State Pension warning to be issued to thousands
The Government has stated that it will send letters to more than 100,000 individuals who may potentially miss out on the new State Pension due to their lack of national insurance contributions (NICs).
A rule change came into effect during April requiring savers to have accrued a minimum of ten years of NICs in order for them to be eligible for the Government’s new State Pension.
A Work and Pensions Select Committee report has claimed that many individuals would have been oblivious to this rule change, and may, in fact, not be entitled to receive a weekly pension payment.
Only those who have made NICs for 35 years will be entitled to the full weekly amount of £155.65. Savers with NICs of between ten and 35 years will be eligible to receive a proportion of this amount.
However, individuals who have made fewer than ten years of NICs will not be entitled to receive any amount.
The Department for Work and Pensions (DWP) has stated that it intends to write to individuals most at risk before the end of 2016.
From 6 April 2016, eligible retirees have been able to claim the new State Pension if:
- they are a man born on or after 6 April 1951
- they are a woman born on or after 6 April 1953.
From 2020, the State Pension age (SPA) will be equalised for men and women, and will be set at 66.
Savers who reached SPA before the introduction of the new State Pension had been able to increase their additional State Pension through the payment of Class 3A voluntary NICs.