What is the State Pension? The basics

You might not think about it every time it comes off your payslip, but your National Insurance isn’t just another deduction. It’s helping you build something that will matter later on - your State Pension.

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What is the State Pension?

Think of the State Pension as your built-in safety net. It’s money paid from the government once you reach the State Pension age - currently 66 for everyone - to help provide you with financial support for when you reach retirement. And it’s intended to cover those everyday living expenses, like food, bills and costs of running your home, that don’t stop just because work does.

How does it work?

To qualify, you’ll need to have made sufficient National Insurance (NI) contributions during your working life. NI contributions are usually deducted from your salary and count towards your State Pension entitlement rather than being directly ‘saved’ or invested for you.

And the amount you get depends on how many qualifying years of contributions or credits you have. To get the full amount (for anyone approaching retirement) you usually need 35 qualifying years. From 6 April 2026, thanks to the triple lock, the full new State Pension is £241.30 per week – or £12,540 a year - which is paid every four weeks.

The types of State Pension

You’ll receive one of two types of State Pension, depending on when you reach State Pension age:

• Basic State Pension – is for those who reached pension age before 6 April 2016. To receive the full amount, you needed at least 30 qualifying years of NI contributions.
• New State Pension – is for those who reached pension age on or after 6 April 2016. You usually need 35 qualifying years to get the full amount, with at least 10 years required to get anything at all.

The future of the State Pension

The UK faces challenges in funding the State Pension, mainly due to an ageing population. Fewer young workers are contributing through NI payments, while more people are living longer and drawing pensions for longer periods.

As of 6 April 2026, the State Pension will increase again. This is thanks to the triple lock, which basically means the State Pension goes up by whichever is highest: inflation, wage growth or 2.5%. Wage growth (at 4.8%) was the highest measure this time, so the full new State Pension will rise by about £11 a week, taking it from £230.25 to £241.30.

These larger increases have sparked more debate about whether the triple lock can continue in the same way in future. The policy is still in place, but higher payments cost the government more, which is why its long-term future keeps being discussed.

This added pressure on public finances has seen the State Pension age gradually increasing. Under current legislation, it will rise to 67 between 2026 and 2028, and to 68 between 2044 and 2046. The government regularly reviews this through the Pensions Act.

Watch: State Pension in 2026/27 - and what will it be worth in the future?

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. .