Pension Boosting article discussion

IKM

After further web searching I have found a definitive answer to this question. With reference to the government website "nidirect.gov.uk/state-pension-and-pension-credit-rate-how-much-can-you-get" the extra state pension received for deferring is considered as part of the additional state pension and is increased each year in line with prices which is defined as CPI in the same document. The basic and additional state pensions are increased in April using the CPI from the previous September. Therefore extra state pension currently in payment will increase in April 2013 by 2.2% which is the CPI at September 2012. At the same time the basic state pension will increase by 2.5% because of the triple lock guarantee, i.e. the higher of CPI, average earnings or 2.5%.
The above is the current situation. There is no guarantee that the government wont change things in future.

SnowMan

IKM wrote: »

After further web searching I have found a definitive answer to this question. With reference to the government website "nidirect.gov.uk/state-pension-and-pension-credit-rate-how-much-can-you-get"

Yes that's interesting. As I can post links the link is

http://www.nidirect.gov.uk/state-pension-and-pension-credit-rate-how-much-can-you-get

Where it says

How is the additional State Pension rate increased each year?

Additional parts of the State Pension rise in line with the increase in prices. These include:

• the State Second Pension (S2P)
• the State Earnings-Related Pension Scheme (SERPS)
• Graduated Retirement Benefit
• Extra State Pension received for putting off (deferring) your State Pension claim (also called ‘increments’)

Jaycee_Dove

Thank you all for this useful update information on deferment.

harryhound

My wife must be one of the last women in the country to have retired at 60 under the "old" rules.
She receives some boost to the basic state pension for "family responsibilities", she opted back into the additional state pension when a stay at home mum with our two children. However under the old rules she is still a few years short (of the 45?) required for a full state pension.

I have now qualified for the full state pension. Would the right to a married woman's pension on the strength of her husband's contributions, in any way enhance her current payment?

jamesd

The husband's contributions possibility only helps if she has lower entitlement in her own name.

It's very unlikely that you have qualified for the full state pension, which can be as much as around £250 a week with maximum additional state pension for a full working life (there's no 30 year cap on this portion). You've probably just qualified for the maximum basic state pension and whatever earnings-related pension your SERPS and S2P contributions entitle you to.

pink_boots

joannie wrote: »

Hi,

To any ladies out there who are divorced and thinking of getting re married, think twice. I was going to get re married but am entitled to a full state pension from my ex's contributions. I do not have enough of my own and if I get re married I will only get 60% pension based on my new husband's contributions. Shan't be getting re married now, will just live together.

So much for family values!!

Thank you so much for that info. I retire in May and know I have not the full qota of contributions for my SP this is due to bringing up my children and looking after my elderly mother and did not know if I was entitled to anything due to my careing for my mum. I am divorced but had heard from someone that I could claim from my ex's contributions. Due to your post I will definately look into it.

taktikback

Am I alone in feeling that this attitude is just a teensy bit cynical?

Anyway - Home responsibilities credits for bring up children and caring would be payable -so the deficit shouldn't be too large - unless of course you haven't worked at all - but then there's always the ex husbands fund...

kippers

I am a stay at home mum who has always claimed child benefit to make sure my pension stamp is paid. My youngest daughter is now 13 and I think I am the only person in the world that didn't know that the rules changed in 2010 from your stamp being paid up until your youngest child turned 16 and now it is until they turn 12...so i'm not happy.

I rang the goverment pensions dept who were as useless as a chocolate teapot and they are sending me a pension forecast and told me to ring them back when I receive it.

I am not at all sure what I will need to pay them (or how we can afford to pay them what I owe). My husband works full time.

If they include the years I have been claiming child benefit, I have worked out that I have paid 28 years, I will be 65 in 19 years time. I have read that you need to pay 30 years worth? If so, do I just pay two years worth (the lady told me it's £13.25 per week) or is that too simple?

I'm not very good when it comes to pensions, so please assume I know nothing when you post a reply.

(We do not claim any other benefits)

Thank you

Jack_Griffin

Assuming the recently announced changes go through then by the time you retire you'll need 35 years contributions to get a full state pension.

If you've never had a job then you'll not have any additional state pension, if you have done then the calculation won't be as simple as below, but I suspect if you only worked a few years then it is unlikely to make your pension any bigger.

So with 28 years you'll have around £143x28/35 = £114.50/week in todays money, of course it rises with inflation so in 19 years it should have similar spending power.

Also I have to disappoint you because you will not get your pension at 65, it will be 66 (or even older if they move the goalposts again) by the time you are entitled to collect.

From http://www.pensionsadvisoryservice.org.uk/state-pensions/state-pension-age-calculator

• Men and women born on or after 6 October 1954 but before 6 April 1968 will have a state pension age of 66
• Increases from 66 to 67 and then to 68 will affect men and women born on or after 6 April 1968 (see update below)

gadgetmind

kippers wrote: »

If so, do I just pay two years worth (the lady told me it's £13.25 per week) or is that too simple?

Far too simple! Class 3 is pretty complex and pretty expensive. My wife has therefore registered as self-employed and pays £2.60 ish a week and will do until she has 35 years.

She has to do a self-assessment tax return but this is no great hardship.

My wife picked a "profession" that made her car insurance cheaper than "housewife" because we know someone who put "sage/poet" and his insurance went up!