Pension changes - can someone explain?

pimento

http://www.bbc.co.uk/news/uk-22423878

Can someone explain how this will work please?

I was born in 1960 and will qualify for a full old age pension when I retire (I've worked just about continuously since 1978) and will work until I retire at (currently) 67.

My husband does not work and hasn't paid any NI contributions. I have kept him since our marriage in 1986 (he hasn't claimed any benefits), so he will not qualify for an old age pension.

Does this mean that when I retire I will only get the single person's pension and he will get nothing? Or will there still be a married rate?

I'm a bit confused.

seven-day-weekend

There is not a 'married rate'.

I think under the latest scheme he can claim a 60% pension based upon your contributions. At one time it was only women who could do this, on their husband's contributions, now both genders can.

Linton

seven-day-weekend wrote: »

There is not a 'married rate'.

I think under the latest scheme he can claim a 60% pension based upon your contributions. At one time it was only women who could do this, on their husband's contributions, now both genders can.

But then there is the Cons latest wheeze to stop evil foreigners living off our taxes by stopping spouses who have never contributed getting a pension based on the primary earner's NI contributions. It seems this will also affect people such as your husband. See here

kidmugsy

Linton wrote: »

But then there is the Cons latest wheeze to stop ...

Mr Webb is a Libdem.

laurel7172

Does your husband have Home Responsibilities Protection, pimento (ie has any child benefit been in his name?)? If so, another 14 years of voluntary contributions could well replace that 60%.

McKneff

Is there any particular reason why he does not work or does not claim benefits.

bigfreddiel

McKneff wrote: »

Is there any particular reason why he does not work or does not claim benefits.

i wondered why as well - i guessed he had some disability that prevented him working and he was too proud to claim benefits, then i thought he may just be just far too lazy to do anything - apologies in advance if that's wrong.

fj

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf

seven-day-weekend

She doesn't say he has not claimed any Benefits, just that he hasn't PAID any NI.

To the OP - if he has been on qualifying Benefits he will be credited towards his State Pension.

jamesd

How old is your husband? First thing to do is get a State Pension Statement for him and find out what it says about his record. He'll probably get three years of juvenile credits whether he's worked or not.

Next it's possible to see how long it is until he reaches state pension age. If the new rules for spouses and new flat rate cut to pensions for employees come in he'd need a total of ten years of contributions to get any pension, then at that level he'd get 10/35ths of £144. The more years, up to 35, the more he'd get.

The statement should show that he can buy six past years today. If his age is the same as yours then by a state pension age of 67 it would be possible for him to get to 3 years juvenile plus 6 past years purchased + 13 years ongoing payments = 22 years and 22/35 of £144 = £90 a week.

There is some risk that the flat rate pension won't happen and the current rules for spouses might continue but at this point it seems prudent to:

1. Buy past years before they expire, there's a time limit on buying each year. It's also cheaper to buy more recent past years and that looks like a decent bit of speculating.
2. Start paying voluntary NI contributions now.

notbritishgas

pimento wrote: »

http://www.bbc.co.uk/news/uk-22423878

Can someone explain how this will work please?

I was born in 1960 and will qualify for a full old age pension when I retire (I've worked just about continuously since 1978) and will work until I retire at (currently) 67.

My husband does not work and hasn't paid any NI contributions. I have kept him since our marriage in 1986 (he hasn't claimed any benefits), so he will not qualify for an old age pension.

Does this mean that when I retire I will only get the single person's pension and he will get nothing? Or will there still be a married rate?

I'm a bit confused.

seven-day-weekend wrote: »

She doesn't say he has not claimed any Benefits, just that he hasn't PAID any NI.

To the OP - if he has been on qualifying Benefits he will be credited towards his State Pension.

In the OP.