Some state pensioners will receive £0 from the Department for Work and Pensions (DWP) because of a little-known HM Revenue and Customs (HMRC) rule regarding National Insurance (NI) contributions. While the state pension is boosted annually by the triple lock, currently paying up to £241.30 per week, not everyone qualifies for any payment at all.
Minimum National Insurance Years Required
To receive any state pension, individuals must have at least 10 qualifying years of NI contributions on their HMRC tax record. These credits are typically earned through employment where earnings exceed the £12,570 Personal Allowance threshold, triggering NI payments. However, NI credits can also be obtained through other means, such as claiming Child Benefit while caring for children, receiving statutory sick pay, serving on jury duty, being a foster carer, or completing a government-approved training course.
As explained by Martin Lewis’ Money Saving Expert (MSE) website: "You won't get any State Pension if you have less than 10 qualifying NI years when you reach State Pension age."
Options to Fill Gaps
For those approaching or at retirement age with insufficient NI years, it is not too late to take action. Individuals can purchase voluntary NI contributions to fill missing or partial years. MSE advises: "If this is you, you may be able to buy NI contributions to get you over the 10-year mark. For people who have reached State Pension age and are on a low income, Pension Credit may also help."
MSE adds: "If your State Pension is, or is forecast to be, less than £241.30 a week, and you won't be able to plug gaps by any other means, topping up could be a no-brainer."
Cost and Benefit of Buying NI Credits
Purchasing a full NI credit for the 2025-26 tax year costs £923. However, this would add approximately £358 per year to a person's state pension. According to MSE, this means a retiree would need to live for just three more years to break even on the investment. The state pension age is also set to rise from 66 to 67 over the next two tax years, meaning some will have to wait longer to access their payments.
