Husband buying 'missing years' NI

Beenie

My husband has four missing years on his NI record. He has made enquiries about the cost of buying these years, and the extra NI retirement pension it will provide. I think he will be going ahead with this purchase as it reperesents a good deal in his ipinion.

My question is related to my pension: because I paid the married womans reduced rate, my pension is dependent on my husband's contribution record.

I know he will get an increased NI pension if these extra/missing years are bought, but does that mean that my portion of the pension will increase also? My understanding is that I will get 40% of his pension (not in my own right but paid to him on my behalf) so any increase he receives will automatically affect the amount paid for me. Is this correct?

I'm asking because it seems to good to be true - a flat payment of £700 (approx) for each outstanding year will give him a further £30 per week in pension. That is loads better than investing a similar sum in a bank.

greenglide

I know he will get an increased NI pension if these extra/missing years are bought, but does that mean that my portion of the pension will increase also? My understanding is that I will get 40% of his pension (not in my own right but paid to him on my behalf) so any increase he receives will automatically affect the amount paid for me. Is this correct?

I assume you have yet to reach SPa?


The changes for NSp did away with the ability to receive a pension based on the spouses contributions. Your spouse will not receive any money "for you". Are you thinking of the Adult Dependent Increase (ADI)? That started being phased out some years age and end completely next year (I think). New claims cannot be made for it.


If you had an MWRRE then you can get pension that lays about 60% or so of the full rate but this is a flat rate, it is not increased by your husband's contributions.


Have you checked the pension that you have accrued? It may well be that additional years paid yourself could be worthwhile?

Beenie

Yes, neither of us are state pension age yet (63 and 64).

When you say that earlier changes did away with the ability to receive pension based on the spouses conts, I assume this definitely relates to women in my position who paid MWRR? This seems odd as the whole basis of MWRR was that your pension would be based on the husband's conts....how can it be changed when you have been paying reduced conts (for 40 years in my case) in the expectation of a smaller pension but based on his final pension entitlement?

If it's the case that I will get 60% of a flat rate pension (that is generic, and not based on his pension) then I suppose I am OK with that but in that case shouldn't I get my state pension when I reach pension age and not when he reaches pension age?

Asghar

Beenie wrote: »

I'm asking because it seems to good to be true - a flat payment of £700 (approx) for each outstanding year will give him a further £30 per week in pension. That is loads better than investing a similar sum in a bank.

Buying National Insurance contributions for any missing years is usually an extra £4.70 a week pension, for each year.
That's if actually buying those missing years will make a difference.

Have you both checked your state pension forcast on the Government website?

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

xylophone

You should both obtain a new state pension forecast. See post above.

See https://www.thisismoney.co.uk/money/pensions/article-5585425/What-state-pension-married-woman-retirement.html

See also page 15

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf

molerat

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs19_state_pension_fcs.pdf
Go to 8.4

greenglide

shouldn't I get my state pension when I reach pension age and not when he reaches pension age?

You have always been going to get your pension when you reach SPa. The old CAT B supplement did, I think, require your spouse to reach SPa as well.


The changes for nSP gives the 60% bit irrespective of the spouse reaching SPa.


You really should get a pension forecast.

Beenie

thanks for the help, particularly xylophone's links. It's enabled me to understand the revised system a bit better. And I will get a pensions forecast as suggested.

buglawton

Asghar wrote: »

Buying National Insurance contributions for any missing years is usually an extra £4.70 a week pension, for each year.
That's if actually buying those missing years will make a difference.

Have you both checked your state pension forcast on the Government website?

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

I've used this link in the past to get details on missing years contributions for DW. To actually confirm and pay them required torturous phone calls with the pensions service. They refused/failed to put anything in writing either in snail or e-mail, all we have to go on is a bank transaction with the stupidly lengthy ref number they dictated over the phone. Next year we'll go back to the website and check the contributions gap was correctly plugged. I suggest put these calls on speakerphone and use a 2nd phone to record the conversation as evidence.

All in all the system is a scandal worthy of a You and Yours feature (BBC Radio money advice programme).

OldBeanz

I found it rather easy to pay. I knew I needed to pay; they asked if I was sure or able to pay cheaper stamp; I paid; they gave me a reference number which I duly typed into my computer; was told to check online 2 weeks later; checked and year's credit was there; all's well. Any future issues and the reference can be taken from my bank account.
There have been refunds for those who erroneously paid for years which did not benefit them.

buglawton

My experience was that the with first few attempts the phone wasn't answered in the queuing system. Had to try on several different days. I do the call on behalf of DW who finds the process too technical and she has to be on the call to give permission. Luckily I work from home some days so could do it during the Pension Service's weekday office hours. Otherwise it'd be a half day off job. I'm puzzled that the process can't be done online like driving licences, passports and tax returns. Can only assume that the Pension Service doesn't trust its own system so needs a human on hand on their side.