What is the state pension?
The state pension is a regular payment from the government from state pension age, based on your National Insurance record. The new state pension generally requires ten qualifying years to receive anything and around 35 for the full amount.
It is taxable, but paid without tax deducted, so it uses up personal allowance and can cause a tax bill on other income that people do not anticipate.
Gaps in the National Insurance record — from time abroad, low earnings, or self-employment — reduce it. Voluntary contributions can fill them, and the return is often exceptional relative to the cost, but there are time limits on how far back you can go.
Deferring increases it. State pension age is rising, so the date it becomes payable should be checked rather than assumed. A state pension forecast on GOV.UK is free, takes minutes, and is the natural starting point for any retirement plan.