State pension is ‘valuable’ – Britons urged to ‘make the most’ out of sum | Personal Finance | Finance


The state pension is received by millions of people, who will have built up valuable National Insurance contributions or credits to secure their sum. However, one expert has said many people may not be aware of how valuable their state pension is.

The state pension recently rose by 3.1 percent this year, following the temporary suspension of the triple lock.

Inflation, though, has far outpaced this increase at seven percent.

It means in real terms, pensioners are effectively losing money from this form of income.

While this may be frustrating for pensioners, the state pension is still proving a vital part of many retirement plans.

“That’s based on a healthy 65-year-old buying an annuity which rises by three percent each year.”

Based on this analysis, the state pension, ideally the full amount, can provide vital support to older people.

As such, many will want to make sure they are going to secure the full amount.

This is likely to be a matter of assessing one’s National Insurance contributions against the state pension rules.

When it comes to the new state pension, Britons typically need at least 10 qualifying years of NI to get any sum at all.

For the full state pension, it is usually the case some 35 qualifying years are required – especially if someone does not have an NI record before April 6, 2016.

Some individuals may get less than the new full state pension if they were contracted out before April 6, 2016.

When working, a person pays National Insurance and gets a qualifying year if:

  • They are employed and earn over £190 per week from one employer
  • They are self-employed and pay National Insurance contributions

Thankfully, Britons do not need to be in the dark when it comes to their state pension.

The Government has a state pension forecast tool which can help individuals find out how much they could get, and when.

There is an online service, usually seen as the quickest way of finding out, but people will need a Government Gateway ID.

If they do not have one, then they will be able to register when using the tool for the first time.

Alternatively, Britons can also fill in the BR19 application form and send it by post. The Future Pension Centre can also be called if a person wants the form posted out to them. 

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