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State pension - quick question

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  • Hi...I have also had a pension forecast as I am 60 in Feb. 2009..My query is if the basic pension is £90 per week can anyone explain why I've been quoted £75 per week pension? I will have an occupational pension of £275 per month. Thanks.
  • chesky369
    chesky369 Posts: 2,590 Forumite
    Did you always pay the full-rate national insurance contribution? Did you ever have years off work to bring up children? Did you pay the married woman's contribution?

    These are the main reasons for womens' pensions to be smaller than expected (or hoped for). Of course, if you're a man - no idea.
  • I've paid the full rate for about 24 years and I paid the married woman's stamp for about 6 years in the late 60's to 70's. I have had in total about 10 years off for child care.
  • ding_dong wrote: »
    I've paid the full rate for about 24 years and I paid the married woman's stamp for about 6 years in the late 60's to 70's. I have had in total about 10 years off for child care.

    You should be credited under the Home Responsibilities Protection rules for those 10 years in child care.
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • chesky369
    chesky369 Posts: 2,590 Forumite
    I'm not 100% sure, but I think HRP only goes back to 1978, so it depends when Ding Dong had her children. She may be entitled to additional money from SERPS or whatever they call the second pension nowadays. She does have an occupational pension, so it depends on for how much of her working life she contributed to the company pension scheme and how much she did through the State Pay As You Earn (PAYE) system.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    ding_dong wrote: »
    I've paid the full rate for about 24 years and I paid the married woman's stamp for about 6 years in the late 60's to 70's. I have had in total about 10 years off for child care.


    To get the full basic, you need 39 years of full stamp (martried women's stamo years do not count for state pension). You can deduct from the 39 target any years off for Home Responsibilities after 1978 (assuming you were paying full stamp before leaving work).

    So assuming all 10 years HRP were counted, you would be eligible for 24/29ths of 90 pounds p.w, ie 74.48 p.w.

    Add on any entitlement to SERPS/S2P (which may be nil as you were probably contracted out into your company pension).

    The Pension Service will eventually send you a full rundown on their calculations.
    Trying to keep it simple...;)
  • You couldn't be a 'doom monger' if you tried!!

    I condensed my situation down quite a bit on previous post! I'm just a grumpy old woman these days and I begrudge the government getting a cent of my money that could go to my sons and/or family.

    Leeches, the lot of them.. :D

    Jeannieblue, just got back to this interesting thread after my hols. If your half of the house is worth less than the inheritance tax threshhold - £312,000 in 2008-09 - then no inheritance tax would be due.
  • ampersand
    ampersand Posts: 9,692 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Hello jeannieblue,
    I've been away for a few months and found 2 'approaching pension' letters on my return and found the people on the no's given extremely helpful.
    I've not long written as much to 'hansi', when I saw his/her post entitled 'State Pensions Query'.
    Here are the no's I phoned:
    0845.300184, from which FREEPHONE no. 0800-991234 was given.
    Both people were hugely helpful.
    See how you get on - mine starts in January, when I turn 60(and I've no idea how that has happened - it's a big number that has nothing to do with my idea of me).
    Best of luck.
    CAP[UK]for FREE EXPERT DEBT &BUDGET HELP:
    01274 760721, freephone0800 328 0006
    'People don't want much. They want: "Someone to love, somewhere to live, somewhere to work and something to hope for."
    Norman Kirk, NZLP- Prime Minister, 1972
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  • jancee_2
    jancee_2 Posts: 221 Forumite
    Just to confirm that Home Responsibilities Protection did not commence until 1978 so anyone in receipt of Child Benefit before that, those years don't count. It's true that it won't kick in during a year when you have qualified by paying enough NI through working. Or rather, [from 2010] they will count up your qualifying years and if necessary top up with HRP years if any are available.

    Also, in regard to queries about why you have to continue paying NI on earnings even after you've reached enough qualifying years for your full state pension - this is because your NI contributions aren't just for your pension; they count towards contribution-based Jobseeker’s Allowance, Incapacity Benefit, Bereavement Benefits, Retirement Pension and Maternity Allowance.

    So if any of you approaching retirees are planning a baby you're covered! :rotfl:

    It's not true to say that you're not told about missing years that you can pay up with voluntary contributions to make them into qualifying years. HMRC sends out deficiency notices if you're short of contributions and the information is also given on the pension forecast you can apply for either online, by phone or by sending in Form BR19. You can only go back six years though [except in some cases to 1996 - 2007].

    You need to work out how much extra pension you will get if you pay up a missing year against how much it costs. It's usually beneficial to pay it up.
  • johnllew
    johnllew Posts: 1,928 Forumite
    Aren't the government generous.. I can give away £250 to different people... We are so conned in this country. Can you imagine being told all of this if you lived in the States for instance? They'd be lynched (now that's an idea..).
    Swings and roundabouts. I wouldn't like to live in a country without the NHS, where the quality (or even provision) of medical care depends on whether you can afford it.

    Does not US Estate tax include such items as life insurance payouts & pension funds in taxable estate? Can you imagine them trying this here? They'd be lynched.....
    chesky369 wrote: »
    Bloaty, be very careful if you are still contributing to your NHS pension and are planning to work part-time. If the scheme is final salary it may have a bearing on your end pension if you reduce your time (and thus your annual salary).
    I imagine it's like the Civil Sevice scheme where they use the equivalent full time salary figure to determine pension. Working part time just reduces your length of service compared to full time.
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