The State Pension is a regular payment from the government that you can claim when you reach State Pension age. You must have at least 10 years of National Insurance contributions to get any State Pension payment. The maximum full State Pension you can currently get is £179.60 per week (in 2022/23). To get the full amount, you’ll need at least 35 years of National Insurance contributions.
What are the National Insurance contribution requirements?
To qualify for the full State Pension, you need to have paid or been credited with National Insurance contributions for at least 35 years. National Insurance contributions are usually taken from your salary through PAYE if you are an employee. If you are self-employed, you pay National Insurance contributions through Self Assessment.
You build up National Insurance contributions in the following ways:
- Working and earning over £184 per week from one employer
- Being self-employed and paying Class 2 and Class 4 National Insurance
- Getting National Insurance credits – e.g. for unemployment, sickness or as a parent or carer
- Paying voluntary National Insurance contributions
So as long as you have at least 35 years of contributions through any of these ways, you will qualify for the full State Pension amount.
What if I have gaps in my National Insurance record?
It’s common to have some gaps in your National Insurance record. For example, if you took time off work to raise children or were unemployed for a period. If you have gaps of less than 5 years, this shouldn’t affect your State Pension entitlement. You just need a total of 35 qualifying years to get the full State Pension.
However, if you have gaps of more than 5 years, you may not meet the 35 year minimum requirement. In that case, you have two options to top up your State Pension:
- Make voluntary National Insurance contributions – You can pay voluntary Class 3 NI contributions for any years you were not working. This will help fill gaps in your record. You can make voluntary contributions for the last 6 years.
- Receive National Insurance credits – If you were unemployed, sick or a parent/carer for over 5 years, you may be able to get National Insurance credits to fill the gaps. This depends on your personal circumstances during the gaps.
It’s a good idea to check your National Insurance record regularly and make voluntary contributions or apply for credits if you have any large gaps. This will help boost your State Pension entitlement.
Can I check how many qualifying years I have?
Yes, you can check your National Insurance record and qualifying years for the State Pension in the following ways:
- Online – Use the Check your State Pension service on the government website.
- By phone – Call the Future Pension Centre on 0800 731 0175 and ask for a State Pension statement.
- By post – Fill in form BR19 and send it to the Pension Service to request a statement.
This will show you how many years of National Insurance contributions you have to date. It will also forecast your expected State Pension amount based on your current record.
Checking your record regularly means you can take steps to fill any gaps early on, so you can qualify for the maximum State Pension.
What years do I need National Insurance contributions for?
To get the full State Pension, you need at least 35 qualifying years on your National Insurance record. The specific tax years that count towards your State Pension are:
- Tax years 1978/79 to 1996/97 – You need contributions or credits for at least 7 years in this period.
- Tax years 1997/98 to 2016/17 – You need contributions or credits for at least 30 years in this period.
Any National Insurance contributions you have from before 1978/79 will not count towards your State Pension. The system changed in April 2016 so contributions after 2016/17 will also not count.
Focus on making sure you have full contributions from 1978/79 up to 2016/17 to get the maximum entitlement.
Does being self-employed affect my State Pension?
If you are self-employed, you pay different National Insurance contributions to employees. However, self-employed National Insurance still counts towards your State Pension entitlement.
As a self-employed person, you need to pay:
- Class 2 NI – A fixed amount paid on profits above the Small Profits Threshold (currently £6,725).
- Class 4 NI – A percentage paid on profits between £9,880 and £50,270.
These contributions go on your National Insurance record in the same way as employee contributions. As long as you pay Class 2 and 4 National Insurance for 35 years, you will qualify for the full State Pension.
How are National Insurance credits important?
National Insurance credits are a way to get qualifying years for your State Pension if you are not working or making NI contributions, for example if you:
- Claim unemployment benefits
- Claim Statutory Sick Pay
- Are a parent or carer receiving Child Benefit
- Receive Carer’s Allowance
Getting National Insurance credits helps protect your State Pension entitlement even if you take time out of work or are on a low income. Make sure to claim any benefits you are entitled to in order to get the credits.
Can I inherit or derive a State Pension from my spouse?
There are some special rules that allow you to inherit or derive a State Pension from your spouse or civil partner’s National Insurance record if you are widowed or divorced.
If your spouse or civil partner has died, you may be able to inherit part or all of their State Pension. This depends on when the marriage/civil partnership began and if you reached State Pension age before April 6 2016.
