3 steps to check your state pension (2024)

Figures from Department for Work and Pensions show more than 2.1m pensioners receive less than £100 per week in State Pension, with women overall likely to receive less than men. But so many of us don't think to check until retirement is in our sights, unaware that there may be steps we could take to ensure we get the maximum amount long before this.

Helen Morrissey, senior pension and retirement analyst at Hargreaves Lansdown says:“We often talk about State Pension in terms of the maximum amount of money you can receive but data shows there are still many who receive far less than this.

"If you have other sources of income in retirement, this many not be an issue, but for many people the State Pension is the backbone of their retirement planning and they could receive a nasty shock if they find they are entitled to less than they thought."

To get a full state pension, you should have paid in at least 35 years' National Insurance contributions (for people reaching state pension age after April 2016). Currently, the state pension stands at £179.60 per week. There are plenty of ways you can boost you pot such as claiming child benefit or specified adult childcare credit.

How to check how much state pension you are on track to get

To make sure you have a sufficient amount to retire on, it's important to know that you're on track. Yet, three million workers are leaving it too late to plan for their retirement, according to research. The Money and Pensions Service (MaPS) found over 37% of over 50s were leaving it to the final two years of their work life to financially plan for retirement, if at all.

“Given over a third of over-50s have had their finances affected by Covid-19 and we’re now facing a recession, we’re urging people not to delay or skip planning their retirement finances – whether you’re thinking of retiring later or bringing it forward. Your pension is likely to be one of the most valuable assets you hold so it’s really important to start planning early to make sure you make the best choices based on your circumstances,’ Carolyn Jones, head of pensions policy and strategy at MaPS, says.

"Getting help and talking through your options now could be the difference between having a comfortable retirement or having to work for longer or adjust to living on a lower income."

3 steps to check your state pension (1)

How much is your pension worth now?

Only 29% of women have a clear idea of what all their pensions are worth (compared with 44% of men) and a worrying 72% of women have no idea of how their pension is performing (compared with 51% of men), according to financial services firm Hargreaves Lansdown. Checking is easy...

Here’s how to check if you’re on track:

You will need:

  • Your National Insurance number. (Find it on your payslips or any official letters about tax, pension or benefits. If you can’t find it you can ring the NI helpline on 0300 200 3500 or fill in an online form).
  • Your annual pension statement (from any/all companies you have a pension with). If you have a sneaking suspicion that you’ve lost track of a pension with a previous employer or opened a personal pension but stopped contributing to it, you can track it down with the government's designated 'find a pension' tool).
  • An hour’s free time (sounds like a lot but this is so worth it!).

Step one

Go to gov.uk/check-state-pension.

This will tell you how much State Pension you could get, at what age and how you might be able to increase it. You’ll have to prove your identity (eg. with a Government Gateway user ID or if you have an account with Gov.UK Verify) or create an account.

Check your National Insurance record at gov.uk/check-national-insurance-record.

This will show you what you’ve paid so far, if you have any gaps and if you can pay voluntary contributions to fill them.

Step two

Look at your pension statements. Your provider should send you an annual pension statement once a year that tells you how much is in your pot and gives an estimate of how much you might get when you start taking your money. Many providers also let you track your pension on their website.

Can’t find the letter? Ring your pension provider or talk to your HR department at work.

3 steps to check your state pension (2)

Step three

With the state pension info and your personal and workplace pension info, you are now ready to get a forecast!

Use the MaPS Pension Calculator to find out what your likely retirement income will be at the age you’ve decided you want to retire.

This clever widget will show you roughly what size of pot you are on track to get and how much annual income you can expect to draw from it.

For many this can be a bit of a crunch moment but at least you can see if there's a shortfall and take steps to improve reduce the shortfall.

Get expert advice

If after doing that, you are feeling a bit panicky, here’s where to find expert advice:

  • Visit MoneyHelper for a wealth of general advice.
  • Talk to your employer’s HR pensions adviser to discuss boosting the amount of your salary you’re contributing to your workplace pension. The minimum contribution you can make will be 5%, and 3% from your employer.
  • If you are 50 or over, you are entitled to one free phone or face to face session with an impartial expert. Visit pensionwise.gov.uk.
  • Find a specialist adviser who is authorised and regulated by the Financial Conduct Authority at unbiased.co.uk or vouchedfor.org. The first meeting is usually free but after this you’ll have to pay a fee for advice.

