That’s a great question, and it’s essential for everyone to understand their potential retirement income. While the £13,000 figure is a good aspiration, it’s important to note that the **current full new State Pension (for 2024/25) is £221.20 per week, which equates to £11,502.40 per year.** So, to reach £13,000 a year, you would need additional income beyond the State Pension alone.
Here’s how to check how much State Pension you’re likely to receive and what steps you can take now:
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### How to Find Out How Much State Pension You’re Likely to Receive
The most definitive way to check your State Pension entitlement is to get a **State Pension Forecast** from the UK government.
**1. Get Your State Pension Forecast Online (Recommended):**
This is the quickest and easiest method.
* **Go to:** [www.gov.uk/check-state-pension](https://www.gov.uk/check-state-pension)
* You’ll need to sign in using your Government Gateway account, or set one up if you don’t have one. This usually involves proving your identity using information like your driving license, passport, or P60.
* Once logged in, you’ll instantly see:
* Your current State Pension age.
* An estimate of how much State Pension you could get each week (and annually).
* The date your State Pension will start.
* How many qualifying years you have on your National Insurance (NI) record.
* Whether you can increase your forecast (e.g., by making voluntary contributions).
**2. Get Your State Pension Forecast by Post:**
If you prefer, or cannot use the online service:
* You can fill out the BR19 application form online and print it, or request one by post.
* The form can be found here: [www.gov.uk/government/publications/application-for-a-state-pension-statement](https://www.gov.uk/government/publications/application-for-a-state-pension-statement)
* Send the completed form to the address provided. It can take several weeks to receive a response.
**3. Get Your State Pension Forecast by Phone:**
You can also contact the Future Pension Centre directly:
* **Telephone:** 0800 731 0175
* **Textphone:** 0800 731 0176
* **Monday to Friday:** 8am to 6pm
* They can provide you with an estimate and answer questions about your NI record.
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### Understanding Your State Pension Forecast
The forecast will tell you:
* **Your State Pension Age:** This is when you’ll be eligible to claim. It’s currently rising and depends on your birth year.
* **Your Estimated State Pension:** This will show the weekly and annual amount you’re on track to receive based on your current National Insurance record.
* **Qualifying Years:** To get the full new State Pension, you generally need **35 qualifying years** of National Insurance contributions or credits. You need a minimum of **10 qualifying years** to get any State Pension.
* **Gaps in Your Record:** The forecast will highlight any years where you didn’t make enough NI contributions.
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### Factors Affecting Your State Pension
* **National Insurance (NI) Contributions:** This is the primary factor. You build up qualifying years by working and paying NI, or by receiving NI credits.
* **NI Credits:** You might get NI credits if you’re unable to work due to illness, unemployment, or if you’re caring for children or a sick person.
* **Contracting Out:** If you were “contracted out” of the Additional State Pension (SERPS or State Second Pension) at any point before April 2016 (e.g., if you had a workplace pension that met certain standards), your State Pension forecast might show a lower initial amount, as you or your employer paid lower NI contributions during that period. The new State Pension system aims to account for this.
* **Living Abroad:** If you lived or worked abroad, it could affect your NI record.
* **State Pension Age:** The age at which you can claim is gradually increasing.
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### What You Can Do About It Now
After checking your forecast, if you find you’re not on track for the full State Pension or want to increase your future income, here’s what you can do:
1. **Check for Missing NI Credits:**
* If you had periods where you were unemployed, sick, or caring for children/adults, you might be entitled to NI credits that you haven’t received. Contact the Future Pension Centre or HMRC to investigate.
2. **Make Voluntary National Insurance Contributions:**
* You can pay voluntary contributions to fill gaps in your NI record. This is known as paying Class 3 contributions.
* **Consider the cost vs. benefit:** Each qualifying year you buy can significantly increase your annual State Pension for life. The cost of a Class 3 year is usually around £824 (for 2024/25), which adds £329.00 a year to your State Pension. This can be a very cost-effective way to boost your retirement income.
* **Deadline:** You can usually only pay voluntary contributions for the past six tax years. However, there’s a special extension in place allowing people to pay voluntary contributions all the way back to **2006/07** until **April 2025**. This is a significant opportunity if you have older gaps.
* **How to do it:** Contact the Future Pension Centre first to confirm which years it’s beneficial to pay for and how much it will cost.
3. **Continue Working (and Paying NI):**
* If you’re still working, ensure you’re paying sufficient NI contributions each year to build up your qualifying years.
4. **Review Your Employment History:**
* If you believe there are errors in your NI record (e.g., periods when you were working and paying NI but it’s not showing), contact HMRC to get it corrected.
5. **Start or Increase Private/Workplace Pension Contributions:**
* The State Pension is designed as a foundation. To reach or exceed the £13,000 target and ensure a comfortable retirement, you will almost certainly need additional income from private pensions, workplace pensions, savings, or investments.
* **Workplace Pensions:** If you’re employed, you’re likely to be auto-enrolled into a workplace pension. Make sure you’re contributing, and consider increasing your contributions if you can afford it, especially if your employer matches them.
* **Private Pensions:** If you’re self-employed or want to supplement your workplace pension, consider a private pension (e.g., a Self-Invested Personal Pension – SIPP).
6. **Seek Financial Advice:**
* A qualified financial advisor can help you understand your overall financial picture, review your State Pension forecast, and create a comprehensive retirement plan tailored to your goals.
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By taking these steps, you can get a clear picture of your likely State Pension income and take proactive measures to ensure you have the retirement income you desire.
