‘Qualifying years’ credited throughout your working life

The Basic State Pension is a government-administered pension. It is 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.

The full Basic State Pension is £97.65 a week (2010/11). The current state retirement age for men is age 65, and for women it is changing. The state retirement age gradually increases to age 65 for women born between 5 April 1950 and 5 April 1955. This change started on 6 April 2010 and finishes on 5 April 2020.

This also has an effect upon Pension Credit for both men and women, as it moves the Qualifying Age (QA) to 65 over the next ten years from 6 April 2010.

The state retirement age for men and women will change again from 6 April 2024, moving everyone’s retirement age gradually to 66, then in 2034 towards 67 and in 2044 towards 68. The rules for building up your Basic State Pension have also changed for those people retiring after 6 April 2010.

From 6 April 2010, men and women who reach state retirement age now need 30 qualifying years to obtain the maximum Basic State Pension. If you have less than 30 years, you receive a proportion, for example, 15 years equals 50 per cent of the maximum pension.

A qualifying year is a year when you paid enough NICs or were credited with NICs, for example, if you were receiving jobseeker’s allowance or child benefit.

From 6 April 2010 there is now no minimum number of qualifying years. Before this date you were required to have at least 25 per cent of the maximum requirement to qualify for any pension.