Some people may be at risk of not receiving the full New State Pension due to gaps in their records. The Department for Work and Pensions (DWP) data reveals that the State Pension is currently supporting 13 million elderly people.
This benefit is available to those who have reached the eligible retirement age set by the UK Government, which is 66 for both men and women, and have made a minimum of 10 years’ worth of National Insurance (NI) contributions. However, many nearing retirement may not be aware that to receive the full New State Pension payment of £230.25 per week, they will need roughly 35 years’ worth of NI contributions.
This figure is simply an average as some individuals may have been ‘contracted out’ and will require more NI contributions to qualify for the full amount. Workplace and private pensions will supplement the State Pension in retirement, but many might be relying on the contributory benefit as their sole income during retirement, so it’s important to understand how many years you will need to contribute to NI to receive the maximum payout, reports the Daily Record.
How to get any New State Pension payment
To qualify for any State Pension, you’ll need at least 10 qualifying years on your National Insurance record, but these don’t have to be consecutive.
This means that for at least 10 years, one or more of the following applied to you:
- You were working and paid National Insurance contributions
- You were getting National Insurance credits for example if you were unemployed, ill, a parent or a carer
- You were paying voluntary National Insurance contributions
Even if you’ve lived or worked overseas, you might still be eligible for some New State Pension.
You may also qualify if you’ve made contributions at the reduced rate for married women or widows – find out more about this on the GOV.UK website here.
Understanding full New State Pension payments
‘Full’ refers to the maximum amount of New State Pension a person can receive. To receive the full New State Pension, you’ll need approximately 35 qualifying years if you don’t have a National Insurance record before 6 April 2016 – this could be more if you were ‘contracted out’, find out more here.
For individuals who have contributed between 10 and 35 years, they are eligible for a portion of the new State Pension, but not the full amount unless they purchase additional NI years.
Qualifying years if you are working
When you’re employed, you pay National Insurance and earn a qualifying year if:
- You’re employed and earning over £242 a week from one employer
- You’re self-employed and paying NI contributions
You might not be paying National Insurance contributions because your earnings are less than £242 a week. However, you may still earn a qualifying year if you make between £123 and £242 a week from one employer.
Qualifying years if you are not working
You may receive National Insurance credits if you’re unable to work – for instance due to illness or disability, or if you’re a carer or unemployed. You can get National Insurance credits if you:
- Claim Child Benefit for a child under 12 (or under 16 before 2010)
- Get Jobseeker’s Allowance or Employment and Support Allowance
- Receive Carer’s Allowance
If you’re not working or receiving National Insurance credits, you might have the option to make voluntary National Insurance contributions if you’re not in one of these groups but wish to increase your State Pension amount. Find out more on the GOV.UK website here.
What happens if there are gaps in your National Insurance record?
Even with gaps in your National Insurance (NI) record, you can still receive the full New State Pension. A State Pension statement can provide information on how much State Pension you may be eligible for.
You can also request a National Insurance statement from HM Revenue and Customs (HMRC) to verify if there are any gaps in your record.
If your National Insurance record has gaps that could prevent you from receiving the full New State Pension, you might have the option to:.
- Get National Insurance credits
- Make voluntary National Insurance contributions
You can check your National Insurance record on the GOV.UK website here.
