Millions of pensioners across the UK are set to receive a significant income boost next year, with State Pension payments expected to increase by 4.8% from April 2026.
The maximum New State Pension will rise from £230.25 to £241.30 per week, while the pre-2016 Basic State Pension increases from £176.45 to £184.90 weekly. However, many recipients receive less than these maximum amounts due to gaps in their National Insurance records.
Understanding National Insurance and Your Pension
Your State Pension entitlement directly depends on your National Insurance contribution history. With over 13 million people currently receiving State Pension, including 4.7 million on the New State Pension introduced in April 2016, understanding these rules has never been more crucial.
The average weekly State Pension payment currently stands at £202.62, though this varies significantly by age group. Those over 90 receive the highest average at £213.79 per week.
New State Pension vs Basic State Pension Rules
For those reaching State Pension age on or after April 6, 2016, the rules are clear: you need 35 qualifying years to receive the full amount, with at least 10 years required to get any pension at all.
Partial pensions are calculated proportionally. For example, someone with 28 qualifying years would receive approximately £184.20 weekly based on current rates.
The older Basic State Pension system has different requirements depending on your birth year and gender. Men born between 1945 and 1951 typically need 30 qualifying years, while women born before 1950 require 39 years.
How to Fill Gaps in Your National Insurance Record
Many people have missing National Insurance years due to career breaks, living abroad, low income periods, or not claiming credits during illness or caring responsibilities.
The good news is that you can buy missing years through voluntary Class 3 contributions. Currently costing £907 per year for the 2023/2024 and 2024/2025 tax years, each purchased year adds approximately £342 annually to your State Pension.
This investment can dramatically boost your retirement income, with some people increasing their projected pension by more than £50,000 over their retirement by purchasing up to six missing years.
You can check your State Pension forecast using the official Government calculator and explore whether buying missing years makes financial sense for your circumstances.
State Pension Deferral: Is Waiting Worth It?
Another option to increase your payments is deferring your State Pension. For every nine weeks you delay claiming, your pension increases by 1%, equivalent to approximately 5.8% per year.
For someone due £230.25 weekly, deferring for one year would increase their payment to around £243.60 weekly, providing nearly £700 extra annually. However, these increased payments are taxable, and the strategy only pays off if you live long enough to recoup the missed payments.
If your pension forecast remains low even after exploring these options, you might be eligible for Pension Credit to top up your income once you reach State Pension age.
