Don't have 35 years NIC's.

Batman_100

Hi.

I'm raising this on behalf of my Mum. I've heard a little about the changes to the state pension which come into effect in April 2016 and I'm wondering how she'd be effected.

Basically, my Mum left school in 1977 and started a career in the civil service. During the 1980's she went on to work for two different private companies before being made redundant whilst on maternity leave shortly after I was born in 1990. Since then she hasn't worked (except for a brief part time job in the mid 90's) and has been a full time career for both my elderly grandfather (who sadly died a few years ago) and my disabled brother. She does claim carers allowance, but I'm not sure if this has added anything to her NI record.

Now, we'd always assumed that in retirement she'd have a stable income through being able to claim a pension based on my Dads NIC's record. But now the government want to end the ability to do this.

Do the government seriously expect my mum to face destitution in her old age if she outlives my dad?

bouicca21

Being in receipt of child benefit from 1990 counts as a national insurance credit, as does carers allowance.

calleyw

I don't want to appear rude but a quick google would have given the answer.

I found this on the CAB website in less than a minute.

You get credits for parents and carers automatically if you are receiving Child Benefit for a child under 12 or you are getting Carer's Allowance.

You mum needs to request her NI records to see how much of a short fall she will have if any. More info here:

https://www.gov.uk/check-national-insurance-record

Yours

Calley

Thrugelmir

calleyw wrote: »

I don't want to appear rude but a quick google would have given the answer.

I found this on the CAB website in less than a minute.

I don't want to appear rude but why do feel the need to point this out?

You could apply the same logic to a vast number of questions posed on MSE.

greenglide

Now, we'd always assumed that in retirement she'd have a stable income through being able to claim a pension based on my Dads NIC's record. But now the government want to end the ability to do this.

If your father is still alive and married to your mother, if he has an SPa date before 6/4/2016 then your mother can inherit a percentage of any GRAD / SERPS snd S2P he has.

If they are divorced, she is widowed or has an MWREE ("small stamp" from the days when this was allowed) there are transitional rules replacing substitution etc (CAT B /BL etc).

If the worst comes to the worst Pensions Credit will still exist to top up anyone whose total income falls below the standard nSP rate.

And she has a Civil Service pension?

Has she got a pension forecast from DWP?

xylophone

https://www.gov.uk/calculate-state-pension

Any pension provision from her private company employment?

Any pension provision from her Civil Service employment?

mgdavid

Thrugelmir wrote: »

I don't want to appear rude but why do feel the need to point this out? .....

'give a man a fish and he eats for the day; teach a man to fish and he eats for life'

jamesd

She should:

1. Use the free Pension Tracing Service to track down the old work pensions if she is not in touch with them. Both the Civil Service and the two private sector ones will probably have defined benefit pensions for her. If she doesn't remember the private company names, the Contracted Out Pensions Helpline should be able to give her details of each pension she was in that was receiving the contracted out rebates. She can than give that information to the Pension Tracing Service so they can get current contact details for them.

2. Get a State Pension Statement. That will tell her her core state pension entitlement but in her case there will be some deduction from the Additional State Pension part for being contracted out before 1999.

Starting work in 1977 and having a child in 1990 then presumably being the person Child Benefit was paid to for at least 16 years until 2006 means that she should have at least 16 + 13 = 29 years. She may also have a couple of years of Juvenile Credits. Assuming Carer's Allowance since 2006 she'll have more than 35 years counting and be entitled to the full flat rate pension less some contracted out deduction for the Civil Service and two work pensions.

It seems unlikely that relying on her husband's record would deliver or have delivered any benefit to a person in her situation, she's entitled to more already in her own right.

It's hard but I'll guess at her total pension income being perhaps £8,060 from the flat rate state pension less a few hundred of contracted out deduction, plus a couple of thousand from the Civil Service and company pensions, for a total of £10,000 or more a year. Don't just guess, though, she can get in touch and find out exactly what she'll get.

If that's not enough then she can consider options like downsizing or equity release to boost it.

Destitution doesn't look likely and she'll find that to at least some degree she's gaining from the state and the rest of us understanding that raising children and being a carer are things that are of value and should not penalise people in state pension terms in retirement.

theGrinch

I thought the rational! of MSE is to answer questions

kangoora

mgdavid wrote: »

'give a man a fish and he eats for the day; teach a man to fish and he eats for life'

give a man a fish and he eats for the day; teach a man to fish and he sits by the river drinking beer