How is the state pension calculated? Key rules impact how much you get

Not everyone will receive the full state pension, although many will take steps to ensure they do by the time they reach state pension age - currently 66. There are specific rules on how the state pension is calculated, which translate into payments for millions across the country.

Most people will have National Insurance contributions and credits made before April 6, 2016.

It is this record which is used to calculate a person’s “starting amount”, which forms part of their new state pension.

The starting amount is the highest of either:

The amount a person would get under the old state pension rules
The amount a person would get if the new state pension had been in place at the start of one’s working life.

Some may have a starting amount deduction if they were contracted out, which is the case for many people in certain types of workplace, personal or stakeholder pensions.

Certain individuals are more likely to have been contracted out than others, for example, if they worked in the public sector.

This includes:

The NHS
Local councils
Fire services
The civil service
Teaching
Police forces
The armed forces.

If a person has a starting amount less than the full new state pension, they can take action.

Some will be able to get more state pension by adding more qualifying years to their NI record after April 5, 2016.

This can be done until an individual reaches the full new state pension or state pension age - whichever is first.

The DWP explains: “Each qualifying year on your National Insurance record after April 5, 2016 will add about £5.29 a week to your new state pension.

“The exact amount you get is calculated by dividing £185.15 by 35 and then multiplying by the number of qualifying years after April 5, 2016.”

In some instances, a person will have a starting amount which is more than the full new state pension.

In this case, the part above the full new state pension is called the “protected payment”.

These individuals get this sum paid on top of their full new state pension.

To get any new state pension at all, Britons typically need at least 10 qualifying years on their National Insurance record.

For the full new state pension, individuals are usually required to have a total of 35 qualifying years or more.

Those with between 10 and 35 qualifying years will get a proportion of the state pension based on their record.

If a person is interested to find out more about their state pension, they could get a forecast.

The forecast service tells Britons:

How much state pension they could get
When they can get it
How to increase it, if possible.

Individuals can apply online, via post using the BR19 application form, or by calling the Future Pension Centre.

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