Enough NI contributions for a full state pension

george278

The Times newspaper states today that you must have 35 full years of contributions on your NI record to get the full state pension of £164.35 per week. I have checked my NI record on the GOV.UK website and I have 38 full years contributions. However, it states my current state pension estimate is £148.30 and I need to contribute another four years to bring it up to £164.35.

I’m confused about this discrepancy, anyone explain this for me?
I am 59 and have taken early retirement.
Thanks in advance

Dazed_and_confused

I haven't read the article so don't know if it just plain wrong or you have misunderstood but the 35 year rule really only applies to those starting on their journey to State Pension from April 2016.

For most people a transitional period applies and the 35 years is irrelevant.

You could have less years and get more than £164.35.

Or more years and get less.

GibbsRule_No3

Perhaps like me you were contracted out for some years. I have 48 years NI but will not get the full state pension because of the COPE. I have gained some years due to being under 66 but still working after April 2016 but from April this year until March 2020 when my SP age kicks in I will not get anything, if I had reached SP age in May or even after 8th April 2020 I would have been given the extra as well. You might be able to buy years to cover the missing ones.

p00hsticks

As Dazed And confused says, for those with years built up under the old system there are transitional rules in effect, to take account of the fact that previosuly there were two different NI rates applied depending on whether you were contracted in or out. .

Briefly, when the new state pension was introduced on 6/4/16, everyones 'starting amount' was calculated as at that date.

This was the higher of the two amounts as calculated under the old and new rules;

Old rules = (NI years up to maximum of 30) / 30 x £119.30 + any individual additional (S2P / SERPS) pension

New rules = (NI years up to maximum of 35) / 35 x £155.65 - any individual COPE (contracted out) amount.


Any NI year since 6/4/16 then simply adds 1/35th of the new state pension amount (around £4.70) to the starting amount up to the point where either the new maximum (currently £164.35) or the year preceding that in which state pension age is reached, whichever is sooner.

In your case, assuming you are of average health, buying or getting creditted with the extra post-2016 years you need to take you up to the maximum is very good value, as a one-off cost of around £750 gives you an additonal £4.70 a week for life.

(Credits are available if you are claiming certain benefits or if you are looking after e.g. grandchildren whist their parents go to work.)