State pension is rising but you might be denied full sum – check now

Investment advisor on how to get the most from your state pension

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Millions of pensioners use the state pension as the foundation to build their retirement on, but not everyone will be able to get the maximum amount. Britons can find out what they are entitled to online.

How much state pension can be claimed?

At present, the full new state pension is worth £179.60 per week, which adds up to a yearly amount of £9,339.20.

The basic state pension pays out less money to pensioners, providing £137.60 per week or £7,155.20 for the year.

However, the basic state pension is paid only to those who reached state pension age before April 6, 2016, meaning future retirees will get the new version.

The rate of the state pension is set to increase in April 2022, as it does every year under the terms of the triple lock policy.

This guarantees the state pension rises by at least 2.5 percent, but it can also increase by more than that, if either the rate of inflation or average earnings growth is higher.

The rate of inflation is being used to boost the state pension this year, increasing it by 3.1 percent.

Average earnings growth actually came in higher than this and would have entitled pensioners to an income boost of more than eight percent, but the Government decided to remove the earnings link for the 2022/23 tax year.

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This was done because it was believed the average earnings figure was artificially inflated by millions of Britons returning to work following the closure of the furlough scheme.

As a result, the full new state pension will rise to £185.15 for the upcoming tax year, providing an income of £9,627.80 for the full year.

This is an improvement of £288.60 in total income on the 2021/22 state pension.

However, not everyone is entitled to the full amount of state pension.

National Insurance record

National Insurance record is directly linked to the state pension in that it determines how much someone is eligible to get.

Britons need an absolute minimum of 10 years’ worth of National Insurance contributions to get any state pension.

For the full amount, 35 qualifying years are needed.

These years do not have to be consecutive, and can be attained by paying contributions through working or by getting National Insurance credits for receiving certain benefits.

How to check entitlement

If someone is unsure what they are entitled to, they can check online via the Government website.

They can use the state pension forecast tool to get an estimate of how much they will get in retirement, and they can also check their National Insurance record to see if there are any gaps in their record.

Filling these gaps could increase people’s entitlement to the state pension, and they may be able to do this by paying voluntary contributions if they do not have enough qualifying years through working or National Insurance credits.

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