Are you on target to receive full state pension when you retire?
You might be aware of a recent item raised on The Martin Lewis Money Show on ITV about checking whether your state pension is forecast to be at the full state pension level. It is a hot topic and one you should definitely look at. If you haven’t watched it, you should. Please follow the link below for more information:
www.moneysavingexpert.com/news/2023/02/martin-lewis-urgent-state-pension-boost/
The current state pension payment is £203* per week if you have paid approximately* 35 years national insurance payments.
*These figures will differ and individual circumstances will apply but it gives you a rough guide on what to expect. It is important to check that you are on target for the full state pension entitlement now.
If you have any gaps in contributions between 2006 and 2017 you need to take action as soon as possible. There is an opportunity to top up your contributions to ensure you meet the full state pension level. Currently there is an opportunity to backdate to 2006 any shortfall in NI contributions (this is 17 years’ worth of potential contributions) but from July 2023 this opportunity will be restricted to 6 years’ worth of backdates.
Please note this is only for people who are under state pension age.
It is particularly important to check if you have gaps in your NI payments and if:
you have been caring for someone
caring for a child
if you have lived abroad,
had a low income
or taken a career break
Before you buy any additional years check if you are due free credits, particularly if the above applied to you. You can go and check via the national insurance credits section of Gov.uk and you may get those years back without having to pay for it.
What you need to do now to check:
Login in to your Government Gateway Account
You will need to input your name, date of birth, National Insurance number and your postcode
It will then prompt you to do an ID check which will involve downloading the gov.uk ID Check App.
Using your passport or driving licence you will verify your ID.
You can then look at your State Pension Summary page and can see if you have any gaps and the value missing for that year.
You will need to consider if it is worth it to you to make the top up contributions:
Remember, you need approximately 35 years’ worth of contributions to receive the full state pension, so if you have many years working life ahead of you, you may be able to make up any shortfall in the number of years of contributions.
Depending on what gaps you have, this could mean a lot of money to find and you will need to consider your future, if it is financially viable now and what the return means to you in the future when you do retire – it is something you really should consider though so don’t dismiss this advice.
Making top ups now could be worth a lot to you in the future so it is advisable to consider the return.
If you wish to make top up contributions or ask for further information on your state pension you can contact:
The Future Pension Centre
0800 731 0175
Given that this is a hot topic at the moment, please be aware that the helpline is very busy. Make sure you have the time and patience to stay on the line and speak to an advisor.
Where we can help
If you wish to have some assistance in checking whether you have any shortfall in NI contributions please give one of our team a call to discuss this further.