How much State Pension will I get at 66? – your complete guide

If you’re asking yourself, “How much State Pension will I get at 66?” Moneyfarm can help you find out. In this article, you’ll find essential insights for those born in 1956, 1957, and 1958, plus everything you need to know on the subject of  State Pension here in the UK.

When can I retire if I was born in 1956? If you were born in 1956 and are a UK citizen, you can currently become eligible to receive the State Pension at age 66. However, if you take control of your private pension savings early enough, you might not have to wait for the State Pension to retire.

Knowing when you qualify for the State Pension can help you plan your financial future and achieve a better quality of life in retirement.

Complicated pension rules are vulnerable to change, and it can be difficult to keep up with the evolving landscape. Not knowing something as simple as, “How much State Pension will I get at 66?” can disrupt your retirement savings plans, impact how much you have to save for retirement, or even delay when you plan to hang up your working boots.

Currently, most people don’t have to reach retirement age to access their private pension funds. Instead, they can access their pension savings from the age of 55. You can then decide to take a 25% tax-free lump sum or keep it invested in the market. While many would like to retire at the age of 55, an additional 10 years of saving into your pension could make a real difference to your quality of life when you retire.

What is State Pension, and how does it work?

The State Pension in the UK is a regular payment from the government that most people can claim when they reach the State Pension age. It is a type of financial assistance intended to give retirees a minimal income. It is a flat-rate pension, which means that those who qualify under the same circumstances get the same State Pension amount, regardless of their income or how much they have saved.

The current State Pension age is 66 for both men and women. To qualify for the UK State Pension, you must:

• Be a UK resident.
• Reach the State Pension age.
• Have a certain number of qualifying years based on your National Insurance record.

The answer to the question “How much State Pension will I get at 66?” will depend on your date of birth and the number of years you’ve been paying National Insurance contributions. For example, if you were born on or after 6 April 1951, you will need 35 qualifying years. However, if you do not have enough qualifying years, you may still be able to get some State Pension.

Whether you get the basic State Pension or the new State Pension depends on the same criteria. The full new State Pension for 2024/25 is £221.20 per week, while the full basic State Pension is £169.50 per week.

The State Pension age has been transformed since 2010, when people widely accepted that men would retire later than women. This has been reformed, with the female State Pension age rising to 65 from 2010-2018 and then 66, 67 and 68 for both men and women.

Three months before you reach State Pension age, you’ll get a letter telling you what to do. At this point, you can decide to either take your State Pension or delay it.

By deferring your State Pension, you could increase the amount you get as a weekly income when you come to claim it. The extra State Pension amount is paid with your regular State Pension payment.

As long as you defer for at least nine weeks, your State Pension will increase each week you defer. For every nine weeks you defer, your State Pension increases by the equivalent of 1%. This works out to just under 5.8% every full year.

The State Pension is undoubtedly an excellent supplement to the retirement income you receive from a personal pension, but it’s important you ask yourself whether you can comfortably rely on this during retirement.

How to apply for State Pension at 66

Before you reach State Pension age (currently 66 but due to start rising from May 5, 2026), the UK government should contact you to advise you will soon be of eligible age to claim your state pension. This normally happens approximately several months before your 66^th birthday.  The letter, when you receive it, contains instructions on how to apply. The information you’ll be required to supply includes:

• The date you most recently got married, formed a civil partnership or got divorced.
• The dates of any spells spent living or working abroad.
• Details of your bank or building society.

If you haven’t received your application letter three months before your 66th birthday, you can request an application code online.

If you prefer, you can phone the Pension Service on 0800 731 7898, text them on 0800 731 7339, or use BT’s Relay UK service on 18001 then 0800 731 7898 if you have problems hearing or speaking on the phone. For full details of how to claim, visit the Gov.uk’s state pension/how to claim web page.

How is the new State Pension calculated?

If you are wondering, “How much State Pension will I get at 66?” it is calculated based on the number of qualifying years you have on your National Insurance record. A qualifying year is a year in which you have paid or been credited with National Insurance contributions.

The full new State Pension for 2024/25 is £221.20 weekly. To calculate your new State Pension, you will need to divide the full new State Pension by 35 and then multiply by the number of qualifying years you have. For example, with 20 qualifying years of NI, you will receive 57.41% of the full new State Pension, which amounts to £126.40 per week.

