New state pension 


The new flat rate single-tier state pension was launched on 6 April 2016, replacing the basic state pension and additional state pension. Employer-provided pension schemes can no longer contract out of the state pension and receive a national insurance rebate. 


Although the flat rate of the new pension has been widely promoted as £155.65 per week (2016-17), many employees will not receive this full amount. The pension will be lower where there are gaps in the national insurance record, either because the person was not working, worked overseas or worked for an employer that “contracted out” of the additional state pension because they were paying into a more generous company scheme. 


Thirty five complete years of NIC contributions or credits are needed for the full new state pension, and 10 complete years are needed to qualify for any new state pension at all. It is possible to request a National Insurance Statement online to check for gaps in your national insurance record. In some cases, it will be possible to pay voluntary contributions to cover gaps. 


The state pension age is currently 65 for men and is gradually increasing for women from 60 to 65. It will be 63 for women from April 2016. From December 2018, the state pension age will start to increase for both men and women, to reach 66 by October 2020. A further increase to age 67 is planned between 2026 and 2028. In March 2016, the government announced a further review of the state pension age, although this will not affect those workers (male and female) who reach 67 by 2028.