State pension: Brits get lower sum due to National Insurance record | Personal finance | Finance


The status of a person’s national insurance record plays an important role in their entitlement to a state pension. People with insufficient background may be denied full state pension when they come to apply for it.

Not everyone receives the full state pension, and missing the maximum amount could be a blow to someone’s retirement prospects.

The amount of state pension a person is entitled to depends on their national insurance record when they reach statutory retirement age.

Currently the new state full pension is worth £179.60 a week, or £9,339.20 for a full year.

This amount is expected to increase from April 2022, bringing the total amount to £185.15.

READ MORE: “It’s a joke!” State pensioners call for triple lockdown freeze to be lifted and £400 a week

Workers must have paid National Insurance the right amount to get a qualifying year, but that is not the only requirement.

There are other specific criteria for what allows people to earn a qualifying year that must be met.

For example, one of the elements of the criteria relates to a person’s income in a given tax year. Tax years run from April 6 to April 5.

Employees need to earn £120 a week for the 2021/22 tax year to get a qualifying year.

People with low incomes or working part-time could also be vulnerable.

Britons can check their National Insurance record on the government’s website to check if there are any gaps that could deny them full state pension.

They may be able to claim certain benefits with National Insurance credits attached to help fill these gaps.

Alternatively, it may be possible to pay voluntary contributions in order to gain more qualifying years and increase a person’s state pension entitlement.


About Author

Comments are closed.