*Pensioner income figures can be found here DWP benefits statistics: August 2021 - GOV.UK (www.gov.uk)

3 steps to check your state pension (2024)

FAQs

How do I ensure I get full state pension? ›

Qualifying for the full amount

To get the full basic State Pension you need a certain number of qualifying years of National Insurance. If you're a man you usually need: 30 qualifying years if you were born between 1945 and 1951. 44 qualifying years if you were born before 1945.

How many qualifying years do you need for full state pension? ›

You usually need 35 qualifying years of National Insurance contributions to get the full amount. You'll still get something if you have at least 10 qualifying years - these can be before or after April 2016.

How is your pension calculated? ›

Step 1: Divide the pensionable pay you received that year by 49. Step 2: Add that value to your pension account. Step 3: Increase or decrease your pension account in line with the cost of living (Consumer Prices Index (CPI) Step 4: Repeat steps 1- 3 the following year, and every year you are in the pension scheme.

How do you ensure a good pension? ›

Ways to make your pension savings give you more
  1. Increase your savings.
  2. Make sure you claim all your tax relief.
  3. Review the way your pension pot is invested.
  4. Review the charges deducted from your savings.
  5. Consider bringing pension pots together.

Can you collect Social Security and a state pension at the same time? ›

You can retire with Social Security and a pension at the same time, but the Social Security Administration (SSA) might reduce your Social Security benefit if your pension is from a job at which you did not pay Social Security taxes on your wages. There are two different kinds of pensions: covered and noncovered.

Can I run out of pension? ›

How long will my pension last for? Think of your personal pension as a large piggy bank – if you smash it open and spend it all at once, then it'll run out pretty much instantaneously. But if you take your time and only take a little bit from it at a time, then you can make it stretch a lot longer.

How long will my pension last? ›

The State Pension is guaranteed for life. You might also be due pension income from a former employer if you were in a defined benefit pension scheme. This will provide you with a regular income for life. You might have contributed to an employer or private pension scheme where you built up your own pension pot.

What is the average government pension? ›

Retirement income for federal employees, with an average monthly annuity of $5,447 for those under the CSRS and $2,126 under the FERS in fiscal year 2022, is multifaceted and influenced by a variety of factors. These include length of service, pay grade, and the specific retirement system an employee is part of.

How much of my pension can I cash in when I'm 55? ›

Pension release over 55

Once you turn 55, you'll be able to withdraw up to 25% of your pension tax-free from your personal or workplace pensions. And for withdrawals made on the remaining 75% of your pensions, you'll be charged at your normal income tax rate.

What is the best month to retire? ›

December 31. As above, December 31 has the benefit of a full month of income with the pension starting the next day. This is a common date for federal employees, who are the kings and queens of gaming the retirement system. Retiring on December 31 is likely to maximize your unpaid annual leave check.

Is it better to take a lump sum or monthly pension? ›

While a pension annuity offers a fixed monthly income, a lump sum can be used for a range of purposes, including for unexpected medical expenses. If you die early, you can potentially receive more money than you would with regular payments. If invested carefully, a lump sum could also offer a passive income.

Why is my pension so low? ›

If your State Pension forecast's lower than you'd hoped, you can take action by making voluntary contributions to catch up on any 'lost years' on your National Insurance record (which could be caused by parental leave or a period of unemployment), or focus your efforts on boosting your private pensions (like a personal ...

Why do I not get full state pension? ›

With 40 years, the only reason you are not getting the full new state pension is because you have been contracted out. During that time you paid less NI as did your employer. In return your works pension makes up the difference. You can improve your state pension by either paying voluntary NI or getting NI Credits.

Can I take all of my local government pension as a lump sum? ›

You can only choose to swap pension for lump sum when you first take your LGPS pension. You cannot change your decision later.

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