Qualifying year for state pension purposes

Produced by Tolley
Qualifying year for state pension purposes

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Qualifying year for state pension purposes
  • Why is this important?
  • State pension age
  • How many qualifying years are needed?
  • What is a qualifying year?
  • Pay sufficient NIC
  • Receive NIC credits
  • How to identify a deficient year
  • HMRC deficiency notice
  • Pension forecast
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant tax changes associated with Brexit began to take effect. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit ― personal and employment tax implications guidance note.

Why is this important?

In order to get a full basic state pension, an individual must have paid sufficient national insurance contributions (NIC) for a minimum number of qualifying years in his working life. As NIC cannot be paid in the tax year before the individual reaches the age of 16, or in a tax year after state pension age is achieved, those ages define the period of working life for NIC purposes.

State pension age

The age at which individuals are entitled to a state pension is gradually increasing.

For men born before 6 December 1953 (accelerated from the previous date of 6 April 1959), the state pension age is 65 years. For those born after this date, the state pension age increases in tranches, reaching 68 years for those born after 6 April 1978.

For women born after 6 April 1950, the state pension age has increased gradually from 60 years until it reached 65 years for those born between 6 November 1953 and 5 December 1953. From then on, the state pension age for a woman is aligned to that of a man and so will eventually reach 68 years for those born after 6 April 1978.

There is a state pension age calculator on the GOV.UK website.

There is a statutory requirement for the state pension age to be reviewed at least every six years. The first such review was published in March 2017.

In the July 2017 response to the Cridland review, the Government proposed that the state pension age

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