If you divorce or dissolve a civil partnership, you may be able to transfer part of your State Pension entitlement to your ex-partner. This equalises any pension rights built up during your marriage or civil partnership.
Inheriting or transferring pension entitlement can help boost your qualifying years for the State Pension.
Does my workplace or private pension affect my State Pension?
Having a private or workplace pension does not affect your State Pension entitlement. They are separate schemes.
A private/workplace pension supplements the State Pension but does not replace it. Even with a good private pension, you will usually need the foundation of a full State Pension as well.
Make sure you understand how each pension works so you can plan for retirement effectively:
- State Pension – Regular, fixed payments from the government if you meet the National Insurance contribution requirements.
- Workplace pension – Additional income from your workplace pension pot built up through contributions from you and your employer.
- Private pension – Retirement income from pension products you arrange yourself, e.g. personal pensions, SIPPs.
Can I check if I will get the full State Pension amount?
Yes, you can get a forecast to check if you are on track to qualify for the full State Pension currently worth £179.60 per week. There are two ways to get a forecast:
- Use the Check your State Pension online service. This will show your National Insurance record and estimated pension to date.
- Request a State Pension statement by calling 0800 731 0175 or filling in a BR19 form. This will be posted to you.
It’s a good idea to check your forecast from age 50 onwards so you have time to take action if you are set to get less than the full amount.
What can I do if I won’t get a full State Pension?
If your forecast shows you are not on target to get the maximum State Pension, there are some steps you can take:
- Pay voluntary Class 3 National Insurance contributions for any missing years if you can afford it.
- Check you are claiming any benefits/credits you are eligible for during gap years, e.g. Child Benefit as a parent.
- Look into inheriting or transferring pension entitlement from a previous spouse if relevant.
- Consider working for longer or deferring your State Pension to build up more years if you are close to 35.
- Be aware your private/workplace pension may need to provide more retirement income.
Taking action as early as possible gives you more chance of boosting your State Pension to the full amount.
At what age can I start claiming my State Pension?
The current State Pension age is 66 for both men and women. This is the earliest age you can start claiming your State Pension.
The State Pension age is rising over time:
- It will increase to 67 by 2028.
- After that, it will increase to 68 between 2044 and 2046.
You can check your own State Pension age by using the State Pension age calculator on the government website. This will factor in planned rises to the pension age.
If you have 35 qualifying years, you can claim the full State Pension as soon as you reach your personal State Pension age. There’s no benefit to delaying your claim after you reach this age.
Can I increase my State Pension by deferring my claim?
Yes, in some cases if you defer claiming your State Pension, you may get extra payments when you do eventually claim. This can boost your overall pension entitlement.
You can defer by simply delaying making a claim when you reach State Pension age. This may allow you to get the following increases:
- An extra 5.8% per year if you defer for at least 12 months in a row after reaching State Pension age.
- One-off lump sum payment if you defer for at least 12 months in a row.
However, any extra payments you get from deferring may be taxed as earned income after State Pension age.
Deferring is an option if you are still working full or part-time when you reach State Pension age and don’t need the income immediately.
Is it possible to lose part of my State Pension?
Normally once you qualify for a State Pension, the regular payments should continue for life. So you cannot lose your pension completely unless very specific conditions are met.
However, in some limited cases, your State Pension payments could be stopped temporarily if:
- You fail to notify changes in your circumstances, e.g. moving abroad.
- You go to prison for 13 weeks or more.
- You are overseas for over 4 weeks but under State Pension age.
Your pension may be reduced if you live in certain overseas countries like Canada or New Zealand that have social security agreements with the UK.
In summary, you can’t normally lose your State Pension but payments can be affected if you don’t follow the rules for reporting changes or being overseas.
Conclusion
Getting the full State Pension can provide an important foundation for retirement income. To receive the current maximum of £179.60 per week, you need to have at least 35 qualifying years on your National Insurance record.
Check your record regularly and take steps to fill any gaps early on, for example through voluntary contributions or credits if you have been unemployed, sick or a carer. This will help ensure you meet the minimum requirements for the full State Pension when you reach State Pension age.
Deferring your pension or inheriting/transferring entitlement from a spouse can also boost your overall payments if you are close to the 35 year threshold.
Understanding the State Pension rules in detail allows you to plan your retirement effectively and maximise your income in later life.