60 year old woman who hasn't worked!

CIS

He'll have a full pension, so she'll get an uplift from 35% to 60%, around £20 a week or so.

But, they can claim pension credit as your dad's over 60, depending on income.

CIS

Part time doesn't come in to it.

Qualifying yrs are decided on the basis of NI contributions. I'am assuming from her returning to work, that its after 1978, so the newer rules apply.

Using 2006/07 as an example, to get a qualifying yr , you need 52 weeks of contributions or credits (or combination).

Each week that a person earns over £84 gives 1 week of NI. Also, if a persons earns a total of £84*52 = £4368 or more across the tax yr, then they get a full qualifying yr, as the average wage is over £84 p/w.

Each week of NI credits counts as £84.

so for example;

a person earns £3000 and has 20 week sof NI credits.

£3000/84 = 36weeks of contributions + 20weeks of credits =56weeks, so 1 qualifying yr.

a person earns £4600

£4600/84 = 55 weeks of contributions = 1 qualifying yr

margaretclare

Hi CIS

But doesn't all this depend on whether she paid full NI contributions, or whether she opted to pay the 'married women's contribution' which continued to April 1978 and still applied to women who'd made that choice before that date?

It's been my understanding that if she made the 'married women's contribution' choice then HRP doesn't apply.

I agree, you pay NI contributions whether you work full-time or part-time. But if this lady had been paying the 'married women's small stamp' (as it was called) doesn't this alter the whole picture?

Margaret Clare

CIS

Yoru right, (actually I never thought about it - too late at night :wall: ), ordinarily its one of the first questions that would occur.

If she paid MWE for any period in which she also accrued HRP, then the HRP would be not be counted against the record, whilst an open election was in force.

If the first person had paid reduced rate NI for the entire working life prior to giviong up work they wouldn't have an NI record, but they would still have accrued HRP. Once a person has ceased NI contributions for 2 complete tax yrs the reduced rate election lapses and cannot be re-opened.

If she had paid those 7 yrs as MWE, then she would need to find 39-18 = 21yrs for a full pension, so that would be 6yrs for a minimum pension.

EdInvestor

Maestroman wrote:

great get it now thx.

My Dad will be 65 in another 3 years. Given he has paid full NI conts all his working life (since age 17) what sort of uplift would my mum expect when he hits SPA?

Has you Dad asked for a pension forecast?There are actually two state pensions - the basic one and the state 2nd pension, S2P (formerly SERPS).If your Dad has been contracted in to S2P and has a full NI record, then his pension should be more or less double the basic state pension, because of his S2P entitlement.

CIS

Just to note, although what EdInvestor says is true, its only the basic state pension that effects how much your rmum can get based on your dads record, his Additional Pension wont effect her pension in anyway.

Maestroman

ta guys - he's effectively a civil servant so i imagine their scheme was contracted out. My mum doesnt even know if she paid MWE as it was so long ago, but hopefully the IR should be able to fill her in.

CIS

HMRC will able able to tell her, or she can ring state pension forecasting on 0845 3000 168. They have access to the National Insurance Computer system (eNIRS) which holds all of the details

Civil servants in the civil service pension scheme are contracted out and will accrue minimal additional pension (if any).