There are many benefits to setting up your Personal Tax Account (PTA) and in particular, the ability to check your State Pension position.

You can set up your PTA using this link if you have not already done so https://www.gov.uk/personal-tax-account

The new State Pension came into effect on 6 April 2016 and the new rules apply if you’re:

• a man born on or after 6 April 1951
• a woman born on or after 6 April 1953
   

The full rate of the new State Pension is currently £168.60 per week but the amount you will actually receive is based on your National Insurance (NI) contribution record.

The calculation for your State Pension is complicated however generally speaking:-

• You’ll usually need to have a minimum of 10 qualifying years on your NI record to get any new State Pension
• You may get less than the full rate of the new State Pension if you were contracted out before 6 April 2016
• You may get more than the full rate of the new State Pension if you would have had over a certain amount of Additional State Pension under the old rules
• You’ll need 35 qualifying years to get the full rate of the new State Pension if you do not have a NI record before 6 April 2016

It is therefore important to check your NI record to ensure that you are on track to receive the maximum amount of State Pension.  If there are any gaps in your NI record you may be able to fill them and improve your position.

If you would like to discuss your State Pension position and/or your NI record or require further clarification then please don’t hesitate to contact Luke Mudd at Simpson Wood on 01484 534431.