State pension: How to get full sum as millions face deductions | Personal Finance | Finance

But even if someone has 35 years of contributions on their National Insurance record, they could still be denied the full state pension due to something called ‘contracting out’.

Contracting out

Being contracted out meant that Britons paid lower National Insurance contributions, and this could result in their state pension being lower when they come to collect.

Contracting out ended in April 2016, with all employees paying the standard National Insurance thereafter, but clearly the old scheme is still having an impact today.

People paid into contracted out pensions with the idea that this would replace part of their state pension, and it is believed millions of workers have paid into a contracted out pension for at least one year.