Can You Claim State Pension While Still Working?

Reviewed by Ed WilkinsonLast updated: May 8, 2026 2:39 pm

an older man still working. Blacksmithing work

Image credit: Murat Marangoz @Pexels

In this article:

Understanding State Pension Eligibility
Claiming State Pension While Working
Benefits of Working Beyond State Pension Age
Pension Planning and Advice
A Financial Adviser Can Help

Understanding the rules around the State Pension can be complex, especially when deciding whether to claim it while you are still employed. This article explains the regulations, trade‑offs and practical considerations of claiming your State Pension whilst continuing to work, to help you approach this important financial decision in an informed, non‑promotional way.

Understanding State Pension Eligibility

The State Pension is a benefit provided by the UK government to eligible individuals who have reached State Pension age. To start receiving it, you must meet specific criteria, primarily related to your National Insurance¹ (NI) record and age. Understanding these requirements helps ensure you receive what you are entitled to.

State Pension Age

The State Pension age² is rising for men and women. As of 2026, it is in transition: it remains 66 for some people and increases gradually to 67 between 6 April 2026 and 6 April 2028, depending on your date of birth. Under current law, it is scheduled to rise to 68 between 2044 and 2046, subject to future government review.

Checking Your State Pension Age

You can check your specific State Pension age using the online government checker. This is useful for planning as it reflects legislative changes and your date of birth.

National Insurance Contributions

To qualify for the full new State Pension, you generally need 35 qualifying years of NI contributions or credits. You can still receive a partial State Pension with at least 10 qualifying years. It is sensible to check your NI record to make sure contributions and credits have been recorded correctly over your working life, as errors can affect your entitlement.

Importance of Regularly Reviewing Your NI Record

Reviewing your NI record regularly helps you spot gaps or errors early. Where there are gaps, you may be able to make voluntary contributions to increase your entitlement, subject to time limits and eligibility. The government provides an online service where you can view your NI record and your State Pension forecast.

Ensuring your contributions and credits are up to date can prevent delays and underpayments.
Any gaps in contributions might be filled through voluntary contributions (time limits apply), potentially increasing the amount you receive when you claim.

Understanding these elements of eligibility helps you make informed decisions about retirement. If you need personalised guidance, consider speaking to a regulated financial adviser.

Claiming State Pension While Working

You can start receiving your State Pension while continuing to work full‑time or part‑time. The default retirement age was abolished in 2011, so you cannot usually be required to retire just because you have reached State Pension age (there are limited, job‑specific exceptions).

Income Tax Implications

Your earnings and State Pension are added together to determine the Income Tax³ you pay. The State Pension is paid without tax deducted, and HMRC usually adjusts your tax code on your salary or other pension so the right tax is collected. In England, Wales and Northern Ireland in 2026/27, the higher‑rate threshold is £50,270, and the additional rate applies above £125,140. The personal allowance⁴ (£12,570) is frozen and is tapered away once income exceeds £100,000. Combining your salary with your State Pension could therefore push more of your income into higher tax bands. Scottish Income Tax bands and rates are different.

Detailed Tax Planning

Projecting your total income and understanding the tax implications can help you decide when to claim. Using reputable calculators or speaking to a tax professional can clarify how claiming your State Pension while working affects your net income.

Options for Deferring State Pension

Deferring your State Pension can increase what you receive later. For the new State Pension⁵, your entitlement increases by 1% for every 9 weeks you defer (around 5.8% for each full year). The extra is added to your regular State Pension⁶ when you claim; there is no lump‑sum option under the new State Pension. You must defer for at least 9 weeks to receive any increase, and you may not build up extra if you receive certain benefits while deferring.

Calculating the Benefits of Deferral

Deferring for five years could increase your State Pension by roughly 29% based on current rules. The increase is simple rather than compounded, and the point at which you “break even” depends on how long you then receive your pension, so consider your health and life expectancy alongside your finances.

The extra amount earned by deferring is then uprated each year in payment by inflation (currently CPI), which can help preserve its value over time.
It is also worth considering your health, life expectancy and personal circumstances when deciding to defer, as these factors significantly influence whether deferral is beneficial for you.

Whether to claim while still employed depends on your income needs, tax position and future plans. Using available tools and, where appropriate, regulated advice can help you weigh the trade‑offs.

Benefits of Working Beyond State Pension Age

Choosing to work beyond State Pension age can offer several advantages:

Financial security: Continuing to earn can support your standard of living and reduce the need to draw on savings. From the pay period after you reach State Pension age, you no longer pay employee National Insurance (your employer still pays their contributions), which can increase your take‑home pay; you will, however, still pay Income Tax on your earnings and pension.
Health and social benefits: Many people find that work keeps them mentally and socially engaged and provides structure and purpose.
Increased future pension: As noted, deferring your State Pension while you continue to work can increase the amount you receive later (currently around 5.8% for each full year of deferral under the new State Pension, calculated on a simple basis).

Additional Economic Advantages

Working beyond State Pension age can also have broader economic benefits:

By extending their working life, individuals continue to pay taxes and contribute economically through their productivity, supporting public services.
Remaining active can be associated with improved well-being, which may reduce some age‑related costs at a personal and societal level.

Supporting Personal Development

Continuing to work can support lifelong learning and open up new opportunities, such as consultancy or mentoring roles that offer personal satisfaction and flexibility.

Utilising Skills and Experience

Older employees bring valuable experience that can benefit colleagues and organisations, helping to transfer skills and preserve corporate knowledge.

Ultimately, working beyond State Pension age is both a financial and lifestyle choice. You are not normally required to retire at a particular age, and the right approach will depend on your circumstances. This article provides general information; if you need advice tailored to you, consider speaking to a regulated financial adviser.

Pension Planning and Advice

Deciding when to claim your State Pension while still working should reflect your financial situation, health and preferences. It is important to assess your income needs, expected income streams and tax position, and consider any effect on future entitlements and state benefits.

Comprehensive Financial Review

A thorough review should cover your assets, liabilities, and ongoing expenses, as well as how State Pension income interacts with other income.

Projected Income Analysis

Assessing future income sources, including workplace or personal pensions, investments and savings alongside the State Pension, can provide a clearer picture. Factor in potential rises in living costs and healthcare needs over time.

Role of Retirement Planning Tools

Using reputable retirement planning tools can illustrate how different claim dates and retirement ages might affect your finances, allowing you to test assumptions about investment returns, inflation and tax rules.

Benefits of Professional Financial Advice

Consulting a financial adviser authorised and regulated by the Financial Conduct Authority (FCA) can help ensure any recommendations are up to date and tailored to your situation. An adviser can integrate your State Pension decision with wider retirement planning, including ISAs, investments and tax planning.

Advisers can help you decide when to start drawing your pension(s) in line with your work plans and goals.
They can suggest ways to use pension drawdown or lump‑sum payments effectively, if appropriate.
Guidance on tax‑efficient withdrawal strategies may reduce the tax you pay over retirement, where suitable.

Ultimately, the timing of your State Pension claim should align with a broader retirement plan designed to support long‑term financial security and personal goals. Combining digital tools with regulated advice can lead to more informed decisions.

A Financial Adviser Can Help

A financial adviser can provide guidance on whether and when to claim or defer your State Pension while you work, explain the tax implications, and help you integrate State Pension income with other retirement savings. Regulated advice can be helpful when navigating complex rules.

FinancialAdvisers.co.uk can connect you with a financial adviser in your area who is authorised and regulated by the FCA. Always check the firm and individual on the FCA Register before proceeding.

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