Women State Pensioners Urged to Verify NI Records to Secure Full Entitlement
Women who are approaching State Pension age have been strongly advised to take immediate action to avoid missing out on their full pension amount unnecessarily. A leading personal finance expert has emphasized that now is the critical time for Department for Work and Pensions (DWP) recipients to thoroughly check their National Insurance contributions.
Rising State Pension Claims and Average Payments
Clare Stinton, the financial wellbeing lead at the prominent financial services firm Hargreaves Lansdown, highlighted recent data showing a steady increase in State Pension claims. "Fresh figures released show a steady increase in the number of people claiming the State Pension, with 13.2 million now receiving payments – a rise of 243,000," she stated.
The average weekly payment has also seen a significant climb, reaching £210.73, which marks an increase of £8.78 compared to the previous year. This rise offers retirees a modest yet welcome boost amid the ongoing cost-of-living pressures that many face.
Growth of the New State Pension System
Ms Stinton further noted that the number of individuals claiming the new State Pension is growing rapidly. Currently, five million retirees are receiving payments under this system, representing an increase of 740,000 since August 2024.
She explained that basing entitlement on an individual's National Insurance record has been transformative, particularly for women. "This has been a gamechanger for women, helping to close the historic inequalities embedded in the old State Pension," she remarked.
Disparities in Payments Between Genders
Under the new system, women are experiencing notable benefits. Female recipients now receive an average of £214.41 per week, which is higher than the £194.94 average for women still on the legacy system.
However, this positive trend does not extend to men. "This pattern does not hold for men, whose average payments under the old State Pension remain slightly higher at £225.04 per week, compared to £214.41 under the new State Pension," Ms Stinton added.
Addressing Gaps in National Insurance Records
Ms Stinton emphasized that gaps in National Insurance records do not necessarily mean missing out on money. "Missing years don’t have to mean missing money. You may be able to plug gaps in your NI record through benefit credits," she advised.
She pointed out that some credits, such as those for periods when individuals were eligible for Child Benefit or Carer’s Allowance, should be applied automatically. Therefore, it is crucial to check for any errors in these records.
Voluntary contributions can also play a key role in filling these gaps, and most can be backdated for the previous six tax years, providing a valuable opportunity to secure full pension entitlements.
