NI errors, retiring before 2016 and more reasons you might be owed more State Pension cash

A series of errors means many people have been underpaid their State Pensions. Here we look at six reasons why you might be owed pension cash.

Government mistakes over the years mean that hundreds of thousands of people may have been underpaid their State Pension.

Women are the most likely to have been affected by these errors that have been under investigation by the Department of Work and Pensions since 2021.

But while many will automatically receive backdated payments, this isn’t guaranteed, according to Alice Haine, personal finance analyst at Evelyn Partners.

“Some may have more than one reason why they might be missing out, so it is worth contacting the Pensions Service with any questions you have,” she said.

So, what are the main reasons why you may be out of pocket? 

1. National Insurance errors

There may be errors on your national insurance records that mean you get less than you are entitled to, according to Helen Morrissey, head of retirement analysis at Hargreaves Lansdown.

“It’s important to get a State Pension forecast and check if you have any gaps so you can get them amended before you hit State Pension age,” she said.

2. Taking time off for childcare between 1978 and 2010

Parents and carers who claimed Home Responsibilities Protection may have been underpaid State Pension due to missing information on their NI record. It's understood that thousands could have also missed out due to computer errors.

“This could have come about from something as simple as not including their NI number on the initial claim form,” said Helen Morrissey.

“The potentially affected group will have claimed HRP between 1978-2010.”

3. Women who reached State Pension age before 2016

Anyone who reached the State Pension age before April 2016 could be affected, according to Alice Haine at Evelyn Partners.

“If their payments are less than 60% of what their husband receives on his basic State Pension, they may find they are entitled to an uplift, particularly if their husband turned 65 before March 17, 2008,” she explained.

Before 2016, married women, many of whom didn't work, were entitled to a proportion of their husband's State Pension. However, this hasn't always happened.

4. Women who divorced after the State Pension age

Women who divorced their husbands after reaching State Pension age should also check they haven’t been short-changed.

“Provided they did not remarry, their State Pension could factor in her former spouse’s contributions until the point they divorced,” said Alice Haine.

Divorced men relying on the State Pensions of their wives could also be affected, although this is understood to be less common.

5. Widows whose husbands died after March 17, 2008

Alice Haine at Evelyn Partners also advises widows who didn’t receive a State Pension review when their husbands died – particularly if it happened after March 17, 2008 – should explore their options. 

“They may have potentially missed out on inheriting an uplift in their State Pension that is dependent on their late husband’s contribution record,” she explained.

6. Anyone over 80-years-old

Thousands of older women may have also suffered a significant shortfall, according to Helen Morrissey of Hargreaves Lansdown.

“There are cases of people over the age of 80 who were receiving less than £85 per week in State Pension that should have had their pension increased but didn’t,” she said.

Anyone aged over 80 is entitled to £101.55 a week in State Pension this tax year regardless of their NI record, though they do need to meet a stipulated residency test. 

What should you do next?

The DWP is undertaking a huge exercise to identify those affected so it may take some time, pointed out Morrissey. "If you think you may have been underpaid then you can contact the Pension Service," she said.

You can contact the Pension Service, Mondays to Fridays, between 8 am and 6 pm.