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  • FIRST POST
    • sjw11
    • By sjw11 24th Nov 11, 5:18 PM
    • 25Posts
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    sjw11
    Pre 97 Additional State Pension
    • #1
    • 24th Nov 11, 5:18 PM
    Pre 97 Additional State Pension 24th Nov 11 at 5:18 PM
    I am helping a friend to try to understand her State Benefits Statement.
    She is widowed and receives the normal Basic State Pension
    But we are worried that she seems to be receiving a large "Pre 97 Additional State Pension"
    She did not pay NIC much with having children and being self employed, and her husband also did not pay NIC for the full 44 years.
    I am reluctant to ring the Pensions service in case they simply delete it.
    The statement shows:
    Pre 97 additional State Pension of £145.10 (nearly the maximum)
    reduced by
    Contracted Out Deduction of £46.70

    Any clues greatly received
Page 1
    • dunstonh
    • By dunstonh 24th Nov 11, 6:31 PM
    • 84,123 Posts
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    dunstonh
    • #2
    • 24th Nov 11, 6:31 PM
    • #2
    • 24th Nov 11, 6:31 PM
    She did not pay NIC much with having children
    Home responsibilities protection may have applied depending on her age. This credits her with the NI.

    Pre 97 additional State Pension of £145.10 (nearly the maximum)
    reduced by
    Contracted Out Deduction of £46.70
    Thats a rather large amount of additional state pensions. She was also contracted out at some point which indicates that she did have a period of employment.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • sjw11
    • By sjw11 24th Nov 11, 7:12 PM
    • 25 Posts
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    sjw11
    • #3
    • 24th Nov 11, 7:12 PM
    • #3
    • 24th Nov 11, 7:12 PM
    Home responsibilities protection may have applied depending on her age. This credits her with the NI.
    Originally posted by dunstonh
    She is 80, but I wouldnt expect as much as this, it is nearly maximum



    Thats a rather large amount of additional state pensions. She was also contracted out at some point which indicates that she did have a period of employment.
    Originally posted by dunstonh
    Yes but it would have been minimum NI payments ... was it "married womens reduced rate" or something like that

    Is she perhaps receiving 50% of late husbands as well
    • anmarj
    • By anmarj 24th Nov 11, 7:37 PM
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    anmarj
    • #4
    • 24th Nov 11, 7:37 PM
    • #4
    • 24th Nov 11, 7:37 PM
    if your friend paid married womans stamp then that would not qualify her for state pension

    addtional state pension is when you have paid your stamp and you pay over and above this.
    Additional State Pension

    An additional State Pension can give you extra money on top of your basic State Pension. It is also sometimes called the State Second Pension (it used to be called the State Earnings Related Pension Scheme (SERPS)). You may be entitled to additional State Pension if you're employed, looking after a child or caring for someone. Find out if you are eligible for additional State Pension.nal stat

    she would of inhertited certain basics of her late husband' State pension when he died

    this is a guide to state pension, the figures used may be out of date as it is old but the actual content is still relevant

    http://www.mypersonalfinances.co.uk/SC_Docs/doclibrary/Guide_to_state_pension.pdf

    but if the amount she is getting is incorrect then it needs to be sorted sooner rather than later and bury head in sand is not going to help.
    still happily married and mummy to one

    "A little knowledge is a dangerous thing"
    • dunstonh
    • By dunstonh 24th Nov 11, 7:50 PM
    • 84,123 Posts
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    dunstonh
    • #5
    • 24th Nov 11, 7:50 PM
    • #5
    • 24th Nov 11, 7:50 PM
    She is 80, but I wouldnt expect as much as this, it is nearly maximum
    The additional pensions obtained nowadays are far lower than those of the past. It is not uncommon for the older generations to have a much higher qualification for additional state pension than someone today. So, an 80 year old could easily have that much whilst it would be less likely with a 65 year old and near impossible for a 30 year old (assuming current levels remained the same for working life).

    The entitlement would be affected by her late husband.

    The Pension Service are normally quite good at running through things like this to check figures are correct and explain how they were built up.
    http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/Basicstatepension/DG_180132
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • xylophone
    • By xylophone 24th Nov 11, 7:52 PM
    • 18,474 Posts
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    xylophone
    • #6
    • 24th Nov 11, 7:52 PM
    • #6
    • 24th Nov 11, 7:52 PM
    http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_183780 http://en.wikipedia.org/wiki/State_Earnings-Related_Pension_Scheme

    If the friend is 80, I assume that her late husband too would have been born before 5th October 1937 so she has inherited 100% of his serps - it may be he who was contracted out at some stage which would account for the COD?
    • sjw11
    • By sjw11 24th Nov 11, 8:18 PM
    • 25 Posts
    • 2 Thanks
    sjw11
    • #7
    • 24th Nov 11, 8:18 PM
    • #7
    • 24th Nov 11, 8:18 PM
    Thanks for the links and possible explanations
    As far as I understand her husband did not accumulate full 44 years NI contributions, as he too was self employed early in life, but he did go on to be a teacher when he clearly would pay normal NI
    Not sure his age when he died.... will find out
    • sjw11
    • By sjw11 24th Nov 11, 9:04 PM
    • 25 Posts
    • 2 Thanks
    sjw11
    • #8
    • 24th Nov 11, 9:04 PM
    • #8
    • 24th Nov 11, 9:04 PM
    I think he did about 30 years as a teacher, so that would indicate the CO element
    And I understand he died at the age of 77
    Still seems a lot, but I do believe she is entitled to full state pension inspite of anmarj comments
    So is there any way to calculate this Pre 97 addition ?
    • xylophone
    • By xylophone 25th Nov 11, 1:06 AM
    • 18,474 Posts
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    xylophone
    • #9
    • 25th Nov 11, 1:06 AM
    • #9
    • 25th Nov 11, 1:06 AM
    If you want accurate information I don't see any alternative to contacting the Pensions Service.

    Why has your friend suddenly become concerned? What was the pension situation when her husband was alive?
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