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If you currently get the State Pension

If you already receive the State Pension or will reach State Pension age before 6 April 2010, these changes will not affect you very much. One change that will affect you is that the basic State Pension will increase in line with earnings from 2012 at the earliest. This means it should rise more quickly each year than it does now.

Basic State Pension changes

The basic State Pension is the retirement income you can claim once you have reached State Pension age if you have paid or been credited with sufficient National Insurance contributions during your working life.

Key changes to the basic State Pension for people reaching State Pension age on or after 6 April 2010 are:

• reducing the number of qualifying years needed for a full basic State Pension to 30
• any number of qualifying years will give entitlement to at least some basic State Pension,  this can be achieved through paid or ‘credited’ National Insurance contributions

Parents and carers

People reaching State Pension age on or after 6 April 2010 may be able to build up entitlement to the State Pension through new National Insurance contribution credits. Those who will be eligible for this are: 

• parents with a dependent child under 12 years of age 
• approved foster carers 
• people caring for at least 20 hours per week for severely disabled people

Any awards of Home Responsibilities Protection (HRP) during past years will be converted into years of credits.

State Pension age changes

State Pension age is the earliest age at which you can claim your State Pension.

Currently, the State Pension age is 65 for men and 60 for women born before 6 April 1950. However, the State Pension age for women born on or after 6 April 1950 will gradually increase from 60 to 65 between 2010 and 2020.

The State Pension age for men and women will further increase from 65 to 68 years between 2024 and 2046. This will affect anyone born on or after 6 April 1959.

• Calculate your State Pension age on The Pension Service website Opens new window

Additional State Pension changes

The additional State Pension is paid in addition to the basic State Pension. It is also called the State Second Pension and was introduced to reform the State Earnings Related Pension Scheme (SERPS). Whether you are entitled to it depends on your individual circumstances.

Key changes to the additional State Pension will include: 

• allowing people to combine contributions from earnings with National Insurance credits for caring in order to gain qualifying years of the additional State Pension from 2010
• allowing people caring for children up to the age of 12, approved foster carers and those who spend at least 20 hours a week caring for severely disabled people to build up entitlement from 2010
• changing the method of accrual so that in the future it will provide a simple, flat-rate weekly top-up to the basic State Pension; the current earnings related element will be withdrawn so that people will build up entitlement on a flat-rate basis by around 2030 or shortly afterwards

It is possible to contract out or opt out of the additional State Pension if you are in a private pension scheme that meets certain conditions. From 2012 at the earliest, contracting out into a private pension scheme on a defined contribution basis will no longer be allowed.

• More about contracting out of the additional State Pension Opens new window

Adult dependency increase changes

From 6 April 2010, it will no longer be possible to claim an increase of your State Pension for another adult. This is an ‘adult dependency increase’. It is an increase in your State Pension for a wife, husband or someone who is looking after your children, if he or she is considered to be financially dependent on you.

If you are already entitled to this increase on 5 April 2010, you will be able to keep it until you no longer meet the conditions for the increase or until 5 April 2020, whichever is first.

If you claim your State Pension on or after 6 April 2010, you will not be able to claim an increase for an adult who depends on you financially when you finally claim your State Pension.

• Find out more about adult dependency increases and the changes to the rules Opens new window

Pension Credit changes

If you are 60 or over and live in Great Britain you may be entitled to Pension Credit. It guarantees people aged 60 or over a minimum level of income. It also rewards those who have made modest savings for their retirement.

From 2008, the standard minimum guarantee in Pension Credit will continue to rise in line with earnings.

• Understanding Pension Credit

More useful links

• Changes to pensions on The Pension Service website Opens new window