The Department for Work and Pensions (DWP) reports that over 13 million older people in the UK, including more than one million in Scotland, currently receive the State Pension. However, many approaching retirement may not realise that the State Pension age is rising from 66 to 67, with the increase set to be fully implemented by 2028.
Qualifying for the New State Pension
To receive any New State Pension, you need at least 10 qualifying years of National Insurance (NI) contributions, which do not have to be consecutive. Qualifying years can be earned through employment, self-employment, NI credits (for unemployment, illness, caring, or parenting), or voluntary contributions. Those who have lived or worked abroad or paid reduced married women's or widow's contributions may also qualify.
The full New State Pension amount is £241.30 per week. To achieve this, you typically need around 35 qualifying years of NI contributions. However, if you were 'contracted out' of the Additional State Pension before 6 April 2016, you may need more than 35 years to receive the full amount. The DWP advises checking your NI record on GOV.UK for personalised guidance.
How to Build Qualifying Years
If you are employed, you earn a qualifying year by earning over £242 per week from one employer. Those earning between £123 and £242 per week may still qualify without paying NI. Self-employed individuals must pay NI contributions to get a qualifying year.
If you are not working, you can receive NI credits if you claim Child Benefit for a child under 12 (or under 16 before 2010), Jobseeker's Allowance, Employment and Support Allowance, or Carer's Allowance. Those not working and not receiving credits may consider paying voluntary NI contributions to boost their State Pension.
Gaps in Your NI Record
It is possible to have gaps in your NI record and still receive the full New State Pension. You can request a State Pension statement from the DWP to estimate your pension, and an NI statement from HMRC to check for gaps. If gaps prevent you from getting the full amount, you may be able to claim NI credits or make voluntary contributions. The online tool on GOV.UK allows you to check your NI record and State Pension age.
The State Pension age is also scheduled to increase from 67 to 68 in the mid-2040s. For more details, visit the dedicated State Pension section on the DWP website.