The State Pension is subject to change based on a yearly government review. At present, the review uses the triple lock mechanism, which resulted in a State Pension increase for 2024 of 8.5%.

Remember that when you start receiving your State Pension, you will also have to consider your State Pension tax bill. All pension income is subject to income tax according to the standard income tax bands.

The Impact of employment history on state pension

The way most people make contributions to accumulate their NI qualifying years is via their employment. If you are employed, your employer makes a contribution, and they also deduct your part of the contribution from your salary. It’s standard practice within the PAYE system. If you’re self-employed it is down to you to pay 100% of your contribution.

Knowing how the State Pension is calculated now, it is clear to see the importance of the link between your employment history and its impact on the State Pension. The money you earn throughout your employment history facilitates securing the qualifying years you need to become eligible to claim your State Pension when the time comes.

Comparison of State Pension amounts by region

How much is the State Pension, and does it vary by region? are common questions. As discussed above, the amount you get depends on your National Insurance record. But assuming the comparison is between people with identical NI records, the State Pension amount they receive will be the same regardless of where they live in the UK.

When it comes to comparing state pensions country by country in Europe, the UK State Pension amount is listed in 15^th place.

How Many Years of National Insurance Contributions do you need to qualify for the full new State Pension?

You need at least 10 qualifying years of National Insurance contributions to qualify for the full new State Pension. The 10 years do not have to be accumulated consecutively. For a man to qualify for the new State Pension, he must be born on or after 6 April 1951, while a woman must be born on or after 6 April 1953. To get the full new State Pension, you need 35 qualifying years. If you have less than 35 qualifying years, you will get a proportion of the full State Pension amount.

When will I get my State Pension?

Now that you can answer this question, ‘How much State Pension will I get at 66?’ it’s important to note that State Pension differs from personal or workplace pensions. Once you hit the State Pension age (currently 66), the government will pay you a regular income throughout your retirement in accordance with your NI contributions record.

You can use the tool on the government website to check when you’ll reach the State Pension age, your pension credit qualifying age and when you’ll be eligible for your free bus pass.

Born in 1956: When can I retire in the UK?

You can retire at any time if you were born in 1956. However, you’ll only be able to claim your State Pension at age 66. If you were born on 1 July 1956, you’ll be eligible for your State Pension on 1 July 2022.

Born in 1957: When can I retire in the UK?

You can retire at any time if you were born in 1957, but can only start receiving the State Pension at age 66. If you were born on 15 October 1957, you will be able to claim your State Pension from 15 October 2023.

Born in 1958: When can I retire in the UK?

People born in 1958 can claim their State Pension at age 66. If you were born on 07 January 1957, you will be able to claim your State Pension from 07 January 2024.

Before the next eligibility age increase (in 2028), those born between 1957 and 1960 will be deemed of State Pension age.

The UK government is gradually increasing the State Pension age to ensure its sustainability in the long term. For people born after 1950, it is scheduled to rise to 67 between 2026 and 2028.

When will the State Pension age rise to 67?

The State Pension age (SPA) for men and women born on or after 6 April 1960 will increase from 66 to 67 between 2026 and 2028. Therefore, if you were born after April 1960, you will be eligible to start receiving your State Pension in April 2027. For people born from 1961 onwards, SPA will rise to 67 in 2028

When can I retire if I was born in 1956 and get my state pension if the State Pension age changes to 67? Well, you will receive your pension when you reach retirement age in 2022 at the age of 66; the changes in state pension will not affect you.

When will the State Pension age rise to 68?

There can be little doubt that SPA will increase again in the near future. However, according to the “State Pension Age Review” published by the DWP on March 30, 2023, it was stated that a further review will take place to reconsider a rise in SPA to 68 within two years of the next Parliament.

Difference between old and new state pensions?

The basic and new State Pensions are two different systems of state-provided retirement benefits, and there are, therefore, differences between them.

Qualifying Years: To qualify for the old State Pension, you must have at least 30 qualifying years of National Insurance contributions to receive the full State Pension. For the new State Pension, you need to have at least 10 qualifying years to be eligible and 35 qualifying years of National Insurance contributions to receive the full State Pension.

Pension Amount: The maximum amount for the new State Pension is more than the maximum for the old State Pension, and the new State Pension provides a higher flat-rate amount for those who meet the minimum qualifying years. However, the State Pension amount under both systems relies on an individual’s National Insurance record.

