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Legal, pensions and money

Does anyone know anything about the new state pension changes?

(60 Posts)
Maries Sun 08-Dec-13 11:40:57

Alos, I wont be allowed to retire on my 66th birthday - it will be 66 and a bit for me. Its rising incrementally apparently. That is according to the nice lady who I spoke to at the DWP six months ago.

Maries Sun 08-Dec-13 11:38:44

I have to have 35 years of contributions - that is the new rules. I was born after April 5th and its 35 years not 30 years.

I am elegible for the new flatrate pension but I will not have made the necessary number of years contributions, so my pension will be reduced and so I will get £94 . Thats the shortfall.

That of course all assumes I can continue to work until I am 66.

janeainsworth Sun 08-Dec-13 11:17:24

You've lost me Maries.
You say you are nearly 59 and will get your State Pension when you're 66, ie in 2020.
You will have had 32 years of conributions, so why shouldn't you be eligible for the new flat-rate pension, if it comes in in 2016?
BTW the forecast is based on your contributions to date, not the contributions you will have made by the time you reach State Pension age.

Maries Sun 08-Dec-13 11:10:08

In other words, I will get £95 a week - thats what I have been forecast on my NI contributions. I wont get the new flat rate, just a proportion basedon my NI.

As I said, I have a shortfall in NI from the 1980's and so cannot pay it back.

I was one of those who the rules allow to fall through the middle. I was not earning enough to pay HI in the 1980's but on several occassions during that time I was told I didnt need to make the shortfall ( you get five years to pay up) because firstly, I was told it wasnot necessary and then,I was married and so it wasnt necessary and then they changed the rules and moved all the goal posts and it is too late to make it up now.

I am the piggy in the middle of the two systems and nothing then is changing for me. to enable me to move with the changing goal posts.
I suspect there may be more like me though.
Thanks anyway.

janeainsworth Sun 08-Dec-13 09:33:40

maries I've just read an article in yesterday's Telegraph money section.
It also says 'currently, pensioners need 30 years of NI contributions to get the full basic state pension'
It also says
1. You have to reach State Pension age before 2016 to use the top-up scheme.
2. The details are yet to be confirmed.
3. It can be used to top up SERPS or SP2 so your DH might benefit even if you can't.
4.from 2016 new pensioners will receive a flat rate State pension worth £148 in today's prices, so that will apply to you, presumably.
Please note this does not constitute financial advice grin

Maries Sun 08-Dec-13 09:06:23

I was told I needed 35 years the last time I called them - about six months ago - sorry.I sometimes wonder if they know themselves. My birthday it seems falls two weeks too late to get the 30 years settlement.

According to them , if I keepworking until I am 67 I will have the contributions. But I suspect I wont even keepmy present job until I an 66 ( redundancies very year for the last 5 years , I have been lucky so far. Likely I will be asked to go at 60- that seems to be the "age") .I have no other pesnion.

My husband will retire in 2015 ( February) and will be under the old rules. But he has SERPS anyway.

Under the oldrules I cannot pay in additionalNI for the 1980's. I am unlikely to have any shortfall between now and my 66th birthday as I will sign on if I get sacked. Something they wonderful DWP told me I couldnt do in the 1980's as I was co habitting. Funny how times change isnt it?

janeainsworth Sun 08-Dec-13 08:53:32

This website also says you only need 30 years.
www.pensionsadvisoryservice.org.uk/women-and-pensions/women-and-the-state-pension
Hope that helps.
You can email or write to the DWP for a State Pension forecast, to put your mind at rest.

janeainsworth Sun 08-Dec-13 08:50:31

Maries I think the rules have changed and you now need only 30 years' contributions.
https://www.gov.uk/voluntary-national-insurance-contributions

Aka Sun 08-Dec-13 08:48:37

Unlike some government agencies I always found the DWP staff very helpful on the phone. I'd advise giving them a ring and talking it through with them.

Maries Sun 08-Dec-13 08:44:38

Specifically the new rule which allows extra payments to be made to top up state pensions?

I have around 24 years of contributions for NI made so far. I will retire according to the rules at 66 (I am 58/nearly 59 now) so that will give me 32 years of NI. I need 35.

The shortfall goes back to the 1980's when I was not paying contributions . I have no children so NI will not be made up for me with credit. DWP orginally told me I would claim against my husbands pension so I didnt need to worry, but all that changed too.

I would be willing to pay up those missing NI's to get my 35 years in if it were possible. So do those new rules allow me to pay up or not - simply?

I tried the web site but there was nothing there.
I havent been able to get through by phone - engaged all the time.

I understand the "window" for payments will be short.

Thanks for any information.