Do they only count N.I. contributions from aged 19?

chris_m

SnowMan wrote: »

Would have thought the message should have been

Get a life, you should have better things to think about at your age

:rotfl:

A better one would be along the lines of "State Pension? You're hopeful aren't you? Better start saving now."

Goldenyears

When youth credit started men needed 49 years of NI and women 44 years for a full Basic State Pension, so hardly surprising they withdrew that option eventually.

pmcx9

This is interesting for me. If things go according to plan I hope to retire at 51. I am 45 now. Does that mean I will have the required 35 credits as I had assumed I would only have 32 from 19 years of age.
Thanks.

edit; I have checked the tpas website and it appears this is the case as many have stated

SnowMan

pmcx9 wrote: »

This is interesting for me. If things go according to plan I hope to retire at 51. I am 45 now. Does that mean I will have the required 35 credits as I had assumed I would only have 32 from 19 years of age.
Thanks.

edit; I have checked the tpas website and it appears this is the case as many have stated

You will have the 3 years of youth credits almost certainly.

However you are strongly advised to get a pensions statement which will show how many years you have to date.

Because of the proposed transitional arrangements it is not quite as simple as saying you need 35 qualifying years. In particular you may not get £144 from the state even if you have 35 qualifying years.

Under your retire at 51 plan all of your qualifying years will be pretty much pre-implementation of the new scheme.

Your foundation amount (the amount they will say you have at implementation) will be less than £144 unless the SERPS/S2P you have accrued while contracted-in is more than £37.

For example if you had been contracted-out of SERPS for all your working life then it is possible even likely that your foundation amount will be in the region of £107 (the current basic state pension).

If you have no qualifying years after implementation because you have stopped work then the foundation amount will be the amount of state pension you get so could be just £107.

However if your plans change and you work after implementation and get further post implementation qualifying years you can bring your state pension (foundation amount) up to £144.

You may think it is unfair you won't get the £144 if that happens. However what is happening is that in circumstances that you will only get £107 from the state despite 35 years, you will have existing benefits from your contracted-out arrangements (appropriate personal pension or contracted-out company scheme) which effectively replace the up to £37 (144 - 107) shortfall.

SnowMan

Someone else on another thread has mentoned that the strating credits only came in from 6/4/75, something I had overlooked, and which is indeed the case see this post

kidmugsy

SnowMan wrote: »

Someone else on another thread has mentoned that the strating credits only came in from 6/4/75, something I had overlooked, and which is indeed the case see this post

I


What you say is ambiguous: what do you mean by "only came in from 6/4/75"?

Goldenyears

kidmugsy wrote: »

I


What you say is ambiguous: what do you mean by "only came in from 6/4/75"?

I believe youth credits must have been retrospective. I was 28 in 1975. I had 42 years of actual employment to retirement age 61 and was credited with 49 years aged 65 which would be impossible with only the 4 credits from 61-65.

kidmugsy

I agree with you Goldenyears: the govt document seems to me to say that in 1975 the system of youth credit was introduced - so hard cheese if you retired in 1974. But if you retired after that you got the credit (until the recent change in the system).