Pension Calculations: The old State Pension calculation was based on the National Insurance contributions and additional State Pension based on your earnings (additional means-tested benefits). In contrast, the new State Pension calculation process uses a single-tier pension based on an individual’s National Insurance record.

Additional Pension: Under the old State Pension, individuals had the opportunity to build additional State Pensions through schemes like SERPS or S2P, which were earnings-related. In contrast, the new State Pension consolidates these additional pensions into a single-tier system, streamlining the process.

Concerns relating to changes to State Pension schemes in 2021

We have been approached several times regarding concerns about changes to State Pension schemes made in 2021. There is no reason to worry about questions like, “When will I get my State Pension?” or “How much State Pension will I get?” because, in the main, the Act relates to private pensions and pension providers.

However, it does contain information which you might find useful on the subject of state benefits. To find out more, visit the legislation.gov.uk website or download the pdf summary

Regular investment plans for investors

The two golden rules of retirement savings are starting as early as possible and saving as much as possible. But when navigating through retirement planning, how do you know if you’re doing enough to be on track to have the retirement you want?

Let’s examine three regular investment plans to help you understand whether you’re on track to get your desired retirement income. These savings plans of £400 a month, £800 a month and £1,600 a month, net of tax relief or employer contributions, fall well within the top annual allowance threshold and represent contribution levels reflective of different life stages.

Some corporate schemes offer generous top-ups to pension contributions, which may be worth taking advantage of.

As you get older, your priorities change, and some of your big outgoings will stop – you’ll pay your mortgage off, and your children will become more independent. You should look to put as much of this extra cash into your pension to boost your retirement income.

By setting aside as much as you can each month, you could be on track to a comfortable retirement income in less time than you think.

According to the FCA, it’s reasonable to expect that you can earn an annualised return of at least 5% from a balanced and diversified portfolio over the long term. Assuming 5% is your return, you can withdraw 5% from your pension each year. So, theoretically, you’ll never deplete the nominal value of your pension.

That means that for an annual income of £25,000, you’ll need a pension pot worth £500,000. For £37,500 a year, you’ll need £750,000.

Understanding the Impact of Brexit on State Pension in the UK

Brexit has been a topic of significant concern for many UK citizens, especially those nearing retirement age. One question that often arises is, “When can I retire if I was born in 1956?”.

While the State Pension age remains at 66, Brexit has introduced some uncertainties that could affect your retirement plans.

Firstly, Brexit has led to fluctuations in the value of the pound, which could impact the real value of your State Pension over time. If you’re considering retiring abroad, especially in an EU country, answering the question, “How much State Pension will I get at 66?” relies partly on the exchange rate of the British pound in relation to your local currency.

Secondly, the UK’s exit from the EU has raised questions about the “triple lock” guarantee. This mechanism ensures that the State Pension rises by the highest of three measures: inflation, average earnings, or a minimum of 2.5%. While the government has committed to maintaining the triple lock, continuing economic pressures post-Brexit could force further review.

Lastly, if you’ve worked in other EU countries, Brexit could affect how those years are counted towards your UK State Pension. Prior to Brexit, years worked in the EU were aggregated with UK National Insurance contributions to calculate your State Pension. However, the rules have changed, and it’s crucial to check how this might affect your entitlement. It’s essential to stay updated and possibly consult a financial advisor to understand how Brexit could impact your retirement plans.

How to plan for retirement

By taking control of your pension savings plan early enough, you can have more flexibility over when you retire. Follow these four simple steps and get a step closer to making sure that the answer to “How much State Pension will I get at 66?” is a sum that helps you to achieve the retirement lifestyle for which you’re hoping.

• Get cost-efficient investment advice – Building the right portfolio that reflects your goals, financial background, and appetite for risk can be challenging. Cost-efficient investment advice can help you make the right financial decisions for your future.
• Invest in a pension that changes to reflect you – Priorities change over time, and your investments must reflect that change. At Moneyfarm, we regularly run our suitability algorithms to ensure your investments put you in the best position for success. If they don’t, we’ll match you with the portfolio that does. This is all free of charge and part of our ongoing commitment to help you reach your goals.
• Consolidate your pensions – It can be difficult to manage several different pensions. By transferring old pensions into one place, you can lower costs and comprehend what you have. By knowing the value of your pension, you can make the necessary adjustments to reach your goals.
• Make the most of generous tax benefits – Basic tax relief means that most people get a 25% top-up to each contribution they make from the government. The tax relief system encourages Brits to save for their future, providing basic rate taxpayers with 20% tax relief, higher rate taxpayers with 40%, and additional rate taxpayers with 45% tax relief. If you fall in the higher or additional bucket, make sure you apply for further relief through HMRC to make the most of your money.

