Lump Sum payment to make up for half stamp contributions.

merri-drake

Hello wonderful MoneySavers!:j
I was wondering if anyone would be able to point me in the right direction...
My mum mentioned some time ago that there was a way to pay a lump sum towards her pension as she spent a large section of her life paying half stamp. Is there a site I can look at so I can pay this for her? Where is the best place to look for more information on this topic?
Many thanks to all and Happy New Year!
Merri

EdInvestor

merri-drake wrote: »

My mum mentioned some time ago that there was a way to pay a lump sum towards her pension as she spent a large section of her life paying half stamp.

It's not possible to "top up" years where the Married Women's stamp was paid.
But it is possible to make up the last 10 years in arrears, if they are missing or only particually paid on full NI basis. As of next April some women will also be entitled to buy up an additional 6 years.

Contact https://www.thepensionservice.gov.uk to find out if it's worthwhile in your Mum's case.

jack_spratt_2

Just to add to what Ed has said !! that the amount of years needed is being reduced from 2010 to 30 years also make sure she has claimed home responsibility protection which started in about 1978 for the years she was bringing up children .
you are able to get a pension forecast from Newcastle

jancee_2

jack_spratt wrote: »

Just to add to what Ed has said !! that the amount of years needed is being reduced from 2010 to 30 years also make sure she has claimed home responsibility protection which started in about 1978 for the years she was bringing up children .
you are able to get a pension forecast from Newcastle

You can't get HRP for years in which you were entitled to pay married woman's stamp, sorry!

EdInvestor

jancee wrote: »

You can't get HRP for years in which you were entitled to pay married woman's stamp, sorry!

To my mind this rule needs changing.Currently as jancee says, if you had been paying MW stamp up to the time you left work to look after children, you are not entitled to HRP.

But how many women would have known - at the time - that to get HRP credits they needed to switch to full stamp the year before leaving work? Were they told by the Government this was the case?I think not.

It probably doesn't apply to that many people, as by 1978 there were probably not many younger women left paying MW stamp. It would be interesting to know how many are affected by what is a very unfair rule.

jack_spratt_2

Just to clarify jancee post above this was taken from a website

http://www.thisismoney.co.uk/help-and-advice/advice-banks/article.html?in_advicepage_id=125&in_article_id=426322&in_page_id=90


What if I paid NI contributions at the married women's reduced rate?
Married women and widows cannot get HRP for any tax year in which they have paid reduced rate NI contributions – sometimes known as the married women's stamp. If however, they no longer have a reduced contribution liability, then they can get HRP.



What is changing from 2010?
If you reach state pension age on or after 6 April 2010, time which you have been awarded HRP before this date will be converted to credits. From April 2010, you may be credited with contributions for periods when you were:
1. Receiving child benefit for a child under 12
2 Caring for a sick or disabled person for at least 20 hours
3. An approved foster carer