State pension

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

State pension

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
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Introduction

The state pension is paid from the National Insurance Fund, with contributions by current taxpayers used to fund the current state pensions. There is no investment to meet the future pension needs of current taxpayers.

Reaching state pension age prior to 6 April 2016

Where the individual reached state pension age before 6 April 2016, there are three types of state pension payable in the UK:

  1. category A ― the basic state pension and state second pension (S2P, formerly SERPS), based on the individual’s national insurance contribution (NIC) record

  2. category B ― the basic state pension and S2P, based on the taxpayer’s spouse or civil partner’s NIC record (can be claimed if the spouse / civil partner’s record is better than their own)

  3. category D ― the supplement payable to those pensioners over 80 years old irrespective of contribution record

Categories A and B are mutually exclusive; an individual cannot claim a state pension under both. However, taxpayers in receipt of a category A or B pension are entitled to a category D supplement

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  • 22 Jul 2025 09:40

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