The State Pension is worth £200,000. 7 ways to make sure you get the maximum amount

State pension ‘not enough’ to retire on says financial advisor

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Pensions campaigner Sandra Wrench, 69, said the new Basic State Pension pays a maximum £179.60 a week, worth £9,339 a year. “To generate that level of income from a private annuity you would need almost £200,000 of pension savings.”

Even if you have workplace and personal pensions, or tax-free Isas, the State Pension is hugely valuable. These seven steps could boost your retirement income and spending power.

1. Get a pension statement. The first step is to know how much State Pension you will get when you retire, said Stephen Lowe at retirement specialists Just Group. “Get a State Pension forecast online at Gov.uk/state-pension-age. Have ID handy such as your passport and driving licence, and your National Insurance number.”

Otherwise, you can print form BR19 from Gov.uk. Or ring the Future Pension Centre on 0800 731 0175.

2. Check your National Insurance record. To qualify for the full basic new State Pension of £179.60 a week, you need to have made 35 years of National Insurance (NI) contributions during your working lifetime.

Many people fall short, particularly women, for reasons such as taking time off to raise a family, career breaks or reduced working hours. Periods of unemployment or time overseas will also knock your record. Check where you stand by visiting Gov.uk/check-national-insurance-record.

3. Claim National Insurance credits. If you are heading for a State Pension shortfall, look to plug the gap by claiming NI credits.

You may be eligible for any time you spent raising children under 12, provided you were registered for child benefit, or were unable to work due to maternity leave, disability or illness.

Registered foster carers, or those caring for a sick person with disabilities for at least 20 hours a week, may also be eligible. The unemployed who are looking for work or claiming jobseekers allowance, or those enrolled on approved full-time training may also claim.

You should get NI credits automatically but some do not. Check by calling the NI helpline on 0300 200 3500 or +44 191 203 7010 if outside the UK.

4. Buy extra qualifying years. If you still have a shortfall, you can make this up by buying voluntary class 3 National Insurance contributions, said Helen Morrissey, senior pension and retirement analyst at Hargreaves Lansdown.

Buying a full extra year will cost £800, but gives you around £250 in extra income for life, paying for itself in just over three years. “You can typically backdate claims for six years,” Morrissey said.

5. Get at least 10 years. You have to have made a minimum 10 years of qualifying National Insurance contributions to get any State Pension at all. If you are just one or two years short, work longer or buy extra qualifying years to make sure you get at least something.

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6. Claim Pension Credit. If you are already over State Pension age and cannot boost your NI record, check whether you are eligible for Pension Credit. This tops up your weekly income to £177.10 if single or £270.30 in joint income if you have a partner. It can also entitle you to other benefits such as help with council tax and a free TV licence for those aged over 75. Yet a third of those who are eligible for Pension Credit fail to claim.

7. Get help. If you are not getting the right pension, contact the Pension Service on 0800 731 7898. Otherwise you can get free help from Government guidance service MoneyHelper.org.uk either online or via its pensions helpline 0800 011 3797. For more help, visit turn2us.org.uk or call 0808 802 2000, or contact your local Citizens Advice.

Sandra Wrench said: “The State Pension is compulsory, you have to pay National Insurance contributions whether you want to or not, so get the most out of it.”

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