The state pension and your record

Most countries provide a state or social-security pension funded by contributions made during your working life. It is the foundation of retirement income - and for almost nobody is it sufficient on its own.

How entitlement is built

Entitlement is normally based on qualifying years - years in which you paid social contributions or received credits for them. Credits typically cover periods of caring for children, illness, disability or registered unemployment. A full entitlement usually requires a substantial number of years; a partial record produces a proportionally reduced amount.

The details differ significantly by country, which is why this lesson deals in principles. What is universal is that the record exists, it can have gaps, and gaps are easier to fix while you are still working.

Gaps happen more often than people expect

Common causes: time abroad, self-employment with contributions unpaid or under a threshold, long career breaks, low-paid part-time work below the contribution floor, and periods where credits should have been claimed but were not.

Many systems allow you to fill past gaps by making voluntary contributions, usually within a time limit. Where that option exists it is frequently one of the best-value financial decisions available - but the limits and deadlines are strict.

Two actions worth taking

1. Check your contribution record with your national authority. It is normally free and available online. 2. Check your state pension age. It has risen in most countries and may not be what you assume.

Plan around it, not on it

Treat the state pension as the floor of your retirement income and your workplace or personal pension as the part that determines your standard of living. Then model the gap in the mySal pension projector.