Unable to understand why I don’t get a full pension....

Also ... my birthday is on 1 April and I'm not allowed to make voluntary contributions for the five days until 5 April (end of the tax year). Therefore, my final (almost) year won't count. I had a long conversation with the Pensions Service about it.

growstuff

Also ... my birthday is on 1 April and I'm not allowed to make voluntary contributions for the five days until 5 April (end of the tax year). Therefore, my final (almost) year won't count. I had a long conversation with the Pensions Service about it.

That is most unfair!

Is there an age cut-off for making contributions?

As I'm self-employed and have earned nowhere near the threshold since April 2020, I won't be paying any NI, so I'm not too bothered, but an extra year would have resulted in approximately £4 a week extra pension.

growstuff

If you were claiming the old state pension, you won't be transferred to the new one. On the plus side, you were able to claim your pension earlier than most of those on the new one.

That is correct.

You may also have made Graduated Pension contributions years ago too which will add a minute amount to the Basic Pension.

Doodledog

growstuff

Also ... my birthday is on 1 April and I'm not allowed to make voluntary contributions for the five days until 5 April (end of the tax year). Therefore, my final (almost) year won't count. I had a long conversation with the Pensions Service about it.

That is most unfair!

Is there an age cut-off for making contributions?

If I were employed, I would have to make NI contributions up to my 66th birthday, but the guy I spoke to said that there was no way I could make up the gap for the year after I reach state pension age. That's one of the reasons I know that it's only whole years which count.

Yes, there's a cut off, which is your state pension age.

growstuff

PS. People on the new state pension don't receive SERPS. It's swings and roundabouts, but you can't have both.

Actually that's not quite true, I get mine in March after paying in for the best part of 51 years, I will get a pension based on the 46 years I had paid in before the new rules less any years I opted out, however my pension is actually more than the new state pension by about 20 quid - I was surprised I didn't think I would get that much however my DH paid in for 45 years under the old rules and didn't opt out and he gets £224 a week so I have lost out by opting out

Doodledog I have just checked my National Insurance record again on GOV.UK and my last year of work is recorded as a full year and I finished in July. I'm only going by their records.

I know that if you are relying on credits or self employed stamps you need one for each week of the year.

Could I ask a question please from one of you knowledgeable ladies?

I have been in receipt of full new state pension for the past 4 months. It comes with an additional £6 a week “protected payment”

I’ve no idea what the additional payment is for although I’m very grateful to receive it. Does anyone know what it is? I haven’t found an explanation anywhere that is simple enough for my brain to understand.

NotAGran55

£637.92 every 4 weeks is £691.08 per month , so very little difference Shanimae

The new state pension is £175.20 per week for 35 year contributions so the difference is sizeable, NotAGran55.

Grannynannywanny

Could I ask a question please from one of you knowledgeable ladies?

I have been in receipt of full new state pension for the past 4 months. It comes with an additional £6 a week “protected payment”

I’ve no idea what the additional payment is for although I’m very grateful to receive it. Does anyone know what it is? I haven’t found an explanation anywhere that is simple enough for my brain to understand.

The protected payment would be any additional contributions you made over the 35 years by 6th April 2016, as I said up post my state pension is a lot more than the new state one that's because I had already paid in for 46 years years when the new rules came in, even though I did opt out for a time, its a form of SERPS. This from the Pensions Advisory Service will explain. Older individuals with many qualifying years, who have not contracted out and have accrued a good additional state pension may have a starting amount which is more than the full amount of the new State Pension. The amount over the new State Pension is known as the 'protected payment'. The Protected Payment will be increased before state pension age and in payment. They will not build up any further state pension from April 2016.

SpringyChicken

NotAGran55

£637.92 every 4 weeks is £691.08 per month , so very little difference Shanimae

The new state pension is £175.20 per week for 35 year contributions so the difference is sizeable, NotAGran55.

It's claimed that it's cost neutral when you factor in that people have had to wait longer to receive it.

Chakotay

growstuff

PS. People on the new state pension don't receive SERPS. It's swings and roundabouts, but you can't have both.

