Shortfall in National Insurance Contributions

ravenk

Hi,
I like to think I know my way around finance, ask me anything you want about Government bonds , options , currency swaps. However when it comes to state pensions and serps etc ...I'm lost.

Anyway my question is -
My wife works part time and does 18.5 hours per week and is paid minimum wage.
She got a letter to say she has a short fall in payments , with the option to make a payment.
We also have a letter from 2 years ago saying the same.
One gives until 2015 , the other until 2017 to make payment.

She has 23 years contribution so far.
The chap at the tax office you need to pay to get a full pension.

However with the £140 min state pension proposal , then should I wait ?
Would hate to send off £160 and then find out in a few months that she would get a £140 min pension regardless.

molerat

From suggestions on other threads the single pension will still be contribution based.

ridingwood

So what will happen to those people who for one reason or another have not paid enough contributions - will they be left to starve or have another 'pension credit' which is one of the things they are trying to end?

xylophone

Currently, your wife needs thirty years' worth of contributions/credits for a full state pension.
https://www.gov.uk/state-pension/eligibility

This article suggested that the contributions requirement would go http://www.dailymail.co.uk/news/article-1323447/140-pension-Boost-stay-home-mums-married-couples.html
but this http://www.telegraph.co.uk/finance/personalfinance/pensions/9297777/Anger-grows-over-second-class-state-pension.html presupposes that they will stay.

Nobody really knows anything yet. A White Paper is expected.....http://www.saga.co.uk/money/pensions-and-savings/white-paper-pension-reform.aspx

mystic_trev

According to the new proposals, you're now going to need 35 years contributions.

Those who have paid for less than 35 years will see their pension reduced, in a change from the 30-year threshold introduced a few years ago.

http://www.bbc.co.uk/news/business-20989050

I assume they'll let those (like me) who've only got 30 years, top up?

mamabuddah

be curious to hear that myself...currently OH and me have 30 yrs contributions each:

ME: Ill health retirement pension circa £15k...no government assistance, unable to work, wouldn't probably get JS OR a job due to illness (been denied DLA anyway)

OH: age 59 has no contributions over last 3 years, so no additional financial help due to OH pension...not much point in JS either then.

So how are we expected to achieve 35yrs contributions?...talk about moving the goalposts, I would have thought if you had reached 30yrs by this stage they wouldn't sneakily try to add on another 5 ... saw elsewhere that if you "sign on" for JS...you get your contributions paid....I would imagine there's quite a few people in this predicament, early retirers etc...so surely this will "bump up" the unemployed figure as well....seems a shame when you have worked all your life and paid your way you can be as well off in retirement as a third generation professional benefits claimant

molerat

Are you sure you have only got 30. The pension forecast only shows a max of 30 because that is all that is needed. Mine shows 30 but I have calculated I should have had 37 by the time I retired just before 55. You will need to get a new forecast once they have updated the computer system, hopefully they will get it sorted quickly as there are many who now need the correct information.

posh*spice

mystic_trev wrote: »

According to the new proposals, you're now going to need 35 years contributions.



http://www.bbc.co.uk/news/business-20989050

I assume they'll let those (like me) who've only got 30 years, top up?

Also according to BBC you can just take a % - so 30/35 = 85%

mystic_trev

posh*spice wrote: »

Also according to BBC you can just take a % - so 30/35 = 85%

I guessed that might be the situation. I'd only accumulated 27 years, and in 2007 purchased anther three to take me up to 30, thanks to this Forum. I really don't think I'll bother trying to buy another 5, even if I could.

Iceweasel

I am currently out of work, receiving Guaranteed Pension Credit for my wife and myself.

I will be 65 in August and have over 37 years NI contributions so I will definitely qualify for full pension.

However my wife is 52, so wont reach pension age herself until 2028, we believe.

She has no NI contributions of her own at all and is concerned as to her position if I die before 2028.

We are unsure as to what pension she might be able to claim, if at all, from my contribution record.

Would it be economically viable for her to make any/some voluntary contributions?

Any/all advice welcome.