How to check you’re getting the state pension you deserve

It’s easy to assume your state pension will be ready and waiting for you by the time you retire. 

But the truth is, there are caveats which could prevent you from earning the full amount and thousands of people are underpaid each year. In 2023, the Department for Work and Pensions (DWP) admitted six in 100 state pension claims are currently being underpaid.

The state pension system is so complex that errors and missing records are not uncommon – but figuring out if you are being underpaid is essential. Leaving an error unchecked could cost you tens of thousands of pounds over the course of your retirement. 

Here, Telegraph Money reveals how to check if the Government is paying you all of the state pension that you are owed, and what to do if you notice an issue.

How much should my state pension be? 

Your state pension will depend on when you were born and how long you paid National Insurance contributions when you were working. 

Men born before 6 April 1951 and women before 6 April 1953 receive the basic state pension. If you were born after this then you will receive the new state pension, which is higher. 

You should be entitled to a full state pension if you have a track record of around 35 years of National Insurance (NI) contributions. To get anything at all, you need a minimum of 10 years’ worth of contributions. 

For people under the “old” system, this is currently £156.20 per week, which is worth £8,122.40 each year. For the younger cohort of retirees, this is £203.85 per week, or £10,600.20 per year. 

From April, this will rise by 8.5pc to £221.20 per week (£11,502.40 per year). Those who fall under the older age bracket will see their weekly payments rise from £156.20 to £169.50 (£8,814 a year).

If there are gaps in your NI record, your state pension forecast will likely be below the full amount.

This could happen for a range of reasons: if you have taken a career break or worked abroad, for example. Gaps can also arise from earning a low income where you’re not required to pay NICs, or being self-employed and not making adequate contributions. You might also notice gaps if you are a married woman or widow who stopped paying reduced rates of NI, sometimes called the “small stamp”, when they were phased out in 1977. 

Alice Haine, of the broker Bestinvest, said HMRC had already identified several instances where people’s state pension entitlements were incorrect. “This particularly affects married women, widows, divorcees and those aged over 80, with the errors caused by a range of issues – from the complexity of the pension system to IT glitches, or information recorded incorrectly on people’s records,” she said.

“While the Government is working to resolve this, it is always wise to follow up if you feel you have not been notified of a mistake yet or suspect your case has not been identified.”

How to check your state pension entitlement

The first step is to check your state pension forecast. You can do this by visiting the Government website.

If you have gaps in your National Insurance record, then your payment forecast will look smaller. 

Check this website for your National Insurance record for gaps. You will need a Government Gateway user ID and password to gain access to it. 

You can also request a printed National Insurance statement online, by phone or by post if you live abroad. Read the Government guide to calling the helpline.

You can also write to HM Revenue and Customs to request a statement at this address: 

National Insurance contributions and Employers Office, HM Revenue and Customs, BX9 1AN.

I’m being underpaid – what can I do?  

Do not panic if you think your state pension payments are too low – you can work with the Government to fill in gaps in your NI record and boost your pension. There are two main ways to do this: paying voluntary NI contributions and claiming NI credits. 

NI contributions 

If you think there are gaps in your record, you must check to see if paying voluntary contributions is the right route for you, as in some cases they do not always boost your payments and you could be wasting money. 

You can plug gaps by topping up the years or part-years which you’ve missed, dating between 2006 and 2016. 

The deadline for NI catch-up payments for the tax years from 2006-07 to 2015-16 is April 5 2025. There is usually a six-year deadline to fill missed contributions.

To see whether you could boost your state pension payments by making voluntary contributions, check with the Government’s Future Pension Centre. It can be reached on 0800 731 0175, or +44 (0)191 218 3600 if you are calling from outside the UK. The line is open from 8am to 6pm. 

If you’re already claiming the state pension, contact the Pension Service on 0800 731 0469.

If the pension forecast isn’t for the full amount, then making contributions could help you in the long-run. You don’t have to pay to fill all the gaps in one hit. 

To make the payments, you need to contact HMRC to learn the precise cost of the years you want to buy. 

You will then obtain an 18-digit reference number from HMRC – either over the phone or by post. You’ll need this number to process the top-up payments with HMRC. 

Once the payments are confirmed, the extra NI years you’ve bought will be added to your record. 

Is it worth topping up your state pension? 

If you’re close to the state pension age and don’t have 35 full qualifying years of contributions, it’s likely a smart move to top it up.

The standard cost to make up a year of missing NI contributions between 2006 and 2016 is £824.20. Paying this adds up to £302.64 each year to your pre-tax state pension (based on 2023/24 rates) – so as long as you live at little more than 2.5 years after reaching state pension age, you’ll get a financial return. 

It’s especially good value when you think that the state pension rises each year, becoming even more valuable over time. The triple lock, which has been in force since 2011, means it will increase by a minimum of 2.5pc each year.

Some years cost less to top up than others: for example, if you worked part-time and paid some NI, then that would be cheaper to fill than a completely blank year.

If you’re still a long way from reaching state pension age, it likely won’t make much sense to pay voluntary contributions. You cannot get the money back if you overpay and you will likely make up the contributions through work anyway.

You may also find that you can fill in the missing contributions for free with National Insurance credits.

NI credits 

You may also be able to claim NI credits at no cost. You might be able to claim credits for childcare if you are a grandparent or other eligible family member over 16, but under the state pension age. It also applies to circumstances when you have been on jobseeker’s allowance, receiving sick pay or the maternity or paternity allowance, as well as others.

Ms Haine added that people on the basic state pension may also be able to boost their payments if they are married or in a civil partnership or if their partner has died. 

“There is also the option to access the information of someone who has died who may have been underpaid, with their family or heirs potentially eligible for the underpayments,” she said. 

“The Department for Work and Pensions has a dedicated portal for people to access this information, so have the date of birth and death of the person underpaid to hand, as well as the last-known address and the full details of their spouse or civil partner.”

This article was first published on June 3 2023, and has been updated since then.