The basic state pension is currently available to most UK individuals when they reach state pension age. The basic state pension depends on the number of years an individual has paid National Insurance or got National Insurance credits, eg while unemployed or claiming certain benefits. In order to receive the full basic state pension, an individual needs 30 years’ worth of National Insurance contributions or credits. See further guidance with regard to National Insurance contributions and the state pension.
Don’t forget that the state pension top up is available until April 2017. It is for individuals who have already reached state pension age, or are reaching state pension age before 6 April 2016. They can secure an index-linked top up, increasing the weekly state pension for life by paying a lump-sum contribution.
Personal pension schemes provide a retirement fund for individuals, whether they are employees or self-employed. They are offered by financial organisations such as banks or insurance companies.
Occupational pension schemes are provided by employers to their employees. Where a pension scheme is registered with HMRC, there are tax advantages for the individual and the employer, where the employer also contributes to the scheme. Starting from 1 October 2012, a new requirement was introduced upon employers to provide eligible employees with automatic enrolment with a workplace pension plan. Further guidance on auto enrolment is available.