The Basic, New, and Additional State Pensions: a simple guide

05 September 2024

Written by Retirement Line

In the UK, the ‘New’ State Pension system was introduced on 6 April 2016, affecting everyone who reaches State Pension age from that date onwards. But some people are receiving the ‘Basic’ or ‘Additional’ State Pension. 

Some people’s entitlement falls across more than one type of State Pension. It means the State Pension system can be complex to say the least.

To help you understand the key differences, here's a straightforward guide to the Basic State Pension, the New State Pension, and the Additional State Pension. You can also read our Guide to the State Pension.

Please note: this is a summary guide - please seek further information from government agencies, charities or other pensions professionals if you need help with your State Pension arrangements or entitlement.

Basic State Pension

The Basic State Pension is the original form of the State Pension and applies to men born before 6 April 1951 and women born before 6 April 1953. If eligible, you will already be in receipt of this pension, unless you chose to defer it.

• If you are a man: To be eligible for the full basic State Pension you typically need 30 qualifying years of National Insurance (NI) contributions or credits if you were born between 1945 and 1951. This rises to 44 qualifying years if you were born before 1945. To get any Basic State Pension, you usually need one qualifying year or more if you were born between 1945 and 1951 – and 11 qualifying years if you were born before 1945.

• If you are a woman: You usually need 30 qualifying years of NI contributions or credits to get the full amount if you were born between 1950 and 1953. This rises to 39 qualifying years if you were born before 1950. To get any Basic State Pension, you usually need one qualifying year or more if you were born between 1950 and 1953 – and ten qualifying years if you were born before 1950.

If you have one or more qualifying years but not enough for the full Basic State Pension, then the amount you receive will be less than the current full amount of £169.50 per week. 

You might receive a higher Basic State Pension income if you:

• Have made additional NI contributions.

• Chosen to defer your pension.

• Are eligible for Additional State Pension payments (see further down).

• Increase your Basic State Pension through your spouse or civil partner, or inherit some of your spouse or civil partner’s State Pension when they die. Most increases are paid automatically, but if you think you have been missed then you can contact the Pensions Service.

New State Pension

The New State Pension applies to men born on or after 6 April 1951 and women born on or after 6 April 1953. It was introduced to simplify the State Pension system.

To be eligible, you normally need at least ten qualifying years of NI contributions or credits to receive any pension, and 35 years for the full amount. If you have between ten and 35 years, then the amount you receive will be worked out proportionately.

The full rate for the New State Pension is £221.20 per week. The exact amount you receive depends on your NI contribution record.

If you are not on track for the full UK State Pension, you may be able to boost the amount that you receive. You can do this by making voluntary National Insurance contributions to top them up. You may also find that you are entitled to NI credits due to poor health, being a carer, or receiving certain benefits in the past. You can read more about who is eligible for NI credits here.

Additional State Pension

The Additional State Pension provides an extra amount of money for those eligible. To qualify you must be a man born before 6 April 1951, or a woman born before 6 April 1953. 

If you were paying into the Additional State Pension before 2002, under what was known as SERPS (State Earnings Related Pension Scheme), you only qualified if you were working and paying NI. 

After 2002, when it became known as S2P (Second State Pension), it was more designed to help people who are unable to work or on low incomes, so you might have qualified if you were:

• Employed and earning at least £113 a week.

• Caring for one or more children below the age of 12 and claiming child benefit for them.

• Claiming carer's allowance or certain disability-related benefits.

It means that the amount of Additional State Pension you receive is determined by how much you earned and the duration of your contributions. 

One notable feature of the Additional State Pension was the option to ‘contract out’. This allowed employees to opt out of the Additional State Pension and instead build up pension benefits in a private or workplace pension scheme. 

The idea was that their alternative pension would provide benefits equivalent to or better than the Additional State Pension. By opting out, employees paid lower NI contributions, but this reduced or eliminated their entitlement to the Additional State Pension.

The Additional State Pension system was phased out with the introduction of the New State Pension on 6 April 2016. People who retired before that date should automatically receive any Additional State Pension they qualify for, without making a claim.

What is a ‘starting amount’ for the New State Pension?

If you reached State Pension age after 6 April 2016, your pension is calculated under the New State Pension system. However, if you made National Insurance contributions under both the old (Basic and Additional State Pension) and new systems, the government calculates a ‘starting amount’ for your New State Pension.

Your starting amount is a way to ensure a fair transition from the old to the new State Pension system, taking into account the contributions and entitlements you've built up under both systems. 

To set your starting amount, the government makes two calculations:

• What you would have been entitled to under the old State Pension system.

• What you would be entitled to under the New State Pension rules (if the New State Pension system had been in place throughout your working life).

Your starting amount is whichever is higher of these two calculations, with a deduction if you contracted out of the Additional State Pension. 

If your starting amount is less than the full New State Pension, you may be able to add more qualifying years to your NI record to increase your pension, up to the New State Pension amount.

If your starting amount is more than the full New State Pension, you will get an extra amount, known as a ‘protected payment’. 

Found out more about your State Pension entitlement

You can visit the GOV.UK website to check your pension forecast and find out the date that you are due to receive your State Pension income, and how much you will receive. You will need to register with the Government Gateway in order to use this service. 

To speak to someone about your State Pension, you can contact the Department of Work and Pensions by calling the government’s Pension Service on 0800 731 0469. They can provide all the information you need about your State Pension, including how to claim your State Pension and how to update your personal details with them.

Sources: 

Basic State Pension eligibility: The Basic State Pension. GOV.UK. Accessed 13 August 2024.

Basic State Pension amount: The Basic State Pension - how much you’ll get. GOV.UK. Accessed 13 August 2024.

New State Pension eligibility: The New State Pension. GOV.UK. Accessed 13 August 2024.

New State Pension amount: The New State Pension - what you’ll get. Accessed 13 August 2024.

Qualifying years for State Pension and State Pension starting amount: Your State Pension explained. GOV.UK. Accessed 13 August 2024.

Calculating starting amounts: How does the State Pension work and how much might you get? Money Helper. Accessed 13 August 2024.

Additional State Pension eligibility: The Additional State Pension GOV.UK. Accessed 13 August 2024.

Who qualified for Additional State Pension and Contracting out of Additional State Pension: Additional state pension explained. Which.co.uk. Accessed 13 August 2024.