The Basic State Pension - Qualifying and Claiming

The basic state pension is a government administered pension based on the number of qualifying years gained through National Insurance Contributions (NICs) you've paid, are treated as having paid or have been credited with throughout your working life.

Qualification For Basic State Pension

If you are entitled, you can gain basic state pension provision when you reach state pension age which is 65 for men and 60 for women (rising from 2010 to 65 for women by 2020).

You qualify by building up enough 'qualifying years' before state pension age. A qualifying year is a tax year in which you have sufficient earnings upon which you have paid, are treated has having paid or have been credited with, NICs.

In 2006-7, you need to have £4,638 or more of such earnings if you are an employee or £4,465 or more if you are self-employed. The number of qualifying years is equal to about 90% of your working life, calculated from the start of the tax year when you reach 16 to the end of the tax year before the one in which you reach state pension age.

If you have not paid enough NICs because you have been looking after children or caring for someone long-term, the number of qualifying years will be reduced. This is known as 'Home Responsibilities Protection'.

If you have been receiving certain benefits such as Jobseeker's Allowance, Carer's Allowance or Incapacity Benefit, you'll have automatically received NICs for the weeks when you've been claiming. More details can be obtained from the National Insurance Contributions Office.

How Much is The Basic State Pension?

In 2006-7, the full basic state pension is £84.25 a week but your individual circumstances may affect the amount you receive. If you don't qualify for the full basic state pension, but have 25% or more of the qualifying years, you'll get a basic weekly state pension between the minimum (£21.06 in 2006-7) and the maximum (£84.25 in 2006-7).

If you have fewer than 25% of the qualifying years, you're not normally entitled to any basic state pension but you can get a non-contributory or 'over 80' pension if you are 80 years of age or more and meet the residency conditions. This is £50.50 a week in 2006-7 and you can get more information from your local pension centre.

If you're aged 60 or over and living in Great Britain, the government's pension credit could top up your weekly income to a guaranteed minimum of £114.05 if you're single and £174.05 if you're a couple. From 2010, the age at which you can get pension credit will gradually increase.

Claiming Your State Pension

The pension service should automatically send you a claim form 4 months before you reach state pension age. If you haven't received this form 3 months before your birthday, you can call the Pension Service and request a form or simply download one from their website, complete it and return it to your local pension centre. You don't have to claim your basic state pension as soon as you reach state pension age. If you wish, you can put off claiming it and get a higher weekly amount later or have the option of a one-off taxable lump sum payment instead.