Taking action now can significantly enhance your future financial security
For many in the UK, the State Pension remains a vital component of retirement planning, providing a financial foundation in later years. Alongside workplace or private pensions, it provides income essential for maintaining the lifestyle you envisage after retirement. Currently, the full rate of the new State Pension for the 2025/26 tax year is £230.25 a week, which totals nearly £12,000 annually.
This amount increases each year through the ‘triple lock’ system, which considers earnings, inflation or 2.5%, whichever is highest. Even those with private pensions often rely on the State Pension for extra security. For couples where both partners are eligible, the impact is even greater, potentially making a significant contribution to household finances.
Your entitlement depends on key factors
However, not everyone receives the full State Pension. Factors such as whether you were contracted out of the additional State Pension before 2016, whether you paid into the additional State Pension scheme and the number of qualifying National Insurance (NI) years all affect your entitlement.
To secure the full amount, you need at least 35 years of NI contributions. If your contributions are between 10 and 34 years, you will receive a proportion. There are many reasons why people might not meet the threshold, such as taking a career break to care for children or working abroad. The good news is that you can make voluntary payments to replace missing contributions.
Filling the gaps in your contribution history
Voluntary NI contributions help you fill gaps and boost your State Pension. For the 2025/26 tax year, the cost to fill one missing year is £923. Paying even for one gap can bring significant benefits; it usually increases your annual State Pension by 1/35th of the full amount. This roughly equals £342 per year based on current figures.
Generally, you can only fill gaps from the past six years. For example, in the 2025/26 tax year, you could address gaps dating back to the 2019/20 tax year. Before making any payments, it’s important to check whether you are eligible and if it is financially sensible.
Checking your State Pension forecast
The initial step to understanding your entitlement is to obtain a State Pension forecast. You can do this quickly and easily online via the Government Gateway. Your forecast will display your expected pension, any shortfalls in your contributions and the cost of making up these shortfalls.
Some people may mistakenly assume they will automatically receive the full amount or forget to check their forecast altogether. Overlooking it can result in receiving less financial support than expected. This mistake is especially common among parents who have taken time off work to raise children, believing their NI contributions are being credited automatically.
Unclaimed credits for stay-at-home parents
From 1978/79 to 2009/10, stay-at-home parents could benefit from Home Responsibilities Protection (HRP) if they claimed Child Benefit. This scheme was replaced in 2010/11 by National Insurance credits. Unfortunately, data inaccuracies have led to many eligible parents not receiving the necessary credits.
The Department for Work and Pensions (DWP) identified this issue through research carried out in 2011 and 2022. If you were a stay-at-home parent during this period and missed your credits, the government has announced plans to address the problem. Starting in April 2026, parents will have the opportunity to claim NICs even if they did not previously apply for Child Benefit.
Protecting spouse contributions in high-income households
Spouses in households with a high-income earner might choose not to claim Child Benefit due to tax implications. However, claiming this benefit is important to ensure their NI credits, and there is the choice of not receiving the actual child benefit payments. This highlights the importance of reviewing your pension forecast, especially if your family includes a stay-at-home parent.
The legislative updates in April 2026 are vital for couples in this situation. By claiming missed credits, individuals can protect their rightful State Pension entitlements, preventing financial shortfalls in retirement.
Taking a more holistic approach to retirement
Although the State Pension alone might not provide enough income for some, maximising your entitlement is a vital part of broader retirement planning. Combining the State Pension with workplace or private schemes creates a stronger financial safety net. By addressing any gaps early and utilising mechanisms like voluntary NI contributions, you can achieve greater peace of mind as you approach retirement.
This article does not constitute tax, legal or financial advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional advice. A pension is a long-term investment not normally accessible until age 55 (57 from april 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available.