The State Pension is based on an individual’s National Insurance record and is payable to those who meet the eligibility criteria. Since its introduction in 2016, the new State Pension is designed to provide a consistent foundation level of income in later life.

State Pension entitlement has been based on an individual's National Insurance record since 1948. The Government acknowledges the concerns raised in the Report but has no plans to change the current scheme or the law to implement recommendation 27.

The latest year to date performance for 2025-2026 shows improvement of claims processed within the current target of 50 working days. Our most recent Pension Credit applications and awards: November 2025 - GOV.UK statistics show outstanding Pension Credit claims have reduced to 12,940 outstanding at the end of week commencing 17 November. This is a decrease of 84% or 68,845 fewer outstanding claims compared to end of week commencing 18 November 2024.

Ad-hoc statistics on households potentially eligible for Pension Credit were published by DWP for the financial year 2023 to 2024 and are available at: Households potentially eligible for Pension Credit, 2023 to 2024 - GOV.UK. Table 4a provides a breakdown of eligible households in receipt of Pension Credit, potentially eligible households and Pension Credit receipt rate by parliamentary constituency.

These are estimates based on administrative data and are not derived from the official statistics (available here: Income-related benefits: estimates of take-up: financial year ending 2024 - GOV.UK). The official statistics should be used for estimates of Pension Credit take-up at the Great Britian level, with the ad-hoc statistics providing breakdowns at lower levels of geographical areas.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.

The Office for Budget Responsibility (OBR) set out in their November 2025 Economic and Fiscal Outlook that they do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.

The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.  Employers must also meet their automatic enrolment obligations.

A Tax Information and Impact Note (TIIN)(opens in a new tab) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice. As set out in the TIIN, the average additional NICs liability for affected individuals is estimated to be £84 in 2029/30.

Individuals earning below £30,000 making pension contributions through salary sacrifice are overwhelmingly protected by a £2,000 cap, with few (c. 5%) making salary sacrifice contributions above this threshold.

The Department for Work and Pensions has published analysis on the number and proportion of working age individuals who are undersaving for retirement. This analysis is published here: Analysis of Future Pension Incomes 2025 - GOV.UK

This analysis looks at Target Replacement Rates, the percentage of pre-retirement earnings an individual would need to replace to meet an adequate income in retirement, and also at expenditure-based measures of income adequacy in retirement. This analysis includes estimates of longevity as part of assessing the level of savings needed to achieve the various levels of income.

No specific assessment has been made of the age of inheritance.

The Government has also revived the Pensions Commission, with a broad and comprehensive remit to consider the long-term future of our pension system, to ensure it delivers financial security in retirement through a framework that is strong, fair and sustainable. This includes exploring the long-term questions of adequacy and how to improve retirement outcomes for future generations of retirees.

The proportion of the self-employed who are saving into a pension has fallen significantly from almost 50% in the late 1990s to less than 20% at present. While self-employed workers are not eligible for Automatic Enrolment, the National Employment Savings Trust (Nest) must accept individuals who are self-employed, meeting certain conditions, who wish to join a pension scheme.

The Department is currently working with Nest Insight and partners to test potential solutions. The Pensions Commission will also explore steps to improve pension outcomes, especially for those at the greatest risk of undersaving, such as self-employed workers.

This government is committed to enabling tomorrow’s pensioners to have security in retirement. The Pensions Commission has been revived to consider what is required in the long term to deliver a pensions framework that is stronger, fairer and more sustainable. Amongst other things, the Commission will look at how to improve retirement outcomes, especially for those on the lowest incomes and at the greatest risk of poverty or under-saving.

The Government is absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement.

State Pension payments are paid from the National Insurance Fund (NIF). The Government reviews forecasts of the NIF balance every five years to inform future decisions. The Government Actuary’s Department is currently undertaking its quinquennial review.

The Winter Fuel Payment will be paid to those with total incomes below or equal to £35,000. This means those on lower and middle incomes will still receive the help they need and ensures fairness for both pensioners and taxpayers.

The standard definition of total taxable income applies. This includes any savings interest outside an ISA, even if the savings are under the Personal Savings Allowance

Other benefits have their own means tests, which take differing personal and financial circumstances into account to ensure support is appropriately targeted.

Anyone convicted of a criminal offence and serving a custodial sentence in the UK is not eligible to receive State Pension payments during their imprisonment.

People not in prison but convicted of illegal working, would not be making National Insurance contributions during any period of illegal working, which would be required to build entitlement for the State Pension.

The Government has relaunched the Pensions Commission to consider the outcomes and risks for future cohorts of pensioners, taking into consideration the role housing plays amongst other factors. The Commission will report in 2027.

The Government linked eligibility for Winter Fuel Payments to receipt of Pension Credit or certain other benefits for winter 2024/25 to help address immediate fiscal pressures, and to focus them on those with the lowest incomes.

From this winter (2025/26), the vast majority of pensioners in England and Wales – over three quarters – will now benefit from Winter Fuel Payments. Payments will be made to all pensioners in England and Wales. As in previous years, these will be payments of between £100 and £300, depending on age and whether the pensioner is living alone or in a household with another pensioner. Pensioners with a total income over £35,000 (excluding disability benefits), and who are not in receipt of Pension Credit or other relevant means-tested benefit, will have the Winter Fuel Payment recovered through the tax system.

The rates of Pension Credit are reviewed annually as part of the Secretary of State’s statutory review of State pension and benefit rates. Following the last review in Autumn 2024, the Standard Minimum Guarantee in Pension Credit increased by 4.1% in line with average earnings. This raised it to £227.10 a week for a single pensioner and £346.60 a week for a couple from 7 April 2025. The next review will be undertaken following confirmation in October by the Office of National Statistics of the earnings and prices indices which are used to inform the review.

The Department does not collect data on individuals’ net worth.

The Department does not collect data on individuals’ net worth.

The Department does not collect data on individuals’ net worth.

This is an important question, and one where we have seen some good news on the back of cross-party working over the last 15 years. Automatic enrolment has succeeded in transforming participation rates in workplace pensions, particularly for young people. Participation among all eligible 22 to 29-year-olds has increased from 35% to 86%, but there is much more to do. That is why the second phase of our pension review will look at further steps to improve pension outcomes for everyone, including those lucky enough to be young.

The estimated total number of people in receipt of State Pension in the 2025-26 to 2028-29 financial years is available in the following table. This is from the latest Benefit Expenditure and Caseload tables published following Spring Statement 2025. This covers State Pension recipients in Great Britain, Northern Ireland, and outside the UK. Figures are rounded to nearest one thousand and represent a mid-financial year average. Source: Benefit expenditure and caseload tables 2025 - GOV.UK

As forecasts of private pension receipt are not produced, this response has reference to the State Pension only.

Automatic enrolment has succeeded in transforming pension saving with over 11 million employees having been automatically enrolled into a workplace pension since 2012. These statistics are available from The Pensions Regulator and are updated on a monthly basis. However, this is not split by age

Automatic enrolment declaration of compliance report.

DWP publish statistics annually on pension participation by age. The latest statistics show 86% of 22-to-29-year-olds who are eligible for Automatic Enrolment are saving into a workplace pension as of 2023, up from 35% in 2012 (when AE was being rolled out). This is comparable to a participation rate of 88% for all eligible individuals aged (22 to 66). Further data on workplace pension participation and saving trends are available on GOV.UK.

Future pension income depends on many individuals factors across an individual’s life time, further analysis on future pensioner incomes by year of retirement are available on GOV.UK.