New State Pension myth busting
Updated 23 June 2016
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This publication is available at https://www.gov.uk/government/publications/new-state-pension-handouts/new-state-pension-myth-busting
Your State Pension is changing
This applies to you if you are:
- a man born on or after 6 April 1951
- a woman born on or after 6 April 1953
Everyone will get the same amount of new State Pension
False
The amount of new State Pension a person gets will depend on their own individual National Insurance (NI) record, so not everyone will get the same amount. For people with an NI record from before 6 April 2016, that record will continue to be taken into account when calculating the amount of State Pension they will get.
However, everyone without an NI record before 6 April 2016 will get the same full rate as each other if they have 35 qualifying years on their NI record when they reach State Pension age. This is because each extra qualifying year added to their NI record after 6 April 2016 will add 1/35th of the full amount of new State Pension, up to the full amount or when they reach State Pension age.
The introduction of new State Pension will affect everyone’s State Pension
False
The new State Pension is only being introduced for people who reached State Pension age on or after 6 April 2016. So if you reached State Pension age before this date you will get a State Pension calculated under the old system (even if you have not yet claimed it).
The new State Pension will increase my State Pension age
False
The introduction of new State Pension is not connected to changes in State Pension age. The most recent changes to State Pension age were legislated by Parliament before the introduction of the new State Pension. If you are unsure of your State Pension age you can find out easily using the online State Pension age calculator.
I will get a new State Pension even if I never paid National Insurance or got National Insurance credits
False
To get any new State Pension you will normally need at least 10 qualifying years of contributions or credits on your National Insurance record
The new State Pension will be just as complicated as the old system
False
The introduction of the new State Pension will make it easier for people to know from a younger age what they will get when they reach State Pension age. The previous State Pension system became increasingly complicated over the years and eventually had many different elements making it hard for people to understand how much State Pension they could get. We can’t just sweep away the past so any NI contributions or credits from before 6 April 2016 will be taken into account when calculating the amount of new State Pension a person will get. But for people who started work for the first time on or after 6 April 2016, things will be much simpler as they will only build up National Insurance under the new system and each qualifying year on their NI record will give them 1/35th of the full rate of new State Pension until they reach State Pension age or the value of the full rate.
Know the facts
visit gov.uk/yourstatepension