How much you receive in your State Pension depends on your National Insurance record. To get the full amount you need to have paid NI contributions for a certain amount of years.
What is the State Pension?
The State Pension is the UK’s pension arrangements, but how much you get depends on your age and contribution record.
Anyone can make a claim for a State Pension, as long as they have completed the minimum number of qualifying years of work.
The State Pension went through a change in 2016.
You can claim the new State Pension if you are:
• a man born on or after April 6, 1951
• a woman born on or after April 6, 1953
You can check your State Pension age on Gov.uk.
READ MORE- State pension: This is number of NI years you’ll need for payments
- Pension UK: These tax traps could affect your pension pot
If you have already reached your State Pension age, and did so before April 6, 2016, your State Pension is subject to the old rules instead.
Find the old rules here
To receive any State Pension at all, a person needs at least 10 years on their National Insurance record.
This doesn’t need to be 10 years in a row, it just means for 10 years minimum one of the following must have applied to you:
• you were working and paid National Insurance contributions
• you were getting National Insurance credits for example if you were unemployed, ill or a parent or carer
• you were paying voluntary National Insurance contributions
You get about £5 a week for every year you have paid National Insurance.
The longer you work, the more money you get per week on your State Pension to use when you reach State Pension age.
However, State Pensions do not have to be claimed straight away.
You can defer your pension and continue working.
If a State Pension is deferred for a certain amount of time, the eventual payments could be raised.
The amount could be higher if you have over a certain amount of Additional State Pension.
State pension: This is number of NI years you’ll need for payments [INFORMER]
Child benefit: How claims can protect state pensions [EXPLAINER]
Pension warning: Millions missing out on tax relief – changes needed [INFORMER]
What is the full new State Pension?
The full new State Pension is £175.20 per week, but not everyone is eligible to get that.
The full State Pension works out as just over £9,000 a year.
To get this, you need to have paid National Insurance for 35 years.
To find out how much State Pension you could get, you should contact the Department for Works and Pensions, or visit the Gov.uk website.
Ed Monk, associate director for Personal Investing, Fidelity International said: “To get the full State Pension, currently £175.20 a week, you’ll need 35 years of National Contributions.
“If you have less than this your pension is worked out pro-rata – so someone hitting their State Pension age now would divide £175.20 by 35, then times that by the number of years they’ve contributed.
“You can check how many years you’ve amassed online through the government service, here.”
In order to check your National Insurance record, you will need a Government Gateway ID.
He explained: “You’ll need something called a Government Gateway ID, which is a fiddle but is worth pursuing.
“There have been reports of people reaching retirement and finding they have gaps in their record which means they don’t get as much as they had assumed, and even of their contributions being missed from their record.
“Checking early means you can check for gaps and correct them if that’s necessary.
How many years NI do I need to get a basic State Pension?
For the old State Pension, you need to have 30 qualifying years on your National Insurance record.
The maximum amount payable for the basic pension is £134.25 a week.
You can claim the basic State Pension if you’re:
• a man born before 6 April 1951
• a woman born before 6 April 1953
If you were born later, you’ll need to claim the new State Pension instead.
You may have the option to top up your contributions to qualify for the maximum amount.
You may also qualify for the Additional State Pension on top of your basic State Pension. Find out more on the GOV.UK website.
Why has the State Pension increased?
This April, the State Pension increased by 3.9 percent from £168.60 to £175.20.
The basic State Pension rate also increased to £134.25 a week, which is an extra £260 a year.
Mr Monk said: “The increase to the State Pension this month reflects the annual rise in average wages from September last year – some 3.9 percent.
“Wages are one of the three components to the State Pension ‘Triple Lock’ which ensures the payment rises by the highest of inflation, wages or 2.5 percent.
“It’s always the reading from the September before the rise in the following April which is taken into account.”
Source: Read Full Article