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Most people believe that everyone receives the full basic state pension on retirement - but thousands do not. The amount you are entitled to depends on the number of years you have worked and the amount of national insurance contributions you have paid. The sums are complicated, but if you haven't always been in work you may get less than you might expect.
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How long do I have to work to get a full pension?
Men usually have to have been credited with contributions for 44 years and women for 39 years to qualify for the full basic state pension of £67.50 a week.
What if I haven't got such a good record?
You could be in for a shock - the fewer credits you have, the smaller your slice of the state pension will be. If you have 10 or 11 qualifying years you will only get 25% of the basic pension - if you have less than that you may get nothing.
What is a qualifying year?
A tax year in which you have received qualifying earnings and paid national insurance contributions. In some circumstanes you may be credited with earnings even if you were not working. This is likely if you are or were incapable of work due to illness, caring for someone or in receipt of certain benefits.
Can I make up any shortfalls?
Yes, you can make voluntary contributions to make up an incomplete contributions record. But you must do this within certain time limits. You must pay by the end of the sixth tax year after the one you missed. So you can make up only a maximum of six years of contributions. Voluntary contributions cost £6.55 a week.
How do I find out about my entitlement?
If you are coming up to retirement in the next few years, the best way to check your position is to get a pension forecast using form BR19 from your local benefits agency or write to Retirement Pension Forecast and Advice Unit, Pensions and Overseas Directorate, Tyneview Park, Newcastle Upon Tyne, NE98 1BA.
The forecast will tell you the amount of basic pension you have already earned, and what you can expect at retirement taking into account what you might earn before you retire. It will also tell you if there is anything you can do to improve your pension, but you will have to follow this up yourself. If you are already retired and discover that you could qualify for a fuller pension by paying extra contributions, you can still do so - for up to six years.
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