The state pension is a regular income paid by the UK Government to those who have reached the state pension age. It’s a monthly payment paid straight into your bank account. It ensures that everyone has a basic amount of money to support them once retired.
You don’t normally receive the state pension automatically, a claim must be made in order to begin the process. Roughly four months before you reach the required age you will receive a letter and booklet from the pension service explaining how you are able to make the claim.
The money is funded by National Insurance contributions.
The money you receive doesn’t depend on how much you have earned but solely on your own National Insurance record. Currently, to qualify for it you need to have 35 years’ worth of National Insurance contributions or credit.
Please note, you can pay into a pension in addition to receiving a state pension, it will be paid to you as well as your chosen pension scheme.
For more information head to Pensions Advisory Service website
If you’re young and confused as to why you should be paying into a pension now, take a look at reasons to consider here.