You need to have worked and made National Insurance contributions for a set number of years to get the full New State Pension.
Older people do not automatically receive full New State Pension payments of £230.25 each week (Image: Getty)
Brits approaching retirement have been warned that they may not be entitled to the full New State Pension amount. You may not realise that you need to have contributed to National Insurance (NI) for a certain number of years to qualify.
The State Pension currently provides a steady financial income for 13 million elderly people nationwide. This payment is accessible to those who have reached the UK Government’s eligible retirement age, which is presently 66 for both men and women, and have made at least 10 years’ worth of NI contributions.
However, as highlighted by the Daily Record, many people nearing retirement may not realise that to receive the full New State Pension payment of £230.25 each week, they will need approximately 35 years’ worth of NI contributions.
This is merely an average figure as some individuals may have been ‘contracted out’ and will require more NI contributions to qualify for the full amount – further information about this can be found on GOV.UK.
Workplace and private pensions will supplement the State Pension in retirement, but many people may be depending on the contributory benefit as their sole income in retirement, so it’s vital to understand how many years you will need to make NI contributions to receive the maximum payout.
You need around 35 qualifying years to receive the full New State Pension (Image: Getty)
The State Pension age is scheduled to rise to 67 between 2026 and 2028, with a further planned increase to 68 set to occur in the mid-2040s.
If you’re concerned about the number of years you need to work – whether retirement is far off or just around the corner – our helpful guide below should clarify how National Insurance contributions influence the amount of State Pension you’ll receive.
How to qualify for any New State Pension payment
You’ll need at least 10 qualifying years on your National Insurance record to be eligible for any State Pension, but these don’t have to be 10 consecutive years.
- This means that for at least 10 years, one or more of the following applied to you:
- You were employed and made National Insurance contributions
- You received National Insurance credits, for instance if you were jobless, ill, a parent or a carer
- You made voluntary National Insurance contributions
- Even if you’ve lived or worked overseas, you might still be able to get some New State Pension
You may also qualify if you’ve made married women’s or widow’s reduced rate contributions – find out more about this on the GOV.UK website here.
How to qualify for full New State Pension payments
The first thing to understand is that ‘full’ refers to the maximum amount of New State Pension a person can receive.
You’ll need approximately 35 qualifying years to receive the full New State Pension 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 those who have contributed between 10 and 35 years, they are eligible for a portion of the new State Pension. However, they won’t receive the full amount unless they purchase additional NI years.
Qualifying years if you’re employed
When you’re working, 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 making NI contributions
If you’re earning less than £242 a week, you might not pay National Insurance contributions. However, you may still earn a qualifying year if your weekly earnings from one employer range between £123 and £242 – find out more here.
Qualifying years if you’re not employed
If you’re unable to work due to illness or disability, or if you’re a carer or unemployed, you may be entitled to National Insurance credits.
You can receive National Insurance credits if you:
- Claim Child Benefit for a child under 12 (or under 16 before 2010)
- Receive Jobseeker’s Allowance or Employment and Support Allowance
- Are in receipt of Carer’s Allowance
- If you’re not employed or receiving National Insurance credits
If you’re not part of these groups but wish to increase your State Pension amount, you might be able to make voluntary National Insurance contributions. 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 record, you can still receive the full New State Pension. A State Pension statement will inform you of the amount you may receive.
You can then request a National Insurance statement from HM Revenue and Customs (HMRC) to check for any gaps in your record.
If there are gaps in your National Insurance record that could hinder you from receiving the full New State Pension, you might be able to:
- Obtain National Insurance credits
- Make voluntary National Insurance contributions
You can check your National Insurance record on GOV.UK here.
