The basic State Pension
The basic State Pension is a government-administered
pension. It is based on the number of qualifying years gained through
National Insurance contributions (NICs) you've paid, are treated as having
paid or have been credited with throughout your working life.
Who qualifies?
If entitled, you can get the basic State Pension when you reach State
Pension age. This is 65 for men and 60 for women born on or before 5 April
1950. The State Pension age for women born on or after 6 April 1950 is
rising from 60 to 65 between 2010 and 2020. It will increase for both men
and women from age 65 to 68 between 2024 and 2046.
You qualify by building up enough 'qualifying years' before State Pension
age.
Qualifying years?
A qualifying year is a tax year where you have sufficient income to pay
NICs, or are treated as having paid or being credited with NICs.
In 2007-2008, you need to have £4,524 or more of such earnings if you are
an employee or £4,635 or more if you are self-employed.
How many qualifying years?
The number of qualifying years you normally need for a full basic State
Pension is equal to about 90 per cent of your working life. This is
calculated from the start of the tax year in which you reach 16 until the
end of the tax year preceding the year in which you reach State Pension age.
Currently men normally need 44, and women normally need 39 qualifying
years to get the full State Pension.
However, if you reach State Pension age on or after 6 April 2010,
you will need 30 qualifying years for a full Basic State Pension.
If you've been claiming benefit
If you've been receiving certain benefits, such as Carer's Allowance,
Jobseeker's Allowance or Incapacity Benefit, you'll have automatically
received National Insurance credits for the weeks when you've been claiming.
If you've been a parent or carer
If you've not paid enough NICs because you've been looking after children
or caring for someone long-term, the number of qualifying years you need to
qualify for the basic State Pension will be reduced. However, you may be
eligible for 'Home Responsibilities Protection' if
Gaps in your NICs record
There could be gaps in your NICs record for various reasons. For example,
you have been:
- unemployed and not claiming benefit
- self-employed and exempt from paying Class 2 contributions
- living abroad
Gaps could reduce your number of qualifying years.
How to check your NICs record
HM Revenue & Customs (HMRC) sends out letters ('shortfall in your NI
record') between September - January each year if you have any gaps in your
record. Alternatively, you can request a State Pension forecast and check
for yourself.
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