There's Still Time To Fill State Pension Gaps

THE FULL STATE PENSION will be worth £203.85 a week from April 2023, or £10,600 a year, so on its own it probably won't be enough to fund the lifestyle you want. Hopefully when you retire you'll have a mix of additional assets, such as a workplace pension and savings, to make a difference in later life.

- Andy Webb

But the State Pension is still going to be vital, and it's dangerous to take it for granted when calculating what you'll need. That's because it's not guaranteed you'll get it, or that you'll get the full amount.

Though the rules vary depending on your current age, for men born after April 6, 1951 and women born after April 6, 1953, you'll broadly need to have ten qualifying years in order to get any of it at all. And to get the full amount you'll probably need 35 years in total (frustratingly it can vary by individual-my record says I only need 30!).

If you fall short of this total you'll receive less of the State Pension.

That can be quite significant, roughly £275 for each year. So if you have, say, 24 out of 35 years, you'll get around two-thirds of the max amount, losing you around £3,500 every year.

So how do you ensure you get the full amount? Well, a qualifying year is one in which you paid National Insurance. Most people do this via their salary. If you work full-time for 35 years then you’ll have a full record and get the full amount.

It’s also possible you might have received National Insurance credits from payments such as Job Seeker’s Allowance and Child Benefits, and those credits can count towards a full qualifying year too.

To find out exactly how many full NI years you’ve accumulated, and how many more years you need you’ll need to check your record at gov.uk/check-state-pension or contact the Future Pension call centre on 0800 731 0175. You’ll also be able to see the years where you fell short.