snikpoh

Can't find an existing thread on this so I thought I'd start a new one (mods please add this to an existing one if it exists).


With the proposed changes it seems that the pension will go up to £144/week but you will need 35 years contributions and not the 30 required at the moment.

In my particular case, I stopped work in 2006 with only 29 years of contributions. I was just about to pay for the extra year (it must be done this year as there is a 6 year limit) but am now concerned that I will actually need to make up a shortfall of 6 years!

My problem is that I will be outside of the 6 year limit (to make up this shortfall) - also, as far as I can see, even with the proposed extension to this limit, I won't be able to make up the shortfall.

Does anyone know more about this problem? Can any one help?

Bang goes all the planning that we had done .....

notacontrathinker

Try this, It's the UK State Pensions Calculator.

https://www.gov.uk/calculate-state-pension

cymruambyth

Can't you just pay voluntary NI contributions for the next six years to make up the shortfall? Doesn't have to be back dated (although the previous 6 years might be cheaper than the coming six years)?

http://www.hmrc.gov.uk/ni/volcontr/abroad.htm

bobd22

Beat me to it I was going to suggest that as I only looked last night for my wife it seems if you are short it is £740 per year. As for best laid plans, tell me about it. We bought our little house 5 1/2 years ago. Then my wife would get her pension at age 60 when I would be 64 (she would easily have her full 30 years contribution) by then. In that time she will now be 66 years old when she gets her pension and is now unsure if she has the required 35 years contributions. I get mine at 65 and 5 months had I been born 1 day earlier I would get it on my 65th birthday. The government tell us to plan for retirement ! errrr we thought we had but they move he goal posts at such short notice, I have a name for them but wont put it in print.

notacontrathinker

I have 30 years contributions (including 3 years full-time in education from age 16) and will be eligible for a state pension at age 65 under the single tier system.

As I read it, I will receive 30/35 times £144 = £123.43 per week.

This is higher than the £110 I would receive now under the old system.

The qualifying number of years for the single tier pension hasn't been set yet but will be between 7 and 10 years.

So for your 29 years you should get 29/35 times £144 = 119.31 per week.

Topping up by an extra year should get you £214 a year more.

https://www.gov.uk/government/public...-for-saving--2

"If you contribute entirely to the new single-tier scheme, it will replace today’s complicated state pension with a single amount based on 35 qualifying years of National Insurance contributions. If you have fewer than 35 years when you reach State Pension age you will get a pro-rata amount. However, you will need to have a minimum number of qualifying years when you reach State Pension age (this will be set between 7 and 10 years), otherwise you will not get a single-tier pension."

bobd22

Of course under the current system someone may also get extra via SERP's but under the single tier system no one gets anything for SERP's should they have paid into them.

bobd22

One other thing I found strange re the You Gov site, when you use the pension calculator it asks how many years NI contributions you have made since age 19? but if you have worked you have paid NI since age 16 surely you don't lose 3 years contributions?

jennieJ

I've got a feeling anything under 18 doesn't count for some reason, but I couldn't point you to where that is written down unfortunately.

notacontrathinker

Question 7 covers it -

7 How many years between age 16 and 19 were you working, in full-time education, or getting unemployment, sickness or disability benefits?

bobd22

Thanks yes just checked and realised that as I tested on my contributions having over 30 years didn't get q7, tried it with only 25 years over 19 and get asked q7. I thought it was strange and that may well help my wife out.

notacontrathinker

So it only works out if you have the required 30 years for a maximum pension under the present system then stops, and is useless for calculating a future pension under the single tier system. Not surprising, really, as I don't think it's gone through Parliament yet.

bobd22

Yes that's correct the calculator is still based on the old 30 year contribution rule but does take into account the new retirement ages. My wife has sent off for a new forecast to see how much longer she needs to work to ensure she gets full pension allbeit at age 66, however I fear they wont be able to tell her as it will no doubt calculate it on 30 year rule so show her having enough contributions. They say plan for retirement but how is another matter.

bobd22

One other change as well those that have been contracted out and in a final salary pension will not get the full single tier pension as they have paid less NI as a result of being contracted out. Even though of course in many cases they have paid NI for over 40 years but that doesn't count! http://www.bbc.co.uk/news/business-21017013 This is mentioned in this link towards the end.
Oh yes of course but if you manage to not work and get benefit for 35 years hence never paying any NI guess what you get the full amount!

notacontrathinker

I can understand the logic behind that, because I haven't paid anything into the second state pension scheme and the government have paid into my private pension. However I haven't seen or heard by how much the pension will be reduced by for being contracted out.

Bit academic at the moment wondering how the pension changes are going to affect our planned Spanish life style (keeping the thread legal), that is until we see how many coach loads of working Bulgarians and Romanians they ship into the old country to pay tax for our pensions.

EMR

Raising the pension ages is not just a UK issue 67 will eventually become the universal retirement age.
I contnue to pay the min NI with additional charges payments made each year depending on my tax bill ( self employed ).
I am surprised that no expat has commented on the loss of a spouses pension if they have not lived in or contributed to the UK NI system.