State Pension Question

[disney1st timer]

So many were really helpful on the recent pension thread that I wondered if anyone could help advise on a query regarding my mums entitlement to a state pension. She’s on her own so isn’t sure what she can do and I’ve told her to call but she’s the kind of person that buries her head in the sand so I wouldn’t be surprised if she doesn’t...

Anyway, she is 62 and can claim her state pension from October 2025. She has logged on to the government gateway and it confirms this. However, she has 43 years of national insurance contributions and it’s showing that in 1980 and 1981 she didn’t pay the full contributions and she therefore owes another 5 years of NI contributions to be entitled to her state pension. As she only has 4 years until her retirement age (66) what does that mean for her receiving her state pension? Will she need to work an extra year to be entitled to it? It’s not really clear on the website and now she’s panicking as she didn’t even know she didn’t pay full contributions back in the 80’s.

[dizzy1]

It's my understanding that you need 35 years of contributions to qualify for a full state pension. I am not knowledgeable or qualified in any way, so you need to check this with someone who knows what they're talking about. I'm sure there are Dibbers who can expand on this, and point you in the right direction to check the facts.

[Nannad]

Sorry , I don’t know much, but in 1980/81, if she was caring for children/or a relative she can claim NI contributions, I am not an expert, and am sure a more qualified person will be along soon.😀

[tspill]

Given that she had so many years up to 2016, it is unlikely that the missing years will make any difference. But it will depend on whether she was paying SERPS at the time, it might.

The 35 years thing is irrelevant for most but the youngest.

All our "old" SP were frozen on 2016. Each of our SPs were values under old and new scheme and frozen at the higher. For those contracted out - this would have been at the basic state pension os £119 (I think). For those with SERPS, it may have been higher.
Following April 2016, there has been an opportunity to add to this - which is what you are seeing.

Without you actually posting all the details it is impossible to tell exactly what is going on.

[Mel49]

If she logs back into the Government Gateway there is a section where you can see the anticipated State Pension amount which may help her confirm the situation. Also there is an option to pay an extra payment to make your National Insurance up to a full year if necessary and it quotes the amount needed.

I was on recently to check out my anticipated state pension and was pleasantly surprised that I could make a small payment for 2 different years to make it up to an anticipated full pension.

[disney332]

Just to clarify, if it helps...

Sorry, deleted this.

Brain hurts

Disney332

[123]

Is the state pension going to be her only income or does she have a private pension (or large savings) as well

If it is her only income source, look into pension credits as well.

My mum (is on the old pension scheme) so gets about £130 a week (where as the same record on the new scheme would give her £175).

As it's her only income she applied for pension credits and these bump the amount paid up to the £170+ level of the new pension

[DisneyCupcake]

Originally Posted by Mel49

If she logs back into the Government Gateway there is a section where you can see the anticipated State Pension amount which may help her confirm the situation. Also there is an option to pay an extra payment to make your National Insurance up to a full year if necessary and it quotes the amount needed.

I was on recently to check out my anticipated state pension and was pleasantly surprised that I could make a small payment for 2 different years to make it up to an anticipated full pension.

See more...

I helped someone recently with their application after they received their invitation letter and they were shocked at the amount that they would have to pay as VC's to get a full pension - around £4k. They had 38 years of contributions most of which were before 2016. They decided to apply for the amount that they are entitled to as stated on their letter because for their circumstances they would not get the full benefit of paying the £4k. Everyone's contribution record is dfferent so it is worth keeping an eye on the forecast - it isn't an exciting subject but might prevent distress later on.

[THE WIZARD]

Give them a ring they are so helpful & will give you/your mum all the help & advice she needs. She may not need to pay as much extra to catch up either. When I rang them regarding DH upcoming pension he needed a couple of extra years but, although they would not actually advise what to do, they did point out things that meant it was not worth paying a certain year as it would be of no advantage to him to do so.

[Mel49]

Originally Posted by DisneyCupcake

I helped someone recently with their application after they received their invitation letter and they were shocked at the amount that they would have to pay as VC's to get a full pension - around £4k. They had 38 years of contributions most of which were before 2016. They decided to apply for the amount that they are entitled to as stated on their letter because for their circumstances they would not get the full benefit of paying the £4k. Everyone's contribution record is dfferent so it is worth keeping an eye on the forecast - it isn't an exciting subject but might prevent distress later on.

See more...

Mine was about £100 for one year and £400 for the other so will probably be worth me paying. I'm going to leave it a little longer as hoping to get a job again after lockdown and if I do will have time to try and build up another 2 full years. I've put it in my diary to remind me to check it every year.