The Basic State Pension is paid for by National Insurance Contributions (NICs) and the taxes of those in work. The amount you receive will depend on how many 'qualifying years' you build up before state pension age.
A qualifying year is any year with a National Insurance contribution record for each week of that year. Men need 44 qualifying years to get a full Basic State Pension. Women who reach 60 before 2010 need 39 qualifying years, but the State Pension age for women will begin to change from 2010 and by 2020 the number of qualifying years women need will be in line with that for men.
If you haven't got a full contribution record you can still receive a smaller Basic State Pension, based on the number of qualifying years you have. You'll normally need a minimum of 10 or 11 years to qualify. (More information is available at The Pension Service: www.thepensionservice.gov.uk) Note: This link is for general information purposes only. Standard Life accepts no responsibility for information contained or for the site not being available at all times.
From April 2008, the full Basic State Pension for a single person is £90.70 a week, and £145.05 for a pensioner couple.
Many people opt to supplement their state entitlement by saving into another pension. At the moment people receive their Basic State Pension on top of any other pension they have.
S2P is an additional 'top up' state pension paid for by NICs and linked to earnings. You can leave or 'contract-out' of S2P and direct some of your NICs into a Personal or Occupational Pension Scheme instead. If you're thinking of contracting–out, make sure you take some expert advice first.
