State Pension and Pension Credit rate - how much can you get?
There are different rates of State Pension. The rate you get depends on your circumstances. Your eligibility for Pension Credit also depends on your personal situation, including your weekly income.
Basic State Pension – what is the rate?
The following table is an overview of the maximum basic State Pension you can get.
|Circumstances||Basic State Pension weekly rate for 2014/2015|
|Single man or woman||£113.10|
|Married man or woman or civil partner (who qualify with their own National Insurance Contributions)||£113.10|
|Married man, woman or civil partner (using his wife's, her husband's or civil partner's National Insurance record)||£67.80|
How do I qualify for a basic State Pension?
Your basic State Pension is based on the number of qualifying years you paid National Insurance contributions.
To find out more about qualifying for the basic State Pension, see ‘Qualifying for basic State Pension’.
How is the basic State Pension rate increased each year?
The rate of basic State pension is increased from April each year by at least the level of growth in average earnings. The current Government's policy is that the basic State Pension will increase each year by the highest of:
- growth in average earnings
- prices increases
- 2.5 per cent
In tax year 2014/2015 the basic State Pension and additional State Pension rise in line with the Consumer Prices Index.
Additional State Pension – what is the rate?
The additional State Pension is sometimes also known as SERPS or the State Second Pension (S2P).
Not everyone receives an additional State Pension. The amount you get depends on your earnings.
How is the additional State Pension rate increased each year?
Additional parts of the State Pension rise in line with the increase in prices. These include:
- the State Second Pension (S2P)
- the State Earnings-Related Pension Scheme (SERPS)
- Graduated Retirement Benefit
- Extra State Pension received for putting off (deferring) your State Pension claim (also called ‘increments’)
Until you reach State Pension age, the amount of State Second Pension or SERPS you have built up will usually be increased in line with the growth in average earnings. This is also known as ‘revaluation’.
Over 80 Pension – what is the rate?
The Over 80 Pension is a state pension that is available if you are aged over 80 and have little or no State Pension.
The rate is £67.80 weekly in the tax year 2014-2015 if you don’t get a basic State Pension. If you’re on a reduced State Pension, the Over 80 Pension will top up your State Pension to £67.80 a week.
Pension Credit – what is the rate?
If you are a pensioner in the tax year 2014/2015, Pension Credit could top up your weekly income to a guaranteed minimum of:
- £148.35 if you are single
- £226.50 if you have a spouse or partner
If you are aged over 65 you may also be able to get Savings Credit up to an additional:
- £16.80 weekly if you are single
- £20.70 weekly if you have a spouse or partner
The age when you can claim Pension Credit is rising in line with the increase in State Pension age for women and the further increase to 66 for men and women. Use the State Pension age calculator to find out your State Pension age and when you can apply for Pension Credit.
How is the Pension Credit rate increased each year?
The Guarantee Credit is usually increased in line with the growth in average UK earnings.
How price inflation is measured
The government uses the Consumer Price Index (CPI) as the measure of prices.
The basic State Pension increases by at least the equivalent of the Retail Price Index (RPI). This is to make sure its value is at least as generous as under previous rules.
Governments and economists use the CPI and the RPI to work out how much prices increase each year.
Personal and workplace pensions
To find out how much you could get in a personal pension, see ‘Options when you take your personal pension’.
To find out how much you could get in a workplace pension, see ‘How your workplace pension is paid'.