The State Pension: what you will get, and the £22 problem

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For most people the State Pension is the foundation the rest of the plan sits on. It is also the part fewest people have actually checked. Two minutes on the government forecast tool is the best-value thing you can do before any other retirement decision.

How much is the State Pension in 2026/27?

The full new State Pension is £241.30 a week, or about £12,548 a year. It rose by 4.8% in April 2026 under the triple lock, which increases the State Pension each year by the highest of average earnings growth, September's inflation figure, or 2.5%.

You need around 35 qualifying years of National Insurance for the full amount, and at least 10 to get anything at all. Very few people have a perfectly complete record.

Why is the State Pension nearly at the personal allowance?

The personal allowance — the amount you can earn before paying income tax — has been frozen at £12,570 since 2021/22 and is due to stay frozen. The full new State Pension is now about £12,548.

That leaves a gap of roughly £22 a year. If the triple lock delivers another above-inflation rise while the allowance stays put, the State Pension on its own will exceed the personal allowance — and pensioners with no other income at all would, for the first time, have a tax liability on it.

For anyone with a private pension on top, the practical point is different but related: your allowance is very nearly used up before your own pensions pay you a penny. That matters a great deal for the order in which you draw money, and it is one of the more useful things planning can fix.

How do you check your State Pension forecast and fill gaps?

Your State Pension forecast on GOV.UK shows what you are on course for and lists any gap years in your National Insurance record. Gaps are common if you were self-employed, took time out to raise children, worked abroad, or had years of low earnings.

You can usually pay voluntary Class 3 contributions to fill gaps in the past six tax years, with the deadline falling on 5 April each year. In 2026/27 a full year costs £17.75 a week — about £923.

Buying a missing year is often, though not always, good value: it can add a meaningful slice of inflation-linked income for life. But it is not worth doing if you are already on track for the full amount, or if the year would not actually count. Check the forecast before paying anything.

Should you defer?

If you delay claiming, your State Pension increases by 1% for every nine weeks deferred — just under 5.8% a year. That is a guaranteed, inflation-linked uplift, which is hard to find anywhere else.

The catch is the break-even point. It typically takes around 17 to 18 years of the higher payment to recover the income you gave up by waiting. Deferring can suit someone still working, in good health, with other income to live on. It suits far fewer people who need the money now.

Where does the State Pension fit in a retirement plan?

Because it is secure and rises each year, the State Pension is usually the right thing to set against your essential spending. Working out what it covers, and what is left for your private pensions and savings to fund, is where a retirement plan properly begins.

Sources: State Pension rates are from GOV.UK, The new State Pension: what you’ll get; voluntary National Insurance and deferral are covered in How to increase your retirement income. Personal allowance figures are from Income Tax rates and Personal Allowances.

This article is general information, not personal advice. State Pension rates, National Insurance rules, tax thresholds and allowances are those applying in the 2026/27 tax year and may change in future. Tax treatment depends on individual circumstances. The information contained within this article was accurate at the date of publication and is subject to change. Reviewed by Bright Wealth before publication.