Additional State Pension Calculator
Calculate your potential Additional State Pension (also known as State Second Pension or SERPS) based on your National Insurance contributions and employment history.
Your Additional State Pension Estimate
How Is Additional State Pension Calculated? A Complete Guide (2024)
The Additional State Pension (also known as State Second Pension or SERPS – State Earnings-Related Pension Scheme) is an extra amount you can get on top of your basic State Pension if you’re eligible. This guide explains exactly how it’s calculated, who qualifies, and how to maximize your entitlement.
1. What Is the Additional State Pension?
The Additional State Pension was introduced to provide extra retirement income based on your earnings and National Insurance contributions. It replaced the State Earnings-Related Pension Scheme (SERPS) in 2002 and was itself replaced by the new State Pension system in April 2016 for people reaching State Pension age after that date.
If you reached State Pension age before 6 April 2016, you might get:
- Basic State Pension (up to £156.20 per week in 2023-24)
- Additional State Pension (amount varies based on your contributions)
If you reached State Pension age on or after 6 April 2016, you’ll get the new State Pension instead, which combines both elements into a single payment (up to £203.85 per week in 2023-24).
2. Who Qualifies for Additional State Pension?
You may qualify if you:
- Reached State Pension age before 6 April 2016
- Were employed and paid National Insurance contributions (Class 1)
- Earned above the Lower Earnings Limit (£6,396 per year in 2023-24)
- Were not ‘contracted out’ of the Additional State Pension (though you might still get some)
You don’t qualify if you were:
- Self-employed (unless you paid Class 2 contributions that counted towards it)
- Not working or earning below the threshold
- Contracted out of the scheme through a workplace pension
3. How Additional State Pension Is Calculated
The calculation depends on which system you were under:
| Period | Scheme Name | Calculation Basis | Max Weekly Amount (2023-24) |
|---|---|---|---|
| 1978 to 2002 | SERPS (State Earnings-Related Pension Scheme) | Based on your best 20 years of earnings between the lower and upper earnings limits | £198.45 |
| 2002 to 2016 | State Second Pension | Flat-rate accrual (£1.80 per week per qualifying year for 2016-17) | £198.45 |
| 2016 onwards | New State Pension | Single-tier pension combining basic and additional elements | £203.85 |
SERPS (1978-2002) Calculation
For SERPS, your pension is calculated as:
- Take your average earnings between the Lower Earnings Limit (LEL) and Upper Earnings Limit (UEL) for your best 20 years
- Calculate 25% of this average (20% for years before 1988)
- Divide by the number of years you contributed to get your weekly amount
Example: If your average earnings between LEL and UEL were £10,000 over 20 years:
£10,000 × 25% = £2,500 per year
£2,500 ÷ 52 = £48.08 per week
State Second Pension (2002-2016) Calculation
From 2002, the calculation changed to a flat-rate system:
- £1.80 per week for each qualifying year (2016-17 rate)
- Lower earners (£15,000-£30,000) got more than this flat rate
- Higher earners got the flat rate amount
Example: If you had 10 qualifying years under this scheme:
10 × £1.80 = £18 per week
4. Contracting Out and Its Impact
Many people were ‘contracted out’ of the Additional State Pension through their workplace pension. This means:
- You and your employer paid lower National Insurance contributions
- Your workplace pension promised to provide benefits at least as good as the Additional State Pension
- You’ll get less (or no) Additional State Pension, but should have more in your workplace pension
If you were contracted out for some years but not others, your Additional State Pension will be reduced proportionally.
5. How to Check Your Additional State Pension
You can check your State Pension forecast (including any Additional State Pension) through:
- The GOV.UK Check Your State Pension service
- Your annual State Pension statement (sent automatically if you’re over 50)
- By phone: 0800 731 0175 (UK) or +44 191 218 3600 (abroad)
Your forecast will show:
- Your basic State Pension amount
- Any Additional State Pension you’ve built up
- Your State Pension age
- Whether you can increase your pension
6. Can You Increase Your Additional State Pension?
If you reached State Pension age before 6 April 2016, you might be able to increase your Additional State Pension by:
- Paying voluntary Class 3A National Insurance contributions (if you have gaps in your record)
- Deferring your State Pension – for every 5 weeks you defer, your pension increases by 1%
- Checking if you were incorrectly contracted out – some people were contracted out without realizing it
For those who reached State Pension age after 6 April 2016, you can’t increase your Additional State Pension as it’s been replaced by the new State Pension system.
7. Additional State Pension vs New State Pension
| Feature | Additional State Pension (Pre-2016) | New State Pension (Post-2016) |
|---|---|---|
| Calculation basis | Earnings-related (SERPS) or flat-rate (State Second Pension) | Single flat-rate amount (with some protection for those with existing rights) |
| Maximum weekly amount (2023-24) | £198.45 (Additional) + £156.20 (Basic) = £354.65 total | £203.85 |
| Contracting out | Possible – reduces Additional State Pension | Not possible – all NI contributions count towards new State Pension |
| Inheritance | Can sometimes be inherited by spouse/civil partner | Generally not inheritable (except in specific circumstances) |
| Voluntary contributions | Can top up with Class 3A contributions | Can top up with Class 3 contributions |
8. Tax on Additional State Pension
Your Additional State Pension is treated as taxable income. It’s paid gross (without tax deducted), and you’ll need to pay income tax on it if your total income exceeds your Personal Allowance (£12,570 in 2023-24).
