State Pension shortfall of 6 qualifying years

Excalibrator

My wife has only paid NI contributions for 33 years so she will only get 85% of the total state pension when she retires in 2009.

If she takes the pension, and continues paying NI contributions after her retirement date, and untill I retire (5 years) will her entitlement increase?
or.
In 2010 when the qualifiying number drops to 30 years will she then get 100% state pension?

ALIBOBSY

My understanding of the new 2010 rules is they don't apply retrospectively so if you retire (or are due to retire) prior to the new rules you do not get your pension adjusted once the new rules come into force.
Did your wife get a pension forecast recently?
Usually they will list some years past that are available to pay extra into to make up the years?
Didn't she get any HRP to bring her required no of years down?

She can defer the pension and you get extra added onto it because of deffering. Given the low interest rates, if you can manage without it probably worth doing.

Normally the forecast lists some options or she could call the pensions agency and ask for details regarding paying up the extra years/benefits of defferment.

good luck

ali x

EdInvestor

Excalibrator wrote: »

My wife has only paid NI contributions for 33 years so she will only get 85% of the total state pension when she retires in 2009.

A new concession has been made which may help her to buy back up to 6 additional years. This will become available from April.She should ask the Pension Service if she qualifies.

If she takes the pension, and continues paying NI contributions after her retirement date, and untill I retire (5 years) will her entitlement increase?
or.
In 2010 when the qualifiying number drops to 30 years will she then get 100% state pension?

No.

jancee_2

You're not allowed to make NI contributions, except retrostpectively, after state pension age.

Her entitlement won't change in 2010 - your date of birth dictates how many qualifying years you need. Worth bearing in mind that people who require only 30 years can't claim their state pension until later - age 68 eventually.

The rules for buying six more years which apply from April will apply to your wife. The criteria are:

a: Reach state pension age beween 6 April 2008 and 5 April 2015

b: Already have 20 qualifying years.

She won't be able to buy any years in which she was entitled to pay married woman's small stamp, if she ever signed up for that. Each year will cost £626.60.

seven-day-weekend

If you have any children born after 1978 and your wife stayed at home to look after them, AND claimed Child Benefit, she will be entitled to Home Responsibilities Protection (HRP) which will bring down the number of years she needs to qualify for a full State Pension. This also applies if she worked but didn't earn enough to pay NI. It does NOT apply if she paid the Married Women's small stamp immediately before.

I'm also on the 39-year rules, same as your wife, and I have 26 paid years and 13 years HRP, which gives me a full State Pension entitlement, which I can claim from January 2010.

june.elizabeth

HRP only took effect in 1978, not 1974. I started back at work in 1980 and only got 2 years HRP. I have been receiving my State Pension for 2 years now and did not get 100%. I also could not buy back any of those missing years.

Excalibrator

Thanks to everyone for the info. Our only choices seem to be, defer or buy back the lost years. We cannot afford to buy back at the moment (credit crunch issues) and we need the money now so it looks like we will not be able to recover the situation.

seven-day-weekend

june.elizabeth wrote: »

HRP only took effect in 1978, not 1974. I started back at work in 1980 and only got 2 years HRP. I have been receiving my State Pension for 2 years now and did not get 100%. I also could not buy back any of those missing years.

Sorry, meant to put 1978 - have edited my post.

EdInvestor

Excalibrator wrote: »

Thanks to everyone for the info. Our only choices seem to be, defer or buy back the lost years. We cannot afford to buy back at the moment (credit crunch issues) and we need the money now so it looks like we will not be able to recover the situation.

You cannot buy back anyway until next year.It is possible to delay buying back until after you claim the state pension, first claiming the lower amount.