People told to claim 'full state pension' even if they have 'never worked'

James Rodger
·2-min read

People can claim the full state pension - without ever working. Some people can access the full amount from the Department for Work and Pensions (DWP) without paying this or working in traditional jobs by getting National Insurance credits instead, according to experts.

Stuart Carswell, Independent Financial Adviser and Director at Pareto Financial Planning, explained: "NI credits help non-employed individuals, like carers or parents, qualify for a pension. Without these credits, many would fall short of the necessary years for a full pension."

"NI credits ensure that vulnerable groups, such as caregivers and disabled individuals, are not disadvantaged in retirement. This social protection mechanism reduces poverty risks for those unable to work," Stuart went on to say.

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He said: "Some individuals may not be aware of how to claim NI credits, which could lead to gaps in their record and a reduced pension. This can particularly affect low-income individuals or those with complex personal circumstances."

Your benefits could be affected if there are gaps in your National Insurance record. National Insurance credits can help to avoid gaps in your record and protect your benefits. You can get credits if you cannot pay National Insurance contributions, for example, if you’re unable to work due to illness or you’re caring for someone.

If you’re not working or getting credits you can also top up your National Insurance with voluntary contributions. The class you pay depends on your employment status and how much you earn. If you’re employed then your employer will automatically deduct Class 1 contributions from your pay if you’re both under State Pension age and earning more than £242 a week from one job.

Class 1A and Class 1B are only paid by employers on their employees’ expenses or benefits. If you earn from £123 to £242 a week from one job, you do not usually pay National Insurance but may still qualify for certain benefits and the State Pension.

If you earn less than £123 a week from one job, you can choose to pay voluntary Class 3 contributions to cover gaps in your National Insurance record.

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