When do I qualify for UK state pension?
Many people think about their pension and some make private investments in different funds to secure sufficient earnings for retirement.
But for those who can't invest in luxurious pensions the fundamental question is: what is the minimum earning that I need in order to be qualified for state pension?
The U.K. Government recognises, for every taxpayer, a state pension of £159.55/week for fiscal year 2017/2018. However this is not assigned automatically to everyone.
In order to be qualified for state pension your minimum earnings for a tax year (based on the 2017/18 threshold) should be at or above £113/week (lower earnings limit), therefore above £5,876/year.
As a professional accountant my recommendation is to make sure you earn a minimum of £157/week (primary threshold) therefore £8,164/year, in order to be on the safe side.
For taxpayers earning the amounts stated above, you will pay, for minimum 10 tax years, some NIC which is a prerequisite in order to qualify for state pension.
To recap, if you want to benefit from state pension I recommend the following two points:
• Get your personal emoluments at or above £157/week, i.e. £8,164/year • Pay NIC on your earnings every year, for minimum 10 tax years.
I hope you find this information helpful, and good luck!