Just over half of state pension recipients receive full amount

Just over half (1,737,342) of the 3,407,567 people receiving the new state pension got the full weekly amount of £203.85 in 2023, analysis from Royal London has revealed.

Data from the Department for Work and Pensions (DWP), analysed by Royal London, showed that, "worryingly", 150,000 pensioners are receiving a state pension of less than £100 a week, or £5,200 a year, which is less than half the full new state pension.

In addition to this, more than 17,000 pensioners are receiving a state pension of less than £20 a week, while 5,677 people were receiving less than £10 a week.

To get the full new state pension, people reaching state pension age from April 6 2016, need to have paid, or been credited with, 35 years of full national insurance contributions (NICs).

However, those with fewer than 35 ‘qualifying’ years get a proportionately smaller state pension, with some missing out on the full state pension due to gaps in their national insurance record or having been ‘contracted out’ and paid lower national insurance.

Whilst some may have other sources of income after they’ve retired, such as a workplace or private pension, Royal London's research found that one in five people aged 66 or over were living on the state pension alone.

Given this, the group stressed the need for savers to check their state pension forecast online to see if they have gaps in their national insurance record.

Royal London consumer finance specialist, Sarah Pennells, said: “We often talk about the full state pension amount, but these figures show how many pensioners are getting only a fraction of that.

“The good news is that, even if you have gaps in your National Insurance record going back over a decade or more, it may still be possible to top up your NICs and increase the amount of state pension you’re entitled to."

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