The number of years you must work to receive full state pension payments
The Department for Work and Pensions (DWP) has published new figures which show that around 12.7 million older people across the UK currently receive a regular income from the State Pension. This benefit is available to people who have reached the pensionable age of 66, are set by the UK government, and have made at least 10 years’ worth of National Insurance (NI) contributions.
However, many people nearing retirement may not realize that they need almost 35 years’ worth of NI contributions to receive the full payment of the new state pension of £221.20 a week. This figure is an average as some individuals may be ‘contracted’ and will need more NI contributions to qualify for the full amount – more information can be found on GOV. United Kingdom
While workplace and private pensions can supplement the state pension in retirement, many people may only depend on this contribution benefit as their retirement income. Therefore, it is important to know how many years of NI assistance is required to secure the maximum payment.
The Daily Record reports that the state pension age will rise to 67 between 2026 and 2028, with a further planned increase to 68 in the mid-2040s. If you’re worried about the years you’ll need to work for your pension, whether retirement is far away or just around the corner, our helpful guide below should explain how National Insurance helps with the State Pension. Affects the amount you will receive.
Understanding the new state pension payments
To qualify for any state pension, you will need at least 10 National Insurance records, but these do not have to be consecutive. This means that for at least 10 years, one or more of the following applies to you:
- You are employed and pay National Insurance contributions.
- You have received National Insurance Credit – for example, if you are unemployed, sick, a parent or carer.
- You have made voluntary National Insurance contributions.
Even if you have lived or worked abroad, you may still be eligible for the new state pension. You may also be eligible if you have been paying Married Women’s or Widowed Reduced Rate Support – you can find out more about this here on the GOV.UK website.
Understanding the whole new state pension payments
Firstly, it is important to note that ‘full’ refers to the maximum amount of the new state pension that a person can receive. If you did not have a National Insurance record before 6 April 2016 you will need almost 35 qualifying years to get the full new State Pension.
It can be more if you are ‘contracted’. You can find more information here.
Those who have contributed between 10 and 35 years are eligible for part of the new state pension. Note, however, that this will not be the full amount unless they take additional NI years.
Eligibility years if you are employed
When you work, you pay National Insurance and get a qualifying year if:
- You are employed and earn £242 a week from an employer.
- You are self-employed and pay NI contributions.
If you earn less than £242 a week, you may not pay National Insurance contributions. However, you may still earn a qualifying year if you earn between £123 and £242 a week from an employer – find out more here.
Eligibility years if you are not working
You may get National Insurance Credit if you are unable to work – for example because of illness or disability, or if you are a carer or unemployed.
You can get National Insurance Credit if you:
- Claim child benefit for under 12s (or under 16 before 2010).
- Get Jobseeker’s Allowance or Work and Support Allowance.
- Get a maintenance allowance.
If you are not working or receiving National Insurance Credit
You may be able to make Voluntary National Insurance contributions if you are not in one of these groups but want to increase your State Pension. Find out more on the GOV.UK website here.
What if there are gaps in your National Insurance record?
Even with gaps in your National Insurance (NI) record, you are still eligible for a full new state pension. A state pension statement can give information on how much state pension you can get.
You can also request a National Insurance Statement from HM Revenue and Customs (HMRC) to confirm any gaps in your record. If there are gaps in your National Insurance record that prevent you from receiving a new state pension, you may have the option of:
- Get National Insurance Credit.
- Make voluntary National Insurance contributions.
You can check your National Insurance record on GOV. UK website here. It is also important to check your state pension age to find out when you can retire and start claiming your state pension. This can be done using a free online tool available here on the GOV.UK website.
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