It’s been reported that as many as half of retirees are not receiving the Full State Pension they are entitled to. This problem affects many pensioners, especially those who are on the New State Pension system, which applies to those born after 1951 (men) or 1953 (women).
For these pensioners, the Full State Pension should amount to £230.25 per week in 2025/26, but an estimated 50% of people are not receiving this full amount. So, what’s going wrong, and how can you fix it?
What Is the New State Pension?
The New State Pension applies to people who reached State Pension age after April 2016. To qualify for any State Pension, you need to have at least 10 qualifying years of National Insurance (NI) contributions. A qualifying year is a year in which:
- You worked and paid National Insurance contributions,
- You received NI credits due to unemployment, illness, being a parent or carer,
- Or you made voluntary NI contributions.
The number of qualifying years on your National Insurance record determines how much State Pension you will receive. If you have 35 qualifying years, you’ll get the full amount of £230.25 per week.
Why Are So Many Missing Out on the Full State Pension?
As noted, about 50% of pensioners are not receiving the full amount. This is often because they lack enough qualifying years in their National Insurance record.
- You need 35 years of NI contributions to receive the full amount.
- If you have less than 35 years, your pension will be reduced based on the missing years.
- It’s possible that many people are unaware that they can make voluntary NI contributions to fill gaps in their record.
How Can You Boost Your State Pension?
According to Tom Selby from AJ Bell, there are ways to increase your State Pension amount:
Pay Voluntary NI Contributions:
If you don’t have enough qualifying years, you can pay voluntary NI contributions. This can increase your State Pension, but it’s important to ensure that doing so is worthwhile and won’t impact your other benefits.
Check for Missing NI Credits:
If you were unemployed or cared for children or elderly relatives, you might be eligible for NI credits, which count towards your pension entitlement. Before paying for voluntary contributions, check if you’ve already earned credits.
State Pension Forecast:
A good first step is to check your State Pension forecast to see how much you’re likely to receive. If it’s less than the full amount, you might be able to boost it.
Contact the Future Pension Centre:
If you’re unsure whether voluntary NI contributions are right for you, contact the Future Pension Centre. They can provide expert advice on how to increase your pension.
What Are the Risks of Paying Voluntary NI Contributions?
While paying voluntary NI can be beneficial, it’s essential to understand the potential risks:
Increasing your State Pension could affect your eligibility for other benefits, like Pension Credit or the Winter Fuel Payment.
Before paying voluntary contributions, you should ensure that you can still claim the other benefits you rely on, and that it won’t affect your overall financial situation.
What Are the Future Changes to State Pension Age?
The current State Pension age is 66, but it is set to rise to 67 by April 2028, and possibly to 68 in the mid-2040s. This change will affect when you can start receiving your State Pension, so it’s important to stay informed about the changes.
If you’re not receiving the Full State Pension, you might be missing out on money that could help in retirement. Make sure to check your National Insurance record, see if you’re eligible for voluntary contributions, and review your State Pension forecast. Contact the Future Pension Centre for advice on boosting your pension and securing the retirement you deserve.
FAQ’s
Why am I not receiving the Full State Pension?
You may not have enough qualifying years of National Insurance (NI) contributions. You need 35 years for the full State Pension of £230.25 per week.
How can I increase my State Pension?
You can increase your State Pension by paying **voluntary NI contributions** or by checking if you’re eligible for **National Insurance credits** for periods of unemployment or caring for others.
What is a qualifying year for State Pension?
A qualifying year is a year in which you worked and paid National Insurance, received National Insurance credits, or made voluntary contributions.
Can paying voluntary NI contributions increase my State Pension?
Yes, if you have gaps in your National Insurance record, paying voluntary contributions can boost your State Pension, but make sure it’s worth it and won’t affect your other benefits.
What is the State Pension age in the UK?
The State Pension age is currently 66, but it will rise to 67 by 2028 and possibly to 68 in the mid-2040s. Keep track of these changes to know when you can access your State Pension.
