How many years you have to work to claim a full state pension under DWP National Insurance rules
It may seem like a long way to many, but it’s never too early to start thinking about your retirement.
Many employees are eligible for workplace pensions through their employment. Contributions are deducted monthly from their salary, which are often matched or supplemented by the employer.
Those earning more than £10,000 a year are automatically enrolled in workplace pension schemes if they are between 22 and the statutory retirement age.
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Then, when that employee reaches a certain age, often around 60, they can choose to start retiring. As a general rule, the older you are when you retire, the more money you will receive.
But not everyone is entitled to a professional pension or has not contributed to it.
In addition to private workplace pensions, anyone who pays national insurance contributions for a certain number of years is entitled to a state pension from the government. Those with private pensions can also claim the state pension, which provides a handy supplement to retirement income. State pensions are also a vital lifeline for those who have not obtained occupational pensions or who have not paid a large sum into one.
However, state pension payments depend on national insurance contributions and credits, either by working, claiming benefits or a combination of the two.
Here we look at the rules for people reaching statutory retirement age after April 2016, which means they are entitled to the new state pension.
How long you have to work to apply for the new state pension
To qualify for a state pension you will need at least 10 years on your national insurance record. To get the full amount, you need 35 years. The years do not have to be consecutive, there may be gaps.
National Insurance payments or credits included on file before April 6, 2016 are taken into account when calculating the amount people receive under the new state pension.
These are used to create a “starting amount”. This amount is either what they would get under the old state pension rules, or the amount they would get if the new state pension rules were in place at the start of their working life, whichever amount is greater. raised.
If their starting amount is less than the new state pension, they can top it up until they reach the full amount or state pension age, whichever comes first. Currently each year adds around £5.13 a week to the state pension payment.
The new full state pension is currently £179.60 a week, although this will change each year with inflation. So if you retire in 2050 you won’t be stuck with a payment of £179.60 a week if that amount is worth less in 2050 than it is today.
Those who reached working age after April 2016 will have their pensions calculated entirely according to the new rules. They will need to have a National Insurance record for 10 years to get one, and 35 years for the full amount, although this may change in the years before you retire.
How to qualify for National Insurance payments through work or benefits
To qualify for a state pension, you need at least 10 years on your National Insurance (NI) record. To get this, you can work and pay NI contributions; obtain NI credits while unemployed, ill, or a parent or caregiver; or pay voluntary NI dues.
In general, the longer you invest, the more money you will get, up to the maximum rate.
You can get NI credits for claiming Child Benefit, Jobseeker’s Allowance or Employment Support Allowance.
What is the legal retirement age?
You must be 66 to qualify for the state pension, but this will increase to 67 for those born after April 1960 and 68 for those born after April 1977. It is likely to increase again, as the DWP revise the state retirement age. . You can check yours here: https://www.gov.uk/state-pension-age
How can I find out the amount of my state pension?
You can check your state pension forecast here: https://www.gov.uk/check-state-pension. To do this, you will need a government gateway or a Gov.uk verification account.