State pension alert: Your sum may be affected if you have a workplace or personal pension | Personal Finance | Finance


The state pension is a vital entitlement for millions, and consequently, people will want to check how much they can get. Overseen by the Department for Work and Pensions (DWP), the full state pension currently stands at £179.60 per week. How much a person gets, though, is dependent primarily on their National Insurance record and contributions throughout their lifetime.

What is important to note, however, is that individuals could see their sum affected in a different way.

The Government has explained there may be implications of a workplace or personal arrangement on the state pension sum – namely a person’s starting amount.

The starting amount for the new state pension is the higher of either:

  • The amount a person would get under the old state pension rules
  • The amount a person would get if they new state pension had been in place at the start of their working life

The starting amount may include a deduction in certain circumstances, and this is what Britons should be aware of.

READ MORE: Inheritance tax rules are changing next year – 230,000 affected

“This is known as being ‘contracted out’ of the Additional state pension and will affect most people who have been in work.”

Thankfully, people can check whether they have been contracted out in the past to see if they will be affected.

It is recommended individuals check their old payslips, namely their National Insurance number, for the details. 

People were contracted out if their National Insurance contributions line has the letter D or N next to it. 

These include:

  • The NHS
  • Local councils
  • Fire services
  • The civil service
  • Teaching
  • Police forces
  • The armed forces

Individuals paid National Insurance at a lower rate if they were contracted out. 

People can claim the new state pension if they were a man born on or after April 6, 1951 or a woman born on or after April 6, 1953.

Britons will usually need at least 10 qualifying years on their National Insurance record to get any state pension.

Some 35 qualifying years are usually needed for a full state pension payment.

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