State pension short fall

catwoman150

I am posting this on behalf of a friend. They are 60 now and they are hoping to retire. They have had a forecast for their full state pension and they are short in years. They only have 27 years in instead of 39 years. Some of the rest of the years they have been paying married womans contributions which is not the full stamp.

Am I right in thinking that they can buy back some years in NI contributions? If so how much can they buy back in years. As they are already 60.

Also would it be worth them doing it as they have some figures and 6 years comes to £2000.

Any thoughts would be great.

EdInvestor

catwoman150 wrote: »

I am posting this on behalf of a friend. They are 60 now and they are hoping to retire. They have had a forecast for their full state pension and they are short in years. They only have 27 years in instead of 39 years. Some of the rest of the years they have been paying married womans contributions which is not the full stamp.

How many years did she pay the small stamp for?

Am I right in thinking that they can buy back some years in NI contributions? If so how much can they buy back in years.

She can buy back the last 10 years (ie 1997-2007) but she may already have paid for these years.There is a new rule coming in which should enable her to buy back another 6 years, but these need to be after 1975. So it really depends on which actual years are already paid up (small or big stamp or HRP) and which ones are "missing".

Also would it be worth them doing it as they have some figures and 6 years comes to £2000.

Presumably she is aware she can claim a 60% state pension based on her husband's contributions (after he reaches 65) and 100% if she is widowed or divorced?She needs to compare what she would get on her own account with this.

catwoman150

EdInvestor wrote: »

How many years did she pay the small stamp for?



She can buy back the last 10 years (ie 1997-2007) but she may already have paid for these years.There is a new rule coming in which should enable her to buy back another 6 years, but these need to be after 1975. So it really depends on which actual years are already paid up (small or big stamp or HRP) and which ones are "missing".



Presumably she is aware she can claim a 60% state pension based on her husband's contributions (after he reaches 65) and 100% if she is widowed or divorced?She needs to compare what she would get on her own account with this.

The gap is between 1970 and 1988 ish

I think that it is about 5 years that they paid married women stamp.

Her husband is only 50 at the moment. So she will have to wait a long time for his pension.

EdInvestor

catwoman150 wrote: »

The gap is between 1970 and 1988 ish

The recent rule should allow her to buy 6 years after 1975.

Has she claimed Home Responsibility Protection years after 1978, if not working, but at home looking after kids?

I think that it is about 5 years that they paid married women stamp.

It would be helpful to know which actual years.

It's all horrendously complicated, I know

chesky369

Do you know if she will get any SERPS (second pension) payments?

catwoman150

chesky369 wrote: »

Do you know if she will get any SERPS (second pension) payments?

I dont know if they will be able to get this or not

bestpud

Ah, I need to know this for my mum too!

Sorry to butt in OP. I asked up in one of the stickies but it's a bit quiet up there.

I don't think my mum has ever not worked (and paid NI) but she has paid the married womans stamp for so many years.

I don't know if it was after 1975 but I'm guessing it probably is. I will find out.

Thing is she was 60 last year and has deferred (or put off somehow - sorry I don't know fully what she did but it was an option given to her, officially, on reaching 60) her state pension until she is 65 - I believe she gets slightly more a week for holding off a while and as she still works now, she thought it was sensible.

Would she still be able to buy the six years worth now though?

Sorry again OP. I thought it was easier to ask here as we both need to know pretty much the same thing.

jancee_2

The years in which married woman's stamp was paid are lost forever I'm afraid. If the new proposals are approved people who retire between April 2008 and April 2015 may be able to revisit years from 1975 onwards and buy back an extra six years.

By deferring her pension for five years she will get the option of a lump sum plus interest and the same weekly payment or bigger weekly payments, increased by 10.4% per year [compounded].

catwoman150

Thanks for the info I have passed it all on.