State pension blooper

McKneff

mumps wrote: »

Actually I can see the OPs point of view. If I understand correctly she has paid 46 years contributions and only 7 of them were contracted out. Someone who has paid full NI for fewer years wouldn't be penalised, she paid NI without being contracted out for 39 years which is more than you need for a full state pension. I think it is quite easy to see why she didn't understand.

I don't understand what the married women's stamp has to do with it?

Every one who worked from leaving school at say 15 and paid NI till retirement 60/65 would pay more than was required in NI. Women would pay for 45 years and men would pay for 50 years, even though the requirement was only 39 years NI contrubutions.

mumps

McKneff wrote: »

Every one who worked from leaving school at say 15 and paid NI till retirement 60/65 would pay more than was required in NI. Women would pay for 45 years and men would pay for 50 years, even though the requirement was only 39 years NI contrubutions.

But not everyone has. I have worked since 15 and I am currently 61 so I am on 46 years. Many of my friends were mothers who didn't work outside the home and some are struggling to make the 30 years mark.

I know one woman who started work at 21 after university and then lived abroad for 20 years.She just makes the 35 years, she is working since 41 retires at 65 or 66 so say 25 years and then she gets credits for her time in education. At least I think that is how she explained it to me so she will have made fewer contributions than OP but will get more for her pension. Thems the rules but I can see why OP is surprised. Actully tht doesn't add up for my friend, I must ask her to explain it again.

JezR

McKneff wrote: »

Every one who worked from leaving school at say 15 and paid NI till retirement 60/65 would pay more than was required in NI. Women would pay for 45 years and men would pay for 50 years, even though the requirement was only 39 years NI contrubutions.

For a basic pension. Additional pensions would accrue from all the contributions years they were in force. For someone retiring today with 46 years of contributions, they would have paid Grad from 1969-75, SERPS from 1979-2002, and S2P from 2002. So there would be additional pension of one kind or another related to 43 of the 46 years if not contracted out.

PennyForThem_2

Those who had children and stayed at home:


Was your family allowance paid to the mother? If so I am pretty sure this counts towards years earned.


If it was paid to husband/partner maybe not.

seven-day-weekend

PennyForThem wrote: »

Those who had children and stayed at home:


Was your family allowance paid to the mother? If so I am pretty sure this counts towards years earned.


If it was paid to husband/partner maybe not.

Only after 1978 I believe, and it counts towards the mother's Pension only if it was claimed in her name.

seven-day-weekend

xylophone wrote: »

You get more than the BSP which is currently £115.95.

The difference is probably made up of some Graduated Pension and some S2P.

S2P gives all employees earning up to a certain amount a larger pension than SERPS, regardless of whether they are "contracted out"

Yes I have a small amount of SERPs and S2P on top of the basic State Pension, plus my Local Government Pension.

I'm not actually sure what the OP's gripe is? Does he/she feel that they have somehow lost out?

molerat

A correct assumption I believe, not getting the £151.20 per week.

Mrs M is a winner. She has 27 years + 27p of grad so trades in that 27p for 27 x 46p.

mumps

seven-day-weekend wrote: »

Yes I have a small amount of SERPs and S2P on top of the basic State Pension, plus my Local Government Pension.

I'm not actually sure what the OP's gripe is? Does he/she feel that they have somehow lost out?

As I read it she thought as she paid non contracted out NI for the required 35 years she would get the full pension.

This applied to the "old" "current" pension I believe. So for you the years you were contracted out the years still counted towards you State Pension but you didn't get any SERPS S2P for them she doesn't get anything for them.

It seems an easy mistake to make.

schojac_2

I'm not actually sure what the OP's gripe is? Does he/she feel that they have somehow lost out?[/QUOTE]

At first yes I did feel that I had lost out, but that was down to pure ignorance of the system and only now, after 46 years of contributing, am I beginning to understand the implications and my misconceptions.

I wonder how many people who intend to cash in their pension pots are unaware that if they also contracted out, will possibly not get the £150 as I assumed. Too late once it's done.

green_man

These calculations certainly confuse me and do not seem to be correct.

Surely in the OPs case they should get the full basic pension (£116 ish). then for the Sp2 element they have missed 7 years out of 35 so I would expect the serps element to be reduced by 1/5. But a £30 reduction is 1/5 of the whole pension not just the Serps element. ?