Full state pensions for "stay at home mothers"

gadgetmind

How's that going to work then? Any time out of work looking after kids and you automatically get 30 years of "stamp"?

We're currently voluntarily paying NI for my wife and I intend to keep this up until things are clearer, but wondered if anyone had seen any solid info.

Mrs_Arcanum

gadgetmind wrote: »

How's that going to work then? Any time out of work looking after kids and you automatically get 30 years of "stamp"?

We're currently voluntarily paying NI for my wife and I intend to keep this up until things are clearer, but wondered if anyone had seen any solid info.

Already discussed here on MSE

gadgetmind

Mrs_Arcanum wrote: »

Already discussed here on MSE

Hmmmm, thanks, but rather more heat than light in that thread!

xylophone

http://www.guardian.co.uk/society/2012/may/12/full-state-pension-parents-carers

"The government will publish the full details of the pension reform in the coming weeks". Waiting with bated breath?:D

margaretclare

I don't know about 30 years, but since April 1978 it has no longer been possible for a married woman to 'opt out' of paying full NI contributions, by opting to pay what was euphemistically called the 'small stamp' or the 'married women's reduced contribution'. This means that there are still women who made that choice, who are newly-retired or still coming up to retirement, who can only get 60% of what their husband gets and only then when he retires. Not in her own right, in other words.

However, since that change in 1978 and a further change in April 1990 when the principle of separate taxation was introduced, it has been established that a woman should have her own money and not be dependent on her husband, which was the principle for many centuries before that.

This may not be answering your question, but it may explain the reasoning behind future planned changes.

gadgetmind

margaretclare wrote: »

This may not be answering your question, but it may explain the reasoning behind future planned changes.

I understand the reasoning behind the planned changes as I read the white paper (twice!) but I don't yet know what the planned changes are! Why have headlines in the papers with nothing solid behind them to let people make sensible plans?

Daniel_Elkington

You could check out http://www.direct.gov.uk/en/pensionsandretirementplanning/statepension/statepensionforecast/dg_10014008
here (HMRC don't half have long links).

If you've already got the required NIC's I'd stop paying the class III's!

StevieJ

So most workers will be better off but it is self funding, some people are going to be very

He defended the changes, saying they would leave most workers better off and provide a far simpler system than the "chaotic" one currently in place.

gadgetmind

Daniel_Elkington wrote: »

You could check out http://www.direct.gov.uk/en/pensions...st/dg_10014008
here (HMRC don't half have long links).

Online state pensions are currently disabled for most people, including myself and spouse. Oddly, it still works for some and I haven't worked out the pattern.

If you've already got the required NIC's I'd stop paying the class III's!

This is for my wife. She's at 26 years of NICs and is using class 2 (cheaper than class 3!) to earn the missing years.

If she won't need the extra years due to HRP and new rules, then we'll stop paying immediately and see what we can claim back!

jamesd

That seems to be announcing the end of contracting out for defined benefit workplace pension schemes. Contracting out was already abolished from 6 April 23012 for personal pensions.

The government sector is the main one with lots of employees in defined benefit schemes and I suppose that the government will now be passing on the lost contracted out rebate bill to the employees, as the remaining private sector employees with similar schemes are very likely to do.

Best to wait until we see in more detail what the plans are, though.

silver_4444_uk

We have been paying voluntary contributions for my wife for the last 6 years. From the latest forecast she has accumulated 29 years. We will continue paying until we hear different or the 30 years is achieved, as at least we know she will have achieved the "present requirements".

Who knows what the goal post will be next ?