State pension warning: Brits could be denied payment based on National Insurance record | Personal finance | Finance

On Saturday, BBC Money Box said Peter had written in need of answers regarding his sister’s state pension. He said: “My sister was self-employed and was told she couldn’t have a pension because she didn’t buy enough stamps.”

He wasn’t sure the decision was legal.

Journalist Dan Whitworth has explained how the self-employed can ensure they qualify for a state pension and how Brits can get the full state pension.

To get a new full state pension people need 35 years of national insurance contributions, but if someone is at least 10 they can still claim something.

Britons generally need a total of 30 years of national insurance contributions or credits to get the full basic state pension.

The amount a person receives may differ, for example if it was outsourced.

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Mr Whitworth said: ‘If you’re at least 10 you get something.

“It’s around £52 a week, which is just over a third of full board.”

National Insurance contributions are usually deducted from people’s wages if they are working, but there are different rules for the self-employed, explained podcast presenter Paul Lewis.

Mr Whitworth agreed, saying the self-employed must apply for class two contributions.

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The actual amount one gets does not depend on one’s national insurance record.

Someone’s national insurance record before April 6, 2016 is used to calculate their starting amount. This is part of their new state pension.

If the starting amount is less than the new full state pension, people can get more by adding more qualifying years to their National Insurance record after 5 April 2016.

They can do this until they reach the full amount of the new state pension or reach state retirement age – whichever comes first.

Each qualifying year on his National Insurance record after April 5, 2016 will add around £5.29 a week to his new state pension.

The exact amount they will receive is calculated by dividing £185.15 by 35 and then multiplying by the number of eligible years after April 5, 2016.

People can use the state pension forcing tool on the government website to find out how much they could get and when.


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Elaine R. Knight