The amount of state pension a person receives when they reach statutory retirement age is directly linked to their national insurance record. Therefore, if their record is insufficient, individuals may receive less than the full amount.
New pensions and basic state pensions are based on an individual’s national insurance record when they reach statutory retirement age, but the amount needed for the full amount differs between the two.
To get a new state pension, Britons usually need to have 10 years of qualifying on their national insurance record.
Up to 35 years of probation could be needed to obtain the new full-rate public pension, while it is 30 years for the basic full-rate public pension. Britons could increase their state pension entitlement by gaining more qualifying years towards the maximum amount required.
However, some people may receive less than the new full state pension even if they have enough probationary years, if they were contracted out before April 6, 2016.
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Workers who contribute to National Insurance get a probationary year if:
- They are employed and earn over £184 a week with one employer
- They are self-employed and pay national insurance contributions
Those who do not work can obtain probationary years by claiming certain benefits.
If someone wants to improve their NI record outside of their job or benefits, they may be able to pay voluntary National Insurance contributions.
This could help fill in the gaps in their file.
Britons can check their National Insurance record through the official government website to see if they have any gaps that could deny them full state pension.
The new state full board is currently worth £179.60 a week. From 11 April 2022 this will increase to £185.15.