Example: If you receive:
- £156.20 per week basic State Pension (£8,122 per year)
- £100 per week Additional State Pension (£5,200 per year)
- £2,000 per year from other savings interest
Total income = £15,322
Taxable income = £15,322 – £12,570 (Personal Allowance) = £2,752
Tax due = £2,752 × 20% = £550.40
9. Common Questions About Additional State Pension
Can I get Additional State Pension if I was self-employed?
Generally no, unless you paid Class 2 National Insurance contributions that counted towards it (which was rare). Self-employed people mainly built up entitlement to the basic State Pension.
What happens to my Additional State Pension when I die?
Your spouse or civil partner might be able to inherit some or all of your Additional State Pension, depending on when you reached State Pension age and their own circumstances. They should contact the Pension Service to check.
Why is my Additional State Pension less than I expected?
Common reasons include:
- Being contracted out for some years
- Having periods of low earnings or unemployment
- Not having enough qualifying years
- Errors in your National Insurance record (you can check this on GOV.UK)
Can I still build up Additional State Pension?
No. The Additional State Pension was frozen on 6 April 2016 when the new State Pension was introduced. If you reached State Pension age after that date, you’ll get the new State Pension instead.
10. Expert Tips to Maximize Your State Pension
- Check your National Insurance record – You need 35 qualifying years for the full new State Pension. You can check your record and fill gaps by paying voluntary contributions.
- Consider deferring – If you don’t need your State Pension immediately, deferring can increase your weekly amount by 1% for every 5 weeks you defer (5.8% per year).
- Review old pension statements – If you have workplace pensions from before 2016, check if you were contracted out as this affects your Additional State Pension.
- Claim missing credits – You might be able to get National Insurance credits for periods when you were unemployed, sick, or caring for someone.
- Check for errors – The DWP makes mistakes. If your forecast seems wrong, challenge it with evidence like P60s or pension statements.
11. Where to Get Help and Advice
If you need personalized advice about your State Pension:
- Pension Service – Official government helpline
- Pensions Advisory Service – Free independent guidance
- Citizens Advice – Practical help with pension issues
- Financial advisor – For complex situations (find one at Unbiased)
12. Future of State Pensions
The State Pension system continues to evolve. Key changes to be aware of:
- State Pension age increases – It’s currently 66 and will rise to 67 by 2028, with further increases planned.
- Triple lock guarantee – The State Pension increases each year by the highest of inflation, average earnings growth, or 2.5%. This has been temporarily adjusted during high inflation periods.
- Possible means-testing – There’s ongoing debate about whether the State Pension should be means-tested in future.
- Auto-enrolment changes – Workplace pension contributions are increasing, which may affect future State Pension calculations.
Stay informed by checking the Department for Work and Pensions website regularly for updates.
13. Case Studies: Additional State Pension in Practice
Case Study 1: Full Career with No Contracting Out
Situation: Margaret, born in 1950, worked full-time from 1970 to 2010 (40 years) earning £30,000-£50,000 per year. She was never contracted out.
Result: Margaret built up the maximum Additional State Pension of £198.45 per week (2023-24 rate) on top of her basic State Pension.
Case Study 2: Part-Time Work with Some Contracting Out
Situation: David, born in 1955, worked part-time from 1980 to 2015 (35 years) earning £10,000-£20,000. He was contracted out for 10 years through his workplace pension.
Result: David’s Additional State Pension was reduced due to contracting out and lower earnings. He received about £50 per week Additional State Pension.
Case Study 3: Self-Employed with Gaps
Situation: Sarah, born in 1960, was self-employed from 1985 to 2015 with some years of low earnings. She reached State Pension age in 2025.
Result: Sarah didn’t qualify for Additional State Pension as self-employed people mainly built up basic State Pension. Under the new system, her entitlement is based on her National Insurance record.
14. Glossary of Key Terms
- Basic State Pension: The foundation of the UK state pension system, based on National Insurance contributions.
- Additional State Pension: Extra amount on top of the basic State Pension, based on earnings.
- SERPS: State Earnings-Related Pension Scheme (1978-2002).
- State Second Pension: Replaced SERPS in 2002, more generous for lower earners.
- Contracting Out: Opting out of Additional State Pension in exchange for lower NI contributions and workplace pension benefits.
- Qualifying Year: A tax year where you paid enough National Insurance to count towards your State Pension.
- Lower Earnings Limit (LEL): Minimum earnings needed to qualify for certain benefits (£6,396 in 2023-24).
- Upper Earnings Limit (UEL): Maximum earnings on which NI contributions are paid at the main rate (£50,270 in 2023-24).
- New State Pension: Single-tier pension introduced in 2016, combining basic and additional elements.
- Pension Credit: Means-tested benefit to top up retirement income.
15. References and Further Reading
For official information about how Additional State Pension is calculated:
- GOV.UK: State Pension – Official government information
- GOV.UK: Additional State Pension – Detailed guide to Additional State Pension
- GOV.UK: State Pension Leaflet – Official leaflet explaining the State Pension
- Institute for Fiscal Studies: State Pension Age – Independent analysis of State Pension changes