Sarah Bradford explains how the self-employed can earn entitlement to the state pension and how they can make voluntary contributions to fill gaps in their National Insurance record.
Entitlement to the state pension is contingent on having sufficient qualifying years. An individual needs 35 qualifying years for a full state pension and at least 10 for a reduced state pension. Qualifying years are secured by paying, or being treated as paying, National Insurance contributions (NICs) or by being awarded National Insurance credits.
Employees are able to accumulate qualifying years through the payment of primary (employee’s) Class 1 NICs, while the self-employed are able to earn their state pension entitlement through the payment of Class 2 contributions. Individuals can also pay voluntary Class 3 contributions to top up their National Insurance record.
The payment of employer NICs (secondary Class 1,
