Pensioners getting full state pension without working – full rules | Personal Finance | Finance
Certain individuals will be able to claim the full £221 weekly state pension upon retirement, even if they haven’t paid any National Insurance throughout their careers.
The new state pension, in effect since 2016, has a few eligibility criteria for people to claim their dues in retirement.
Specifically, they must be a man born on or after 6 April 1951 or a woman born on or after 6 April 1953 and have at least 10 qualifying years to receive a portion of the state pension and 35 to get the full £221.20 per week.
A qualifying year is typically defined as a full year during which a person paid National Insurance through their career, whether self-employed or not.
Individuals can also choose to pay voluntary National Insurance if they are just short of the 10 years needed to get some pension and the 35 years to get full state pension.
However, some people can access the full amount without paying this or working in traditional jobs by getting National Insurance credits instead.
Stuart Carswell, Independent Financial Adviser and Director at Pareto Financial Planning, explained: “NI credits help non-employed individuals, like carers or parents, qualify for a pension. Without these credits, many would fall short of the necessary years for a full pension.”
“NI credits ensure that vulnerable groups, such as caregivers and disabled individuals, are not disadvantaged in retirement. This social protection mechanism reduces poverty risks for those unable to work.”
Eligibility for National Insurance credits spans a broad spectrum of individuals, including those on Jobseeker’s Allowance, Child Benefit, or Carer’s Allowance.
Others eligible include non-self-employed jury service members, partners of armed forces personnel, and individuals who have been wrongfully imprisoned.
A warning from the expert stressed: “Some individuals may not be aware of how to claim NI credits, which could lead to gaps in their record and a reduced pension. This can particularly affect low-income individuals or those with complex personal circumstances.”
The process to claim National Insurance credits varies based on eligibility. For instance, wrongfully imprisoned people need to get in touch with HMRC, while those receiving Employment and Support Allowance have different procedures to follow.