Actually that's not quite true, I get mine in March after paying in for the best part of 51 years, I will get a pension based on the 46 years I had paid in before the new rules less any years I opted out, however my pension is actually more than the new state pension by about 20 quid - I was surprised I didn't think I would get that much however my DH paid in for 45 years under the old rules and didn't opt out and he gets £224 a week so I have lost out by opting out

I will have 47 years of contributions, but I will receive less than the full new state pension. I have a mixture of opted out and paying SERPS.

I was told that I won't receive any credit for the SERPS I paid because the state pension I will receive is more than the old state pension plus SERPS. Therefore, I won't receive any "protected payment".

The Pension Service sent me a lengthy breakdown of how my pension would be calculated. I've been through it and it all seems to be correct.

Your combination of contributions must be different from mine.

My total pension including occupational pensions will be more than the full state pension. Is that what you mean?

Thank you for your reply Chakotay

growstuff

Chakotay

growstuff

PS. People on the new state pension don't receive SERPS. It's swings and roundabouts, but you can't have both.

Actually that's not quite true, I get mine in March after paying in for the best part of 51 years, I will get a pension based on the 46 years I had paid in before the new rules less any years I opted out, however my pension is actually more than the new state pension by about 20 quid - I was surprised I didn't think I would get that much however my DH paid in for 45 years under the old rules and didn't opt out and he gets £224 a week so I have lost out by opting out

I will have 47 years of contributions, but I will receive less than the full new state pension. I have a mixture of opted out and paying SERPS.

I was told that I won't receive any credit for the SERPS I paid because the state pension I will receive is more than the old state pension plus SERPS. Therefore, I won't receive any "protected payment".

The Pension Service sent me a lengthy breakdown of how my pension would be calculated. I've been through it and it all seems to be correct.

Your combination of contributions must be different from mine.

Must be I haven't had a breakdown only a letter after I applied telling me how much and the actual payment dates

SpringyChicken

NotAGran55

£637.92 every 4 weeks is £691.08 per month , so very little difference Shanimae

The new state pension is £175.20 per week for 35 year contributions so the difference is sizeable, NotAGran55.

There is a misunderstanding SpringyChicken

The OP was querying why she receives £637.92 when another person receives £700 per month .

She went on to say that her pension was for a 4 week period which is obviously different.

I was saying that her pension calculated monthly £691.08 isn’t much lower than the other one at £700 .

She wasn’t comparing like with like .

sf101

Doodledog I have just checked my National Insurance record again on GOV.UK and my last year of work is recorded as a full year and I finished in July. I'm only going by their records.

I know that if you are relying on credits or self employed stamps you need one for each week of the year.

Obviously I don't know about your particular circumstances - did you work for longer than 35 years, for instance? Or were you getting your NI paid in benefits, or because you were bringing up children and getting the contributions paid for you for some of those years? If you have a full 35 years of contributions (whether paid by you or by the state) then partial years aren't going to matter.

I do know that partial years don't contribute to the minimum number of years, though (as others have backed up by quoting from their own experience) and it is important that anyone still working is aware of that, so that they can make arrangements where possible.

I wish I had known that when I worked term time contracts. I paid in a lot of NI - the salary was for a full year but divided into 9 monthly payments, so I paid the same amount of NI as someone on a full-time contract, but their contributions counted and mine didn't. I was then contracted out by my employer for a few years, and am still having to make up the shortfall of all of this now, despite being over 60 - the age when I was told I would be getting a state pension.

This is why it is important that everyone gets their own forecast - people's working patterns are so different that it is easy to get things wrong based on what other people are getting. It's not at all straightforward.

Chakotay you haven't lost out. The contracted out bit is included in your occupational pension, which is something I assume your DH does not have.

I am not clear about this 'part years not counting.' I retired early, but 6 years later went back to work for just under a year, spread over 2 tax years. My weeky pension went up by several pounds as a result.

M0nica

Chakotay you haven't lost out. The contracted out bit is included in your occupational pension, which is something I assume your DH does not have.

I am not clear about this 'part years not counting.' I retired early, but 6 years later went back to work for just under a year, spread over 2 tax years. My weeky pension went up by several pounds as a result.

