential for planning a secure and fulfilling future. Despite its importance, many UK adults remain unclear about how the system works. Recent surveys show that half of UK adults don’t know how much they’ll receive, and nearly a third are unaware of their State Pension Age. Whether you’re nearing retirement or already claiming, our latest guide breaks down the key facts to help you make informed decisions.
Please click on the link below to read or download it. Ahead of that, here’s a brief summary of how it works.
How the State Pension Works and What You’ll Receive
The UK State Pension is based on your National Insurance contributions (NICs), with two main types: the basic State Pension (for those who reached pension age before 6 April 2016) and the new State Pension (for those reaching it after). In 2025/26, the full basic State Pension is £176.45 per week, while the full new State Pension is £230.25. These amounts rise annually under the “triple lock” system, which ensures increases based on inflation, average earnings, or 2.5%—whichever is highest. In April 2026, payments will rise by 4.7%, bringing the new State Pension to £241.05 per week.
Claiming, Deferring, and Living Abroad
You won’t receive your State Pension automatically—you must claim it. The process begins with an invitation letter from the Department for Work and Pensions about four months before you reach State Pension Age. You can apply online, by phone, or by post. If you choose to defer, your payments increase by 1% for every nine weeks you wait, potentially adding 5.8% annually. For those living abroad, you can still claim your pension, but eligibility for annual increases depends on your country of residence. Tax implications also vary, especially if you’re considered a UK tax resident or live in a country without a double taxation agreement.
Maximising Your Pension: What You Can Do Now
To understand your State Pension entitlement and make the most of this valuable source of retirement income, our guide outlines four useful steps you could take now. These include checking your forecast online, considering filling in gaps in your National Insurance record and staying informed about State Pension rule changes.
The final step is to seek professional financial advice.
A financial planner can help you understand and stay updated on the complex rules and tax regulations around retirement planning. They can explain how any changes might affect your State Pension entitlement and help you avoid costly mistakes or missed opportunities to maximise your retirement wealth.
By seeking financial advice, you’ll have access to holistic support and guidance that integrates your State Pension into your broader retirement plan, allowing you to prepare for the future you desire.
So, if you would like some help with your State Pension and retirement planning, please get in touch today.
Please note:
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the tie of writing (September 2025) and is subject to change in the future.
All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate tax planning.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The value of your investment (and any income from them) can go down as well as up, 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.
Workplace pensions are regulated by The Pensions Regulator.
Download the Kellands State Pension Guide