Full new State Pension – how much could you get and will it be enough?

The State Pension forms the foundation of people’s retirement income. The full new State Pension is currently worth £230.25 per week.

However, not everyone gets the full amount due to gaps in their National Insurance (NI) record because of time spent out of the workplace – for instance, caring for loved ones or working abroad.

Generally, you need 35 years’ worth of NI contributions to receive a full new State Pension.

How to find out how much State Pension you could get?

You can find out how much you’re on track to receive by getting a State Pension forecast.

What can you do if you have National Insurance gaps?

If you do have gaps in your NI record, that means you might not get the full amount, then you can put a plan in place to fill them.

For instance, if during one of these gaps you qualified for a benefit that comes with a voluntary NI contribution, you might be able to backdate a claim and get the credit added to your record for free.

Child Benefit and Universal Credit are some of the most common examples.

You also have the option to pay for voluntary credits to fill the gaps.

You can usually go back six tax years and for each year filled you will get an extra 1/35^th of your State Pension – about £342 per year.

It can be a very cost-effective way of boosting your State Pension. However, before you hand over any money it’s worth checking with the Future Pension Service whether you’ll actually benefit from it as in some cases you might not – for instance if you were contracted out of the State Second Pension.

This article isn’t personal advice. If you’re not sure what’s right for you, ask for financial advice. Remember, pension and tax rules can change, and any benefits depend on individual circumstances. You also can’t access money in a pension until age 55 (rising to 57 in 2028).

What if the State Pension isn’t enough for the retirement you want?

Getting the most from your State Pension is important in building your retirement resilience, but on its own it won’t be enough to give you the retirement income you need.

One of the best ways to help boost your retirement pot is to see what your employer can offer you.

Many will contribute at auto-enrolment minimum levels, but others are willing to pay in more.

Some will operate what’s known as a matching contribution, where they’ll boost their contribution if you boost yours.

This can mean a lot more goes into your pension with only a relatively modest uplift from you.

You can use an online pension calculator to see what you might get – if it’s enough then great, but if not you have time to do something about it.

Along with supplementing your State Pension with any workplace pension, it could be worth thinking about using a private pension too, like the HL Self-Invested Personal Pension (SIPP).

Small actions like upping your pension contributions when you get a pay rise or new job is one way to boost your contributions.

The HL SIPP can help.

You’ll get access to a wide range of investments to pick from, including the HL Ready-Made Pension Plan, and a full range of retirement options.

And as well as getting tax relief, your pension can also grow free from UK income and capital gains tax.

Another key part of your preparation is to make sure you haven’t lost track of any pensions from previous employers.

Start by listing your job history – think about all the places you’ve worked and cross check for any pension gaps. Don’t forget part-time jobs or short stints.

If you have a personal pension and don’t have any paperwork relating to it, check your bank statements which should show who you were making contributions to.

Once you’ve identified any potential missing pensions, here’s how to track them down:

• The government’s Pension Tracing Service – it won’t tell you if you have a pension lurking somewhere, but it will help you track down contact details for pension providers. It’s a good starting point if you remember the company, but not the pension details. You can call the Tracing Service on 0800 731 0175 – Monday to Friday, 10am to 3pm.

• Gretel – a free online service that takes the legwork out of the hunt. Once you register your details, it will continuously check its growing database and alert you if it finds something. And it doesn’t stop at pensions, it’ll uncover other forgotten savings and investment accounts too.

• Reach out to former employers or colleagues – if the company is still in operation, a simple telephone call could unlock the door to your forgotten pension – often the quickest route to finding what’s yours.

Once you’ve got your pensions together, it makes sense to bring them together so you have an overarching view of what you have. This can save you time and administration headaches and can really improve your retirement decision making as you have a proper sense of what you have in total.

However, before you make the decision to consolidate, there are a few things to consider.

For instance, check that you aren’t incurring any expensive exit fees by moving.

You could also potentially miss out on benefits like guaranteed annuity rates if you consolidate.

It’s also worth saying that it rarely makes sense to transfer out of a final salary pension due to the guaranteed income on offer.