DWP state pension warning as thousands face £60 monthly shortfall

People are being urged to check if they can boost their state pension as the average payout is currently more than £725 a year less than the full amount. Figures from the Department for Work and Pensions (DWP) reveal that the average full state pension payout for men is £209.49 a week, while women receive on average £205 a week.

Using an average of these two amounts, at £207.25 a week, this is £13.95 a week below the full new state pension of £221.20, a shortfall of £60.45 a month or £725.40 a year. To get the full new state pension, you typically need 35 years of National Insurance (NI) contributions.

The issue is becoming an increasing conern as the number of people on the new state pension rose by 730,000 over the year to May 2024, an increase of over a fifth. Those on the pre-1026 basic state pension usually receive more than the current full basic state pension amount, which stands at £169.50 a week.

Male claimants receive on average £217.15 a week, while women get £186.03 a week. This is due to additional payments some individuals receive as part of the old scheme, such as through the state earnings-related pension scheme (SERPS).

Now is a good time to consider making voluntary NI contributions towards your state pension as you can do so over an extended period. Typically, you can only buy contributions up to six years ago, but this is currently extended by another 10 years, going back as far as the 2006/2007 tax year.

You can check for any gaps in your National Insurance record by viewing your record on the Government website. Additionally, you can find out how much state pension you are set to receive using the state pension forecast tool, which shows if you can increase the amount by topping up.

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