Yes I have lost out, let me explain I have paid in for nearly 51 years but the new pension rules that came into force on 6th April 2016 means that I will only get a state pension for 46 years because that's what I had paid in by 5th April 2016, the five years extra I paid in will not go towards my state pension, yes I have a private pension and actually spoke to the Pension Advisory Service today, he couldn't give me an actual figure as I wont know that until I buy an annuity but the figure he quoted as a 'possible' would mean that added up together both my pensions would be less than my DH state pension , and that is for paying in 1 more year of applicable contributions than he did, he does actually have a small private pension as well but not because he opted out,

Chakotay

M0nica

Chakotay you haven't lost out. The contracted out bit is included in your occupational pension, which is something I assume your DH does not have.

I am not clear about this 'part years not counting.' I retired early, but 6 years later went back to work for just under a year, spread over 2 tax years. My weeky pension went up by several pounds as a result.

Yes I have lost out, let me explain I have paid in for nearly 51 years but the new pension rules that came into force on 6th April 2016 means that I will only get a state pension for 46 years because that's what I had paid in by 5th April 2016, the five years extra I paid in will not go towards my state pension, yes I have a private pension and actually spoke to the Pension Advisory Service today, he couldn't give me an actual figure as I wont know that until I buy an annuity but the figure he quoted as a 'possible' would mean that added up together both my pensions would be less than my DH state pension , and that is for paying in 1 more year of applicable contributions than he did, he does actually have a small private pension as well but not because he opted out,

Sorry meant to say although I paid less NI when I opted out I did pay some so its still 46 years of paying in

I think many get frustrated with state pensions because they never tell you if you need to make one more payment in a year so the whole year would count. It is rediculously complicated. I can't get mine until 67 and won't get full amount as COPE for several years but I also have Teachers Pension I will get from August 2021 and I have been paying into a Stakeholder for many years too. DH has worked out if I drawdown about £8000 each year from August 2021 when I get Teachers Pension also of just over £8k each year but keep contributing to Stakeholder to pay less tax I will get more or less the same when Stakeholder runs out when I am 67 and can then fill in shortfall by claiming state pension. It says my state pension will be £172.67 each week but am still claiming NI stamp as a foster carer so will have 34 years full state pension after April 2021. I have 33 years excluding COPE years. Luckily my dh is accountant and worked out best strategy for me. I would have struggled on my own to know about when to open up Stakeholder and how much to pay in each month to optimise future payments and minise income tax payments. It is a mine field.

I went on to the Government Gateway site a couple of years ago and noticed that in one particular year I had 51 weeks of contributions and the year didn't count. I paid for the extra week (can't remember how much, but it wasn't much) and as soon as it was processed, my projected pension went up by just over £4 a week and my record for that year showed as complete.

As I explained above, I can't complete my final year before my 66th birthday because the rules don't allow for it, as my birthday is before the end of the tax year. I could pay for the months before my birthday, but they wouldn't count because I still wouldn't have a complete year. If I were employed, I'd have to pay for them anyway, but they still wouldn't count.

MOnica, it's possible that the rules have changed with the new system. I honestly don't know, but that's been my experience and it's been confirmed by telephone conversations.

I have 47 years of contributions. Some of those years were opted out and some weren't. The opted out years can't count towards a full state pension (only the reduced rate), but the years when I wasn't opted out do count, including the last six years when I've been self-employed and have paid voluntary contributions. Each year I've paid extra has counted towards increasing my state pension by over £4 a week.

For people who haven't reached state pension age yet, it's well worth going on to the Government Gateway site with your NI number and getting a full breakdown of contributions. Any gaps can be made up and it's not difficult to work out whether it's worth it.

Another point worth remembering is that people who received Child Benefit after a certain date will have their qualifying years reduced.

newnanny They do tell you. All you have to do is go on to your Government Gateway account.

Chakotay

growstuff

PS. People on the new state pension don't receive SERPS. It's swings and roundabouts, but you can't have both.

Actually that's not quite true, I get mine in March after paying in for the best part of 51 years, I will get a pension based on the 46 years I had paid in before the new rules less any years I opted out, however my pension is actually more than the new state pension by about 20 quid - I was surprised I didn't think I would get that much however my DH paid in for 45 years under the old rules and didn't opt out and he gets £224 a week so I have lost out by opting out

Were you ever contracted out? The reason I have "lost" my SERPs is that my total pension amount is already more than I would have received from full state pension plus SERPs. Therefore, I don't qualify for the transition amount.