The full new State Pension (for 35 or more qualifying years) wis £159.55 per week in 2017/18. The amount you will be entitled to will be based on the number of qualifying years on your NI record.
So that nobody loses out due to the change, when your entitlement is calculated, there will be a 'starting amount' which will be based on your NI record as at 5 April 2016. The Pension Service will work out:
- the amount you would have been entitled to under the old scheme
- the amount you would have got if the new scheme had been in place at the start of your working life.
Your 'starting amount' will be the higher of these two amounts.
Some people may have a starting amount which is more than the full new State Pension due to the basic and additional pension they have built up. The extra will be paid on top of the full new State Pension and will be protected.
If your starting amount is less than the full new State Pension, you may be able to build up more pension for any qualifying years of contributions or credits between 6 April 2016 and when you reach State Pension age. No further amounts will be added once you reach the full new State Pension amount, or when you reach State Pension age, whichever happens first.
If you have been 'contracted out' of the state scheme at any time in your working life the amount you receive under the new state pension may be reduced. Your starting amount will be reduced because under the contracted out scheme, you would have paid lower NI contributions - or some of the NI contributions you paid were used to contribute to your stakeholder or personal pension instead of the additional State Pension.
For more information on the new State Pension you can visit the gov.uk website.