State pension payment you would receive with minimum contributions

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How much their payment is depends on how many years of National Insurance (NI) contributions they have paid. A person typically needs at least 10 years of contributions to get the minimum state pension.

The full basic state pension is currently £141.85 a week while the full new state pension is £185.15 a week, providing an important source of income for many retired Britons.

However, a person will receive less than these amounts if they do not have the full qualifying years to get the full payment.

An individual typically needs 30 years of contributions to get the full basic state pension and 35 years of contributions to get the full new state pension.

Anyone who reaches state pension age after April 6, 2016, will receive the new state pension.

This is how much a person’s payments will be for the new state pension, depending on how many years of NI contributions they have paid in, according to calculations from Money Helper:

  • 35 years gives 35/35 x £185.15 = £185.15 a week
  • 30 years gives 30/35 x £185.15 = £158.70 a week
  • 10 years gives 10/35 x £185.15 = £52.90 a week.

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A person may have gaps in their record because they were employed but has low earnings or were living or working outside the UK for a while.

A person can check how much state pension they are due using a state pension forecast tool on the Government website.

To use the tool, a person will need to use a Government Gateway account. A person can register for an account on the Government website.

The tool will also tell a person if they have the option to top up their state pension by making voluntary NI contributions.

The state pension is increasing by 10.1 percent in April as the triple lock policy has been reinstated.

The policy guarantees the state pension increases each year in line with the highest of 2.5 percent, the rise in average earnings or the rate of inflation.

This will mean the full basic state pension will increase to £156.20 a week while the full new state pension will go up to £203.85 a week.

Becky O’Connor, director of Public Affairs at PensionBee, said Britons face a difficult choice about if they want to retire earlier than when they will receive their state pension.

She told “The state pension delivers a maximum of roughly £10,000 a year. So if you still wanted to retire at 65 but won’t get the state pension until 68, you’d need at least an extra £30,000 in your pension to make up this shortfall.

“The Pensions and Lifetime Savings Association thinks you need around £12,800 a year for a minimum lifestyle in retirement and £23,300 for a moderate one, as a single person, to give you an idea of the total you might need for each year you are retired. You can see the difference the state pension makes to reaching these targets.”

Research from the association found an individual would need some £12,800 a year for a minimum standard of living in retirement.

People planning for a moderate standard of living would need £23,800 a year while those who want enough funds for a comfortable retirement need £37,300 a year.

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