Moneyfarm’s free Pension Drawdown Service helps you make confident, stress-free decisions to stay in control of your retirement income.

You can use Moneyfarm’s Pension Calculator to help you work out how much you need to be saving a month to get the income you want in retirement or start one of Moneyfarm’s regular investment plans.

Factoring in your question of, “How much State Pension will I get at 66?” is an important part of retirement planning, and trying to ensure you will have enough overall income to keep everyone happy is no easy thing. If you need any help, talk to an independent financial adviser and be sure to read our pension guide.

Tips to maximize your State Pension benefits

The Department for Work and Pensions (DWP), under the auspices of the UK government, is responsible for managing and running the State Pension. As a state pensioner or a state pensioner in waiting, you have little input into policy changes.

However, there are four tips we can offer in terms of maximising how much pension you’ll get.

1. Ensure you accumulate the necessary amount of NI qualifying years. To get the full amount of the new State Pension (£220.21 per month), you need 35 years.
2. Check out if you’re eligible for National Insurance credits.
3. If there are any gaps in your NI qualifying years fill them by paying voluntary NI contributions.
4. Defer your state pension. This only applies if you have other income to live off after you reach state pension age – for example, from continued working or other forms of investment income. Deferring SP can help to ensure you stay in the lowest tax bracket.

One extra tip relates to the self-employed. If you are in full employment, you and your employer will automatically make NI Class 1 contributions; if you are self-employed, you should consider all of the four tips given above, but with tips 1 to 3, take them on board with regard to NI class 2 and 4 contributions.

You can get a State Pension forecast if you go to the “check your State Pension page” on the Gov.uk website.

Supplement your retirement income with a stocks and shares ISA

If, having used our pension calculator and the answer to the question, “How much State Pension will I get at 66?” doesn’t look like it will be enough, even with a SIPP or workplace pension added, you still might want to consider your options. The problem is that the taxman will take his share, so consider opening a stocks and shares ISA. These are tax wrappers, and any income you receive from one will be completely tax-free.

With private pensions (including workplace pensions), you can save up to £60,000 per annum tax-free. This might sound like a lot of money if you are in the upper earnings bracket. But once the taxman has claimed 40% or 45% of any income in your retirement, you will be saying goodbye to a huge chunk of your retirement income if you’re a higher or additional rate taxpayer.

However, if you put up to £20,000 per annum into a stocks and shares ISA, “How much state pension will I get at 66?” becomes a little less critical because your ISA fund will grow significantly over the long term thanks to compound interest, and any earnings you make from share dividends or any withdrawals you make will be tax-free.

Even if you are not a high earner, consider this tax-free income option as part of your retirement income plan.

Financial planning tips for post-retirement life

We cannot emphasise strongly enough the importance of financial planning for your retirement,. Here are a few tips to help you get it right.

• Think about the lifestyle you hope to enjoy in retirement and research how much it will cost.
• Ensure your workplace pension provider sends you annual statements covering how your pension is performing and forecasting the final pot size.
• If it is not sufficient, consider other investment options such as a SIPP or stocks and shares ISA.
• Use a pension calculator to establish how much you need to be saving per annum to reach the pension pot size needed.
• If your current income is not enough, consider ways of increasing it.
• Don’t forget to take into account income tax deductions from pension income.
• Remember to include your State Pension in your planning

Consider talking to a financial advisor about financial planning for your retirement.

FAQ

How long after my 66th birthday will I get my State Pension?

After claiming your State Pension, the first payment will usually be within five weeks, and you will receive the full payment every four weeks after that.

How much State Pension will I get?

If you’ve maximised your NI qualifying years, the full new State Pension is currently £220.21 per week. The basic State Pension is £169.50 per week.

Can I retire at 60 and claim a State Pension in the UK?

No, you can only claim your State Pension when you reach the State Pension Age.

When can I retire if I was born in 1956?

If you were born in 1956, you can retire at any time, but you must be over 66 to qualify for the State Pension.

How long after my 66th birthday will I get my State Pension?

Once you’ve initiated your State Pension claim, you can expect the initial payment to arrive within five weeks, followed by regular payments every four weeks thereafter.