State Pensions

bcfcjwb1

My understanding of the Pension Act 2007 is limited, so can someone confirm my assumptions are correct?

I am 38 and have worked full time for 21 years, and therefore have paid 21 years of NI contributions. I understand that I will be able to claim a full state pension at the age of 67 - assuming that I pay another 9 years of NI contributions by the time I am 67.

My wife is 34 and worked full time for 14 years until our son was born in 2004, and therefore has paid 14 years of NI contributions. She has HRP, which I understand gives her NI qualifying years until our son is 12, whether she works or not. I understand that she will be able to claim a full state pension at the age of 67 - assuming that she pays another 4 years of NI contributions after my son is 12 and by the time she is 67.

It's the 30 year contributions that I'm struggling with, it all sounds too good to be true - wasn't it 40 years previously?

seven-day-weekend

It changed to 30 years earlier this year, for those with a retirement date after 6th April 2010. Before that it was 39 years for women and 44 years for men.

My retirement date is January 2010, so I'm still on 39 years, (I've got 38 inc HRP), however I can still get my pension at 60. It's worked out well for my husband whose retirement date is 2014. He is not working and thought he would have to pay eight years of voluntary contributions to make up his 44 years, and now finds at a stroke he has more than enough!

bcfcjwb1

Do you know if I am right about the HRP for the first 12 years?

If I am right, my wife has just worked out that if we have another child now, she would effectively guarantee her 30 years contributions already!

14 years (Working) + 12 years (Child 1) + 4 years (Child 2 Overlap).

seven-day-weekend

I'm not sure how HRP works under the new rules. Somone will be along later who can tell you.

Here's a link about the changes. It seems to suggest that you are correct about HRP if I've understood it correctly:

http://www.pensionsadvisoryservice.org.uk/Miscellaneous/Pensions_Bill/index.asp

roddydogs

Great- i worked for 49 years paying full stamp, now you only need 30 years!!!!!!!!!!
seriously before anyone asks-you cant stop paying when you get to 30 years, you still have to pay the full amount if your earning. Yes there are some people who think otherwise!

EdInvestor

roddydogs wrote: »

Great- i worked for 49 years paying full stamp, now you only need 30 years!!!!!!!!!!

The measure isn't really aimed at people who work full time, but at people who have broken or less-than-optimal employment and NI records because they have other duties, usually caring for sick/disabled/elderly family members.This work saves the taxpayer a massive amount of money and certainly should be recognised, it was a disgrace that these carers were actually being penalised for "not working" for so long :mad:

You can see the effect from the figures, currently 87% of men are entitled to the state pension, for women it's around 35%.The new rules will increase the female percentage to around 70%, mainly because the entitlements will be calculated differently (on a weekly, not annual basis) and the target reduced.

But the beneficiaries will have to retire later, so women like 7DWE will get more state pension actually paid out for her extra contributions. As of 2010, BTW, men who have a poor NI record will be able to claim a 60% pension based on the wives contributions.:)

It seems to me these new measures will actually make the system fair, which it certainly hasn't been for many years.

maypole

You get automatic credits for HRP but I am not sure if it is for children under 12 or 16, You can check with the Future pensions DWP 0845 3000 168.
Apparently you cant get a forcast on line if your pension is due after 2010, they are updating computers and it won't be available again until autumn 2008

EdInvestor

bcfcjwb1 wrote: »

Do you know if I am right about the HRP for the first 12 years?

If I am right, my wife has just worked out that if we have another child now, she would effectively guarantee her 30 years contributions already!

14 years (Working) + 12 years (Child 1) + 4 years (Child 2 Overlap).

That looks corre3ct: max of 22 years HRP under the new rules.

roddydogs

EdInvestor wrote: »

The measure isn't really aimed at people who work full time, but at people who have broken or less-than-optimal employment and NI records because they have other duties, usually caring for sick/disabled/elderly family members.This work saves the taxpayer a massive amount of money and certainly should be recognised, it was a disgrace that these carers were actually being penalised for "not working" for so long :mad:

You can see the effect from the figures, currently 87% of men are entitled to the state pension, for women it's around 35%.The new rules will increase the female percentage to around 70%, mainly because the entitlements will be calculated differently (on a weekly, not annual basis) and the target reduced.

But the beneficiaries will have to retire later, so women like 7DWE will get more state pension actually paid out for her extra contributions. As of 2010, BTW, men who have a poor NI record will be able to claim a 60% pension based on the wives contributions.:)

It seems to me these new measures will actually make the system fair, which it certainly hasn't been for many years.

So if ive got 30 years, and go on the dole for the rest the time beacause im a Lazy B........... i wont get a full pension?

seven-day-weekend

roddydogs wrote: »

So if ive got 30 years, and go on the dole for the rest the time beacause im a Lazy B........... i wont get a full pension?

Yes - I think you will. You will get the contributions credited.

(Although the Jobcentre may start to wonder why you haven't managed to find a job in 30 years!).