Millions May Not Know Their State Pension Entitlement

One in eight people surveyed by the UK tax authority have never checked how much money they are forecast to receive when they stop working. The state pension is expected to exceed £13,000 annually for those on the flat-rate system in the coming year.

State Pension Basics

The current flat-rate state pension, for individuals who reached state pension age after April 2016, stands at £241.30 per week, equating to £12,547.60 per year. For those who reached state pension age before April 2016, the old basic state pension is £184.90 per week, or £9,614.80 annually. Many receiving the basic state pension may also be eligible for an additional state pension top-up. The state pension typically increases each year based on inflation, wage growth, or a 2.5% minimum, whichever is highest.

Qualifying for the State Pension

To qualify for the state pension, individuals generally need 35 years of qualifying National Insurance (NI) contributions. Gaps in an NI record can occur due to factors such as living abroad or taking time off work for caregiving, although NI credits are often awarded for receiving child benefit or carer's allowance. Voluntary contributions can be made to bolster one's contribution history, but since April 2025, payments are limited to the previous six years.

Checking Your Entitlement

Individuals can check their projected state pension through the HM Revenue and Customs (HMRC) app or by visiting the official online state pension forecast webpage. Identity verification, typically using official photo ID, is required. HMRC advises caution against clicking on links in unsolicited emails or text messages, which could be fraudulent. The government has also launched a "Tax Confident" website for general information on tax and pensions, and the independent Money Helper website offers a free retirement guidance tool.

Reasons for Not Checking

According to an HMRC survey of 5,000 consumers, the primary reason cited for not checking a state pension forecast is the perception that retirement is too distant. Other common reasons include losing track of pension pots from previous employment and concerns about how career breaks might affect entitlements. Individuals aged 45 to 54 were found to be the most likely demographic to have never checked their forecast. Myrtle Lloyd, HMRC's chief customer officer, encouraged everyone to check their forecast, regardless of how far away retirement may seem, to explore options for boosting their future entitlement.