CONTRIBUTIONS TO YOUR FUTURE
So it is important to make sure you have enough contributions to get a full state pension. You currently need 30 years of contributions, but if you reach pension age after 6 April 2016 you will need 35 to get a full pension. Older readers will now be shouting “I needed 44!” which used to be true for men, and women used to need 39 years. But that was cut to 30 for anyone reaching pension age from 6 April 2010. And it is going up to 35 for men born 6 April 1951 or later and women born 6 April 1953 who will reach pension age on or after 6 April 2016.
To find out how many contributions you have paid and what state pension you might expect you can go to the new GOV.UK website. It has had some teething problems but you will get a good idea at least if you have 30 years or more by logging on here https://www.gov.uk/state-pension-statement
If you have fewer than 30 or 35 years you may be able to pay extra contributions. The rules are strict but at the moment you can go back to 2007/08 to fill any gaps in your record. And if you are a man born 6 April 1951 or later or a woman born 6 April 1953 or later you can go back to 2006/07 and will have longer to pay them. More details at http://www.hmrc.gov.uk/ni/volcontr/whentop-up.htm
There is also more information on paying extra contributions here https://www.gov.uk/voluntary-national-insurance-contributions/why-pay-voluntary-contributions
It is all very complicated but an hour or so’s research can be very worthwhile and could give you a higher state pension for life – or the peace of mind knowing you have paid enough to get one.
Most people will work for far longer than 30 or 35 years. But even when you have paid enough to get a full state pension you cannot stop paying. If you are under pension age and earn more than £149 a week you will have to pay National Insurance contributions. Once you reach pension age they stop.
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