State Pension and National Insurance Contributions

18 September 2023

Currently the state pension is funded by your National Insurance contributions. To be eligible for the state pension you must have enough qualifying years of paying National Insurance.

What is the State Pension?

The state pension is money paid to an individual upon retirement, currently age 66 and over, but it is set to increase to 67 for those born after 1960.

The amount paid is currently £203.85 per week, however this is also set to increase.


How do I Qualify for State Pension?

You must have paid enough National Insurance contributions in order to qualify for the state pension. National Insurance can be paid in a number of ways:

  • Class 1: This is deducted from your pay if you are an employee on payroll, or a credit is applied to your record if you earn within the Lower Earning Limit.
  • Class 2: This allows the self-employed to qualify for certain benefits, such as the state pension. It can be added onto your tax return.
  • Class 3: This gives individuals the chance to plug in gaps on their National Insurance record.

If you do not make enough NI contributions you might receive a reduced state pension income.


What should I do or check for?

We recommend every individual creates a government gateway account, from here you can monitor your national insurance record. It will tell you if you are eligible for the state pension, and if there are any gaps you can fill in.

Generally, it is beneficial to fill in the gaps in your national insurance record, allowing you to receive as much state pension as possible.