For many pensioners, the State Pension provides a foundation to build their retirement income. Whether you’re already claiming the State Pension or it’s still some years away, here’s what you need to know in 2025/26. 

In the 2025/26 tax year, you can claim the State Pension from the age of 66. However, the age will gradually start to increase from 6 May 2026 to 67, and it’s expected to rise further in the future. 

You won’t automatically receive the State Pension when you reach this age – you need to claim it. You should receive a letter a few months before you reach the State Pension Age and then you can apply online.

In some cases, you might decide to defer claiming the State Pension. For example, if you’re still in work and the State Pension income could push you into a higher tax bracket, you may delay claiming it. If you choose to do this, you’ll receive a higher income from the State Pension. 

The full new State Pension will provide a weekly income of £230.25 in 2025/26

How much you could receive from the State Pension is based on your National Insurance contributions (NICs) during your working life.

To be eligible for the full new State Pension, you will usually need to have 35 qualifying years on your National Insurance (NI) record. Qualifying years may include periods where you’re working and paying NICs or you may be entitled to NI credits if you’re unemployed, ill, a parent, or a carer. 

If you have between 10 and 35 qualifying years on your NI record, you’ll normally receive a portion of the new full State Pension. So, it’s important to be aware of your NI record before you reach State Pension Age so you can accurately forecast how much you’ll receive.

One of the reasons the State Pension is valuable is that it increases each tax year. As the cost of goods and services typically rises, this could help to preserve your spending power in retirement.

Under the triple lock, the State Pension increases by the highest of the following three measures:

  • Inflation
  • Wage growth
  • 2.5%

For the 2024/26 tax year, the triple lock means pensioners who receive the full new State Pension will benefit from a 4.1% boost to their income taking it to £230.25 a week, or around £11,970 a year. 

Understanding when you could claim the State Pension and how much you might receive is often important for creating a financial plan that suits your goals. You can use the government’s State Pension forecast tool, but keep in mind both the State Pension Age and how the income is calculated could change in the future. 

Filling in National Insurance gaps could boost your State Pension income 

As your NI record affects your State Pension income, you might benefit from filling in gaps if you don’t have the 35 qualifying years you need to receive the full amount.

So, if you’ve taken a career break in the past, you may benefit from checking your NI record now. The cost of buying a full NI year is usually £824 but may vary depending on the year you’re topping up and your circumstances. If you paid NI for a portion of the year you’re topping up, the cost will typically be lower.

Before you fill in any gaps, consider your long-term plans. In some cases, it won’t make financial sense to fill in the gaps. For example, if retirement is still several years away, you might eventually have enough qualifying NI years without making voluntary payments. 

You only have until 5 April 2025 to voluntarily buy missing NI years between 2006 and 2016. After this date, you’ll only be able to fill in gaps from the last six tax years. 

The State Pension could form a foundation for your retirement income 

While the full State Pension might not provide enough income to retire comfortably on, even after the 2025/26 increase, it may be a useful foundation to build on. 

Having a reliable income could offer peace of mind and mean you’re confident that you can pay for essential outgoings.

Many retirees will use other assets, from workplace pensions to savings and investments to supplement the income the State Pension delivers. Bringing together these different income streams in a retirement plan could help you understand how to create a sustainable income that meets your needs. 

Contact us to talk about your retirement income

If you have questions about how to create an income in retirement to supplement your State Pension, please get in touch. We could help you manage your pension, whether you’re ready to start making withdrawals or plan to continue working for several years. 

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, 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.  

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