Single Tier State Pension - qualifying years

mrschaucer

Just something niggling me, (and sorry, yes I know it's a bit nerdy):




Let's say that someone has (for simplicity's sake) five qualifying years under the "old" system, so when his starting amount for the single tier pension is calculated, the sum would be: £119.30 divided by 30 multiplied by 5, which would be £19.88 at current rates.
He needs, we are told, "10 years" to get any pension at all, but could someone tell me what "10 years" means? Is it
1) he needs to accrue ten thirtyfifths of the single tier pension amount ie £44.47? So he needs to get up to £44.47 from £19.88 at £4.45 per annum (all figures current) which would take him 6 years. So actually for him to get any single tier pension it's 11 years in all, NOT 10.
2) or is it that his pre-single tier five years actually do count as 5 years in the new system, and he only then needs a further 5 years to qualify - that would make him eligible to receive a pension at £19.88 plus (5 x £4.45) = £42.13?
Which way will they do it - "Years" or "starting amount plus yearly increments to bring you up to an amount equal to ten thirtyfifths of the pension". The literature seems to imply years, but I have my doubts. Any thoughts?

Linton

The starting amount for the new pension is the higher of that under the new and old rules. In your example I believe the new calculation is higher and so the pension is entirely covered by the new rules.

mrschaucer

I've decided that I'm over-thinking this. 10 years' NI contributions MUST just mean 10 years' NI contributions, no matter whether pre April 16 or post April 16. I clearly need something to eat ...

greenglide

Yes, it does mean 10 qualifying years to get anything. It makes no difference if the qualifying years are before or after 6/4/2016, a date which is rapidly approaching.

GunJack

greenglide wrote: »

Yes, it does mean 10 qualifying years to get anything. It makes no difference if the qualifying years are before or after 6/4/2016, a date which is rapidly approaching.

I read it that EXCLUSIVELY under the newSP, i.e. someone who only starts working and contributing post 6 Apr 16, would need minimum 10 years to get anything?? Under 10 years in the "old" system would qualify them for something of BasicSP, so that would be their Starting Amount for the newSP... can anyone definitively clarify?