To qualify for the full new State Pension, you’ll need 35 qualifying years of National Insurance contributions or credits. This means 35 years of paying or being credited with National Insurance contributions.
What is the new State Pension?
The new State Pension is a regular payment from the government that you can claim when you reach State Pension age. State Pension age is currently 66 for both men and women.
The new State Pension replaced the old two-tier state pension system for people who reached State Pension age on or after 6 April 2016. The new State Pension is designed to be simpler than the old system, but how much you get depends on your National Insurance record.
How is the new State Pension calculated?
The full new State Pension is currently £179.60 per week (in 2022/23). However, the actual amount you get depends on your National Insurance record.
To get the full amount, you’ll need 35 qualifying years on your National Insurance record. If you have less than 35 qualifying years, the amount you get will be proportionally smaller.
For example:
Qualifying years | New State Pension |
---|---|
35 | £179.60 per week |
30 | £154.35 per week |
25 | £129.10 per week |
20 | £103.85 per week |
If you have less than 10 qualifying years on your record, you will not be eligible for any new State Pension.
What are qualifying years?
Qualifying years are ones in which you’ve either:
- Paid or been credited with enough National Insurance contributions
- Got National Insurance credits, for example if you were unemployed, sick or a parent or carer
To get a qualifying year, you need to have:
- Paid or been credited with National Insurance contributions totalling the equivalent of 52 weeks at the minimum NI payments level for that year while aged between 16 and your State Pension age
- Got National Insurance credits for that year, for example if you were unemployed, sick or a parent or carer
The minimum NI payment level is quite low, so most people who work will accrue a qualifying year. The minimum levels are:
Tax Year | Minimum NI contribution |
---|---|
2022/23 | £6,240 |
2021/22 | £6,136 |
2020/21 | £6,032 |
2019/20 | £6,032 |
So as long as you earn more than this threshold, you will typically get a qualifying year towards your State Pension.
How to check your National Insurance record
You can check your National Insurance record to see how many qualifying years you have by creating an account on the GOV.UK website. This will show any gaps in your record.
It’s a good idea to do this regularly, ideally once a year, so you can check everything is in order. That way you can challenge any errors or omissions and make voluntary NI contributions to plug any gaps.
How to get more qualifying years
If you have gaps in your National Insurance record, there are several ways to get more qualifying years:
- Make voluntary NI contributions – You can pay to fill gaps in your record by up to 6 years. This buys missing qualifying years to boost your State Pension.
- Continue working – Carrying on working before State Pension age will help you accrue more qualifying years.
- Receive NI credits – Those on low incomes or benefits like Jobseeker’s Allowance may get NI credits that count towards State Pension.
- Child Benefit – Parents who receive Child Benefit for children under 12 are credited with NI contributions.
Making voluntary NI contributions or earning more qualifying years through work or credits can be an effective way to max out your State Pension entitlement.
Rules for self-employed
The rules are slightly different if you are self-employed. To get a qualifying year, you need to have:
- Paid Class 2 National Insurance contributions
- Had profits at least equal to the Small Profits Threshold (currently £6,725)
Provided you earn over the Small Profits Threshold, you will gain a qualifying year to count towards your State Pension as a self-employed person.
Special rules
There are some special rules that apply in certain circumstances:
- Pre-2016 – You may have earned qualifying years under the old State Pension system before 2016 that still count.
- Married women and widows – Special rules apply if you paid the married woman’s stamp before 1977 or are widowed.
- Divorced – You may be able to use your ex-spouse’s NI record.
It’s worth checking how these special rules apply to your specific situation if relevant.
Should I pay voluntary NI contributions?
Whether voluntary NI contributions are worthwhile depends on your individual circumstances:
- How many qualifying years do you already have?
- How much extra pension would you get by plugging gaps?
- How much would it cost to purchase extra years?
- Will you reach 35 qualifying years through other means e.g. working longer?
As a general guide, if you are within 5 years of getting the full State Pension, paying voluntary contributions is usually a good investment. But get advice tailored to your situation.
Conclusion
You need 35 qualifying years on your National Insurance record to receive the full new State Pension. A qualifying year requires paying or being credited with National Insurance for the equivalent of 52 weeks.
It’s important to check your National Insurance statement regularly to ensure you have enough qualifying years. Make voluntary contributions if needed to plug any gaps and maximise your State Pension entitlement.