State pension rules explained including people who can claim without working

The new state pension, which has been in place since 2016, only has a handful of eligibility requirements for people to claim their entitlements in retirement. Specifically, they must be a man born on or after 6 April 1951 or a woman born on or after 6 April 1953 and possess a minimum of 10 qualifying years to receive a portion of the state pension and 35 to secure the full £230.21 per week.

A qualifying year is typically defined as a complete year during which a person contributed National Insurance throughout their career, whether self-employed or otherwise. People can also choose to make voluntary National Insurance payments if they fall just short of the 10 years required to receive some pension and the 35 years needed to obtain the full state pension. Nevertheless, some people can access the complete amount without making these payments or working in conventional employment by receiving National Insurance credits instead, reports Birmingham Live.

Independent Financial Adviser and Director at Pareto Financial Planning, Stuart Carswell, explained: "NI credits help non-employed individuals, like carers or parents, qualify for a pension. Without these credits, many would fall short of the necessary years for a full pension.

"NI credits ensure that vulnerable groups, such as caregivers and disabled individuals, are not disadvantaged in retirement. This social protection mechanism reduces poverty risks for those unable to work."

National Insurance credits are accessible to a broad range of individuals including those receiving particular benefits such as Jobseeker's Allowance, Child Benefit or Carer's Allowance.

Likewise, individuals serving on jury duty who aren't self-employed, spouses of armed forces personnel or someone who was wrongfully imprisoned may also qualify to make a claim.

The specialist cautioned: "Some individuals may not be aware of how to claim NI credits, which could lead to gaps in their record and a reduced pension. This can particularly affect low-income individuals or those with complex personal circumstances."

The method for claiming National Insurance credits varies significantly depending on your eligibility criteria.

For instance, individuals who were wrongfully imprisoned must correspond with HMRC in writing, whilst those receiving Employment and Support Allowance must follow different protocols.

For comprehensive information on checking your National Insurance record and making claims, visit the government website.

It also provides details of a helpline and guidance on when to contact them.