New state pension 


The new flat rate single-tier state pension was launched in April 2016, replacing the basic state pension and additional state pension for anyone reaching the state pension age after that date. Employer-provided pension schemes can no longer contract out of the state pension and receive a National Insurance rebate. 


The weekly flat rate of the new state pension is £164.35 from April 2018, but many will not receive this full amount. The pension will be lower if there are gaps in the National Insurance record, either because the person was not working, worked overseas or for an employer that “contracted out” of the additional state pension because they were paying into a more generous company scheme. 




Thirty-five full years of NIC contributions or credits are needed for the full new state pension, and 10 complete years are needed for any new state pension at all. A National Insurance Statement can be requested online to check for gaps in your NIC record. Sometimes voluntary contributions can be paid to cover any gaps. 




The state pension age is currently 65 for men and is gradually increasing for women, due to equalise at 65 for both men and women by November 2018. From December 2018, it will start to rise for both men and women, to reach 66 by October 2020. A further increase to age 67 is planned between 2026 and 2028. Following a government review in July 2017, the government has announced a further increase from 67 to 68 to take place in 2037-39, seven years earlier than the planned date of 2044-46.