Pension for wife (non-earner) help please!

greenglide

But she will have a starting amount in April of £42 or so because under the old-style calculation there was no minimum number of years.

But to actually be paid the starting amount you need at least 10 years under the old or the new rules.

They are one of the real losers under this.

neilvw

greenglide wrote: »

But to actually be paid the starting amount you need at least 10 years under the old or the new rules.

They are one of the real losers under this.

Yes, indeed you are correct:

Calculations will be made based on your National Insurance record as at 6 April 2016. These calculations will compare the amount of State Pension you may get based on:
• The new State Pension rules; and
• The existing State Pension rules.
The higher of these two amounts will become your ‘’Starting Amount’’ for the new State Pension system.
Both calculations will take into account periods of time when you were contracted out of the additional State Pension, because whilst contracted-out of SERPS or State Second Pension you either paid National Insurance at a lower rate or some of your National Insurance contributions were used to contribute to a private pension instead of the Additional State Pension.
This is the minimum amount you will receive of the new State Pension, provided you meet the minimum requirement of 10 qualifying years when you reach State Pension age. If you start the new State Pension with less than the full amount, you may be able to build up further pension under the new system.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/486479/state-pension-stakeholder-questions-and-answers-161215.pdf (p. 6)

So her starting amount will only be preserved if she gets another year credited (pre- or post-2016) by age 67 although there is ample time and opportunity to in this case. I've learned something new today.

Seems a trifle against the spirit of the transitional arrangements, but the savings have been recycled elsewhere.

atush

neilvw wrote: »

This is true, and on further investigation it appears it was dropped from the Taxation of Pensions Bill. It might appear in the Finance Act this spring I suppose.

Anything 'might' happen. So best not to mention it?

atush

greenglide wrote: »

But to actually be paid the starting amount you need at least 10 years under the old or the new rules.

They are one of the real losers under this.

Exactly. Which is why i mentioned the 10 yr rule earlier as neil and others think less is protected.

I was told it was not, by the pension dept.

neilvw

atush wrote: »

Anything 'might' happen. So best not to mention it?

Well it is stated Government policy, so one would think it would be legislated for (or formally abandoned) sooner rather than later, but we'll have to see.

neilvw

atush wrote: »

Exactly. Which is why i mentioned the 10 yr rule earlier as neil and others think less is protected.

I was told it was not, by the pension dept.

Apologies for my misunderstanding.

In practice however, anyone with 1-9 years can resurrect their starting amount by making up the remainder of the 10 years in voluntary contributions (2006-2016) by 2023. Or by working / getting credits in the remaining years before SPa. So I don't think it's really much of a problem?

I remember Steve Webb saying it would mainly affect people who move to the UK to work late in life.

atush

As may be, but you made the point it was law, and it is not.

It is just, at this point, a proposal.

neilvw

atush wrote: »

As may be, but you made the point it was law, and it is not.

It is just, at this point, a proposal.

I never said it was law. I said it was Government policy, which - until we hear to the contrary - it remains.

greenglide

I remember Steve Webb saying it would mainly affect people who move to the UK to work late in life

The classic case is two people, one with SPa 5/4/2016 and the other has SPa 6/4/2016, both have 9 years contributions from the last 9 years.

One gets 9/30 of basic pension plus any S2P accrued, the other gets nothing.

Whether the nSP one can make any voluntary contributions when gaps in the record are over nine years ago, I don't know.

neilvw

greenglide wrote: »

The classic case is two people, one with SPa 5/4/2016 and the other has SPa 6/4/2016, both have 9 years contributions from the last 9 years.

One gets 9/30 of basic pension plus any S2P accrued, the other gets nothing.

Whether the nSP one can make any voluntary contributions when gaps in the record are over nine years ago, I don't know.

The nSP one can fill gaps from 2006/07 to 2015/16 - ten years. Perhaps that is deliberate for this reason.