The state pension can be a topic which can seem quite confusing for some people. And, with two different types of state pension, as well as a rising state pension age, it can be difficult to know what you should be getting. With the end of the tax year approaching, an increase in the full state pension amount is set to come into effect. So, will you get the maximum rise in state pension come April 6?
Basic state pension
Men born before April 6 1951 and women born before April 6 1953 are able to claim the basic state pension.
At the moment, the most you are able to get stands at £125.95 per week.
Each year, the basic state pension rises on the basis of whichever is higher out of earnings (meaning the average percentage growth in wages), the percentage growth in UK prices as measured by the Consumer Prices Index (CPI), and 2.5 per cent.
This is known as the triple lock guarantee.
On April 6, the full weekly state pension amount will rise by £3.25, to £129.20.
This works out at an additional £169 per year.
However, in order to get the full basic state pension, you’ll need to have 30 years of national insurance contributions.
Should you have gaps in your insurance record, you may be able to make voluntary contributions in order to increase the amount that you get.
If you’re interested in doing this, it’s advisable to contact the government’s Future Pension Centre first, in order to see if you’ll benefit.
The full state pension amount is rising as of April 6, 2019
New state pension
Women born on or after April 6 1953, and men born on or after the same date in 1951, will have to seek the new state pension.
Not only do the rules differ to the basic state pension, but the maximum amount does too.
At the moment, the full new state pension weekly amount is £164.35.
The change on April 6 will see this increase by £4.25 per week – or £221 over the course of the year.
This means that the full amount on this type of state pension will become £168.60 per week.
You can only claim the new state pension once you’ve reached state pension age.
What’s more, you’ll usually need 10 qualifying years on your National Insurance record in order to get any money.
However, these do not need to be consecutive years.
If you do not have a National Insurance record before April 6 2016, then you’ll need 35 qualifying years in order to get the full amount.
In order to find out how much state pension you may get, you can get a state pension statement from the government website.
Then, you can apply for a National Insurance statement from HM Revenue and Customs (HMRC) to check if your record has gaps.
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