When you come to retirement age, you want to make sure you are receiving the pension you are entitled to.
There are two different types of State Pension, the basic State Pension and the new State Pension.
Since coming into force in 2016, the new State Pension is based on your National Insurance record when you get to State Pension age.
Who is eligible for the new State Pension?
If you are a man, you are eligible for the basic State Pension if you were born before 6 April 1951.
If you are a woman, you must have been born before 6 April 1953.
However, if you were born on or later than these dates, you must claim the new State Pension.
To be eligible for the new State Pension, you should have 10 qualifying years on your National Insurance record.
If you were contracted out prior to 6 April 2016, you may receive less than the new full State Pension.
If you do not have a National Insurance record before 6 April 2016, you must have 35 qualifying years to get the new full State Pension
You pay National Insurance and obtain a qualifying year if you are:
- Employed and being paid over £242 from one employer weekly
- Self-employed and making National Insurance contributions.
You could be entitled to National Insurance credits if you are unable to work.
What if you continue working?
According to the Government, if you continue to work after the State Pension age, you will be able to stop paying National Insurance.
You will also be eligible to request flexible working arrangements.
What if your National Insurance record is incomplete?
If you have a gap in your National Insurance record, you have until 5 April 2023 to make up for the gaps between 2006 and 2016.
After this, you will not be able to make up for any losses for these years.
Making up for a full-year shortfall will work out as “getting it back” in three years of state pension.
You can access a State Pension forecast to find out how much State Pension you could get, when you can get it, and how to boost it.
To make sure you address any gaps in your National Insurance record, you can apply for a National Insurance statement.
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