How-to Guides » Get ready to retire

Make the most of the Basic State Pension

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1. The Basic State Pension is the first layer of income you get from the government when you retire. On current rates (for the 2010/11 tax year) it provides a maximum weekly income of £97.65. You'll only qualify for the maximum amount if you have built up enough qualifying years and paid enough National Insurance (NI) contributions before State Pension age.

2. To find out how much of the basic state pension you’re entitled to, get a State Pension forecast. If you’re more than four months away from retirement you can get a forecast online from The Pension Service.

3. You might find you don’t qualify for the full Basic State Pension if you don’t have enough qualifying years and there are gaps in your NI record. For each qualifying year that you have earned, you will get some basic State Pension. But don’t panic because you can make up the shortfall by buying missing years with voluntary NI contributions. Find out how to do that here.

4. You'll also need to think about when to take your basic state pension. You won't be entitled to start receiving any income until you reach the State Pension age.  You can work this out here.  However, by delaying when you take the state pension, you could receive a significantly higher income.

To find out more, take a look at Boost your pension by 52%!

5. On top of the Basic State Pension you may qualify for a host of other benefits when you retire depending on how much income you have. Extra cash for pensioners is available to cover the cost of heating, travel, health, TV licensing, as well as Pension Credit which can be a welcome boost to your State pension for low income pensioners.