The starting amount in one paragraph: if you have NI contributions both before and after 6 April 2016, HMRC calculates what you'd have received under the old system at April 2016, and what you'd have received under the new system at April 2016. Your starting amount is the higher of the two. From there, post-2016 NI years add to your pension up to the full new State Pension cap — but if your starting amount was already above the full rate, the excess becomes a "protected payment" that's also paid forever (just not uprated by the triple lock).
Why a starting amount exists
The April 2016 reform created a new State Pension at a higher headline weekly rate than the old basic State Pension, but it removed two important pre-2016 features:
- The earnings-related additional State Pension (SERPS/S2P) that high earners built up before 2002 and 2002-2016
- Various derived rights (Cat B pensions through a spouse)
Many higher earners and women with Cat B rights would have been worse off under a cold switchover. The starting-amount calculation prevents that — you can't be put into a worse position by the reform.
The two parallel calculations
HMRC performs both calculations at 6 April 2016 and compares:
| Old system calculation | New system calculation |
|---|---|
| Basic State Pension at 30/30 years = £156.20/week in 2026/27 figures (old basic uprated) | Full new State Pension at 35/35 years = £241.30/week in 2026/27 figures |
| + Additional State Pension (SERPS + S2P) built up before April 2016 | Pro-rata starting amount for any qualifying years pre-2016 |
| + Cat B / derived rights if married | (No derived rights under new system) |
| − Contracted-out deduction (if applicable) | − Contracted-out deduction (different formula) |
| = Old system value at April 2016 | = New system value at April 2016 |
Higher of the two becomes your starting amount.
What happens to post-2016 NI years
Each post-2016 qualifying year is worth 1/35 of the full new State Pension — about £6.58/week (£342/year) in 2026/27 figures.
- If your starting amount was below the full new rate (£241.30/week): each post-2016 qualifying year adds £6.58/week up to the £241.30 cap. After that, additional years don't add anything.
- If your starting amount was at or above the full new rate: post-2016 NI years don't add to your pension — you've already exceeded the cap. The excess above £241.30 becomes a "protected payment".
The "protected payment" mechanism
If your starting amount exceeded the full new State Pension (i.e., the old system would have been more generous), the excess is preserved forever as a "protected payment".
Critically: the protected payment is uprated by CPI inflation only, not the triple lock. The base £241.30 component goes up by the highest of CPI, earnings, or 2.5%. The protected payment goes up only by CPI.
Over time, this means the protected payment erodes in real value relative to the base. But it never disappears — you still receive it for life.
Worked example 1: Higher earner, lots of SERPS
Mr A reached SPA in 2020. NI history: 38 years of contributions, all earnings-related, well above the SERPS earnings cap. He contributed to SERPS 1985-2002 and S2P 2002-2016. Never contracted out.
- Old system at April 2016: basic £119.30 + SERPS/S2P £85 (approx) = £204.30/week
- New system at April 2016: 30 qualifying years × 1/35 = £141 in 2016 figures (£155.65 × 30/35)
- Starting amount: higher of the two = £204.30/week (April 2016 figures)
- 2016-2020 (4 additional years): already over full new rate, so no further accrual
- Uprated to 2026/27: base £241.30 (triple-lock) + protected payment of ~£50 (CPI-only)
- Mr A receives roughly £280/week in 2026/27
Worked example 2: Lower earner, mostly basic-rate work
Ms B reached SPA in 2024. NI history: 30 years pre-2016, 8 years post-2016. Earned at SERPS-cap minimum, with some contracted-out years (1990-2000).
- Old system at April 2016: basic £119.30 + small SERPS £15 − contracted-out deduction £20 = ~£114/week
- New system at April 2016: 30/35 of full new pension − contracted-out deduction = ~£117/week
- Starting amount: £117 (April 2016)
- 2016-2024: 8 additional qualifying years × £4.45 (2016 figure of 1/35) = £35.60/week added
- Total pre-uprating: £152.60/week in 2016 figures
- Uprated to 2026/27 by triple lock: roughly £218/week
Ms B receives slightly less than the full new State Pension because her contracted-out years and basic-rate earnings limited both pathways.
Why this matters: checking your forecast
Your State Pension forecast shows your current entitlement and the maximum you could reach if you make any further qualifying years. For people with complex pre-2016 history, the forecast may show:
- A figure higher than £241.30/week (indicating you have a protected payment)
- A figure lower than £241.30 with a maximum you could still reach by buying more NI years
- An "achieved maximum" status — meaning further years add nothing
The "buy more years" tool tells you whether voluntary Class 3 contributions would increase your pension — for some borrowers it's worthless (already at the max), for others it's the best £956.80 they'll ever spend.
Common starting-amount misunderstandings
- "I have 35 years so I get the full pension." Not necessarily — if those years included contracted-out periods, your starting amount may be lower.
- "I should buy more NI years to reach the full pension." Only if your forecast says you can. Some people are already over the cap and can't add more.
- "The protected payment will be eroded away." Not in nominal terms — only in real-value terms relative to the triple-lock-uprated base.
- "My SERPS/S2P is gone under the new system." No — it's preserved through the starting-amount calculation. You may not see it as a separate line, but it's reflected in your starting amount.
- "Contracting out doesn't matter anymore." It still affects your starting amount — reducing both the old and new system calculations.
Sources
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