Thousands of retirees could miss out on a full year of contributions
Thousands of workers across the UK are discovering that 35 years of National Insurance contributions may not be enough to secure their full state pension when they reach 66.
A quirk in how pension eligibility is calculated means some retirees face waiting up to an additional year before receiving their complete entitlement.
The issue stems from the way qualifying years are counted, leaving many who believed they had met all requirements unable to claim the maximum amount immediately upon reaching state pension age.
This loophole has been described as particularly frustrating for those who have diligently paid into the system throughout their working lives.
The calculation method relies on tax years rather than actual dates of birth, creating unexpected shortfalls for many approaching retirement.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: "There is a frustrating quirk in the way the rules work about how you qualify for a state pension."
She explained that while individuals require a minimum of 10 years' worth of NI contributions to receive any pension, and 35 years for the full amount, the counting method catches people out.
"It's based on tax years, so it counts from the 6 April before you turn 16, to the 5 April before you get to state pension age," Ms Coles said.
Ms Coles added: "You will keep paying National Insurance right up to state pension age, but only the payments up to the previous April count."
This creates a particularly harsh outcome for those with birthdays falling late in the tax year.
Someone born in March, for instance, could contribute 11 months of NI payments in their final year before reaching pension age, yet none of these would count towards their qualifying total.
The most disadvantaged group are individuals whose birthday lands on April 5, who stand to lose an entire year's worth of contributions through no fault of their own.
For those finding themselves short of the required qualifying years, options exist to bridge the gap.
Clare Moffat, pensions and tax expert at Royal London, said: "If you have gaps in your National Insurance record you can usually buy voluntary contributions to fill them."
She added: "Each year you buy could boost your state pension for life, so it's worth checking your state pension forecast in advance."
Voluntary class 3 contributions can be purchased at £17.75 per week to fill any missing years since 2020.
Another strategy involves delaying when you start claiming, with Coles noting that deferring for every nine weeks beyond eligibility adds one to your pension.