State Pension

Talk about moving the goalposts!

Well I know I'm short. As haven't paid NI since I had DD 30 yrs ago as only worked P.T. since and didn't earn enough to pay NI

Ninathenana, I working part-time now as well and don't earn enough to pay NI. I'll have to see if it's worth paying voluntary contributions when I phone them tomorrow.

I m short too as I took time out to bring three kids up without any money from ex so did part time anything I could find nights /early mornings etc etc always worked hard
I manage with what I get

I may be wrong, but I think years when you were claiming Child Benefit count towards your contributions.

Well I had child benefit bu5 my pension isn’t full one
We didn’t get it for first one did we or am I remembering wrong

Lindajane - I’m sure I remember getting a similar letter. I checked up on my state pension situation last year and found that I was short of four years NI contributions. This relates to the four years when the company my husband was working for seconded him to the US and our children and I went to. It was the 80’s, I wasn’t allowed to work in the US and although the company paid my husband’s NI during that time, they didn’t pay mine. I thought having children under 16 meant that I was covered by Home Responsibilites allowance whilst we were away but was wrong. It’s not possible to buy back those 4 years ( too late). I’ve stopped paid employment early to look after my elderly mother and grandchildren so I’m glad I can claim my daughter’s Equivalent of Home Resp allowance to pay my NI contributions for these years or I’d have an even larger shortfall. I’m annoyed that I wasn’t warned about this earlier when I could have done something about it.

Since 1978, you are automatically credited with payments if you are not working because of childcare or other caring commitments. That includes caring for disabled or vulnerable adults.

I returned to work in January 1979 just too late to benefit from this concession.

Yes, I had a similar shock in March when I checked my pension forecast having been told the same 4 or 5 years ago. Since the rules have changed and the state pension age has increased, those like us who now fall short of the minimum contribution years, (providing you’re no longer in employment or receiving any benefits) can make ‘voluntary contributions’ for the number of missing years. Some years have a slightly lower contribution payment, (i.e. £626.60 in 2010/11, and £689 in 2012/13 tax years) so I am able to choose those rather than pay the higher amount of more recent years. It’s interesting to calculate carefully as it’s not always worth making up that shortfall. For example, to pay one year’s contributions (£761.80 for this 2018/19 tax year) may or may not give you that amount back when you compare it to the increase in your existing state pension. HMRC help by showing your current estimated weekly pension which you can compare to the maximum weekly pension you’ll be entitled to if you make up the shortfall. It varies from individual so you can’t compare to a friend or relative, and it’s worth finding out as soon as possible to plan making the extra contributions (assuming those will increase your forecast). I’ve told this to all of my friends who are in a similar age group to me. Many of them who have not paid NI since having children didn’t realise they are eligible for a partial state pension based on them receiving child benefits. I’ve only joined Gransnet today and am so pleased to engage in some helpful and supportive threads.

I'll have to see what they say when I talk to them tomorrow. I work part-time, but not enough to pay NI. I look after my grandchildren 2 days a week and until Jan 2016 helped care for my mum and father-in-law!
Doesn't pay to be a carer that's for sure!

Lindajane that's me well and truly stuffed then - I thought it was 35 years

I discovered too late that apparently my NHS pension was 'contracted out' whatever that means so my state pension will be reduced accordingly. I've no idea what all that means. I get my NHS pension already but will have to wait till I'm 66 for my state OK pension. I'm one of these 'waspi women who lost out with no notice of pension changes or time to make plans.

www.gov.uk/new-state-pension/how-its-calculated
Could some-one advise please. Looking at the above link it seems to state that we must have 35 qualifying years to gain the full state pension. Has there been a change? It would definitely affect me.

Teachers were contracted out of the State SERPS scheme because of the Teachers Pension Scheme -probably something similar. I get my TP and my State pension.

Me too Jane10 calculated they've done me out of £43000 PLUS the NI I'm still paying thats six years worth so well over 15K.My friend who hasn't paid ANY NI since she was 22 insists she'll get a full pension ...I think she might have a wee shock ahead of her .Is there still a pension rate for married couples where the wife never worked?

Yes, there is, but it is a lot less than 2 separate pensions.

Following up Jane10 and Welshwife I believe many of us with public service pensions - like mine from the Scottish Teachers scheme - may find that the eventual state pension is less than expected because of 'contracting out'. Not sure of the details of why, but the state pension forecast does take this into account so it's worth checking in advance of pension date,

Those who were not contracted out in my day did not pay the SERPS part of the State pension. There is a limit to the percentage of earnings you can put into a pension scheme. Anything over that needs to be a savings type scheme -or that is how it used to be.

I have just used the Gov. Web site for Pension Forecast and National Insurance contributions.
I have 38 years so 2 years short

On the National Insurance contributions site it states I can pay a shortfall of £500+ for one year and £700+ for the other year.
However the difference it would make to my pension would be just over £4 per week on todays figures.

On the pension forecast it stated that
on today's figures my yearly pension would be just over £700 per month (8,550 per annum)

But according to the pension forecast I can no longer Add to my pension!
Any further paid National Insurance contributions would be for further NHS
or state benifits???
My pension date has moved from 2019 to 2025.
It also stated on the forecast that this date could change

£50,000+ lost

Cherrytree59 its shocking that the DWP can get away with this ,I'm one of the women who had NO communication from DWP about this and only heard about it through socail media....messed up my retirement plans big time !

The required years of contributions depend on when you were born. My husband and I were both born in 1948 - same school cohort, etc, and you'd have thought the same pension would apply. But some years ago (10?) they reduced the number of years from 40 to 30 for him, but not for me. The cut-off date was the start of the tax year, so as I am January-born, and he was born later in April, the new rules applied only to him. The change was announced only months after he had had to decide whether to pay in a lump sum to make up voluntary contributions, as he didn't start work until 24 and was a few years short. If he had chosen to pay this, it would have been completely wasted, as he already had 30 years' contributions. So I didn't get a full pension but he did.

But for all I know it may have changed again - best to keep checking.

I had to use a financial advisor when I retired as I had four pension funds ( 20 years as a teacher, 9 years of AVCs as a teacher, 8 years with British Gas before my children were born and a stakeholder pension as part of my divorce to cover 8 years when I did not work). He did an amazing job amalgamating two funds and helped me work out a plan for my retirement. His advice re the state pension was to ignore it and regard it as index linking my private pensions when I finally get it! I will get less than the expected amount because my teachers pension was contracted out and I have given up trying to work out what I will get. I have to wait another 5 years until I am 66 and 3 months anyway!

DH worked full time for over 40 years and was "contracted out". I have only worked for a few years having been a full time Mum.
Our state pension forecasts are that am only short one year of contributions, while he will get far less than me!
It's a very odd system.
Everyone should check their entitlement to avoid surprise when the day arrives!

That is weird Pittcity I also was a full time mum and only get pension based on my H's contributions.
You do not get it until your H is getting his own pension.
Currently that is £303 every 4 weeks.
Until recently I had been under the impression that if he died before me, I would get a full pension based on his contributions as I think that used to be the case. However I am now told I won't.