State pension calculator works out how much you are due in retirement

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People should check whether they have enough National Insurance (NI) contributions to qualify for the full state pension before April 2023 when the rules change. Checking now could save people thousands of pounds when they retire, but they’ll need to act fast before the deadline.

Britons are usually only entitled to the full new state pension if they have 35 years’ NI contributions and are being urged to go online and check before things change in April.

People can pay to fill in any gaps before the deadline – and although it will cost them £800  – it could save them thousands of pounds in the long run.

MoneySavingExpert founder Martin Lewis is just one expert who has recently advised everyone aged 45 to 70 to check their NI records as it could prove costly if they don’t act quickly.

It takes just a few minutes to use the Check Your State Pension forecast calculator on GOV.UK.

The age at which Britons can start taking their state pension is set to rise in the next few years.

While the current age people can claim the state pension is 66 for both men and women it’s due to rise to 67 by 2028 and could increase again in the future.

At the moment, the maximum amount that people can receive is just over £9,600 a year.

However, in April 2023, this figure is going up to £10,600 over the year, which works out at £204 a week.

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There is still time to make voluntary contributuons before the April 2023 deadline when this will no longer be allowed. Typically, there are three ways people can earn NI contributions:

  • Through employment or self-employment
  • National Insurance credits
  • Voluntary contributions.

While it will cost people to make voluntary contributions now, it could add up to thousands of pounds when someone retires.

It’s also important to make sure a common Child Benefit mistake doesn’t affect your state pension entitlement.

Britons are being warned to take out extra care when it comes to filling out Child Benefit forms as it could destroy their entitlement to the state pension.

Some 200,000 parents apply for Child Benefit in the wrong parent’s name every year which could cost them their full state pension when they retire as they won’t have enough NI contributions.

The parent who isn’t working should enter their details on Child Benefit forms so they don’t lose out on National Insurance credits.

This ensures stay-at-home parents still receive National Insurance credits towards their state pension if they take a few years out of the office to look after children.

Meanwhile, the tax-free amount people can put into their pensions each year could be raised from £40,000 in an attempt to stop over-50s from taking early retirement.

The annual allowance currently stands at £40,000 but this leads to some professionals – including NHS doctors – choosing to retire early rather than have to pay income tax on their pension pot.

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