State Pension payments are intended to help those who have reached State Pension age. These payments are only available to individuals who have made the necessary National Insurance contributions throughout their working life. Express.co.uk has compiled a guide to explain how State Pension works and if it will rise in 2021.
What is State Pension?
State Pension is a regular income payment given by the UK Government once you reach State Pension age.
The weekly payment is made to individuals based on the amount of National Insurance contributions one has made during their life.
There are two types of State Pension: the basic State Pension and the new State Pension.
The basic State Pension is paid to men born before April 6, 1951, and women born before April 6, 1953.
The new State Pension is paid to men born on or after April 6, 1951, and women born on or after April 6, 1953.
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The following payments will come into effect from April 5, 2021:
- Basic State Pension weekly payments: From £134.25 to £137.65.
- Basic State Pension annual payments: From £6,981 to £7,157.80.
- New State Pension weekly payments: From £175.20 to £179.60.
- New State Pension annual payments: From £9,110.40 to £9,339.20.
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How to check your State Pension
The Government has created a State Pension forecast tool which enables users to work out how much State Pension they could get.
The calculator tool also provides insight into when you can claim State Pension and how to increase it or if you can do so.
You can check your State Pension forecast here.