Topping up your State Pension
Find out why you may not get the full amount of State Pension and what to do about it.
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The information provided in this factsheet is intended to provide helpful information but does not constitute financial advice. It should not be treated as a complete and authoritative statement of the law.
Why you might want to top up your State Pension
While your LGPS pension forms a significant part of your retirement planning, you should remember your State Pension.
It's worth considering topping up your State Pension if:
- you are not on track to get the full amount of State Pension
- have already drawn on your State Pension but aren't getting the full amount.
Contact the Department of Work and Pensions if you have questions.
Learn more about the State Pension Scheme.
Before deciding to top up your State Pension or not, consider consulting an independent financial adviser or the Pensions Advisory Service. In the event of any dispute, the appropriate legislation will prevail.
How much you should get
The amount of State Pension you get is based on your record of National Insurance Contributions (NICs).
If you reached State Pension age before 6 April 2016
You need to have completed at least 30 qualifying years of NICs to receive the basic State Pension of £119.30 per week (2016/17 rate).
If you reach State Pension age on or after 6 April 2016
The full amount of the new state pension is £155.65 per week (2016/17 rate). Your past NICs to that date will be used to calculate a ‘starting amount’ for the new state pension.
From 6 April 2016, you may be able to add 1/35 of the full amount to this each year until either:
- you reach the full amount
- your state pension age.
Check your state pension
Visit Check your State Pension forecast to find out what you could get.
If you reached State Pension age before 6 April 2016
Gaps in your NI record may reduce your State Pension. You may be able to pay voluntary Class 3 NICs to fill the gaps and increase your State Pension. You can typically only go back up to six years, but there are
some exceptions. Learn about voluntary National Insurance on the GOV.UK website.
Deferring your State Pension if you reached State Pension age before 6 April 2016
Delaying the date you start taking the State Pension can make a big difference to the level of pension you’ll get.
The rules for people who reach State Pension age before 6 April 2016 are that for every five weeks you delay taking your pension, it increases by 1%. This means that if you defer for at least a year, you’ll get a 10.4% boost to your pension.
Find out how to defer your State Pension on the GOV.UK website.
If you reach State Pension age on or after 6 April 2016
This information is for people who reached State Pension age on or after 6 April 2016. For all other's, view the information for people who reached State Pension age before 6 April 2016.
Gaps in your National Insurance record
If you paid into a ‘contracted out’ pension scheme, such as the LGPS, between 6 April 1978 and 5 April 2016 you'll get less new State Pension. This is because you and your employer paid a lower rate of National Insurance (NI) during this period.
Visit Check your State Pension forecast to find out what you could get.
Just because you can fill gaps in your National Insurance (NI) record, doesn't mean you should. Check if you qualify for NI credits, for example, carers credits. Or, if you don't qualify, check that paying the voluntary NI contributions will increase your State Pension.
Paying voluntary NI contributions before you draw your LGPS pension
Gaps in your NI record may reduce your State Pension. You may be able to pay voluntary Class 3 NICs to fill the gaps and increase your State Pension. You have until 5 April 2023 to pay for any gaps from 2006/07 to 2015/16 tax years. Learn about voluntary National Insurance on the GOV.UK website.
Paying voluntary NI contributions after you draw your LGPS pension
If you reach State Pension age on or after 6 April 2016 and you retire from the LGPS before your State Pension age, it may be worth considering paying voluntary NICs after you retire.
The LGPS was contracted out between 6 April 1978 and 5 April 2016. So, anyone paying into the LGPS during that time was making lower NI contributions, and their State Pension is reduced.
You can pay voluntary Class 3 NICs from 2016/17 up to the financial year before you reach State Pension age. You could increase your State Pension by 1/35 of the full new State Pension rate for each year (up until you reach the full rate). At current rates, this is £155.65 divided by 35 or an extra £4.45 per week.
You typically only have up to six years to pay.
An example of paying voluntary NI contributions after retiring
Frederic was an LGPS member and council worker. He retired from his job on his sixtieth birthday on 6 April 2016 and did not plan to work again.
Frederic can draw a pension from the LGPS at once, but his State Pension will not be payable until he is 66. He does not qualify for any NI credits, so each of the years from 2016/17 to 2021/22 will be gaps in his NI record.
Frederic was a member of the LGPS throughout most of his working life, so he has a deduction to the new State Pension. He will receive a State Pension of £119.30 per week.
Frederic decides that he can afford to set aside a lump sum of £733, which will pay for one year of voluntary NICs (2016/17 rate). He is under State Pension age when he retires, so he doesn't need to pay the voluntary NICs straight away.
He pays the lump sum shortly before he draws his State Pension in 2022. As a result, his State Pension increases by 1/35 of the full flat-rate pension per week – currently £4.45 per week (£231 per year).
Deferring your State Pension if you reach State Pension age on or after 6 April 2016
Delaying the date you start taking the State Pension can make a significant difference to how much you’ll get.
For those who reach State Pension age after 6 April 2016, the new State Pension rules will apply. The rules are that for every nine weeks you delay taking your pension, it increases by 1%. You’ll receive an increase of around 5.8% by delaying for at least a year.
Find out how to defer your State Pension on the GOV.UK website.