Do I need 35 years NI contribs if previously contracted out?

itm2

I'm 58 and retired from my job (although do still generate small amounts of income). I have 30 years NI contributions, and have previously contracted out for a couple of years (about 15 years ago).
The government site at https://www.tax.service.gov.uk/check-your-state-pension tells me that my state pension forecast is £169.16 a week, and that "£169.16 is the most you can get. You cannot improve your forecast any more."
Until now, I always thought that I needed 35 years of contributions to qualify for the full state pension (and have been making voluntary contributions for the last few years to top up).
I know that the rules changed in 2016, but don't fully understand why I no longer need 35 years contribs to qualify for a full state pension. Is it because I somehow accrued additional state pension benefits along the way, and that these pushed my entitlement above the standard state pension?
If so, can I safely cease making additional voluntary contributions on the grounds that they will never improve my state pension entitlement?

drumtochty

For the years you were "contracted in" you were probably on a good wage / salary and the second state pension and SERPS you earned in those reasonably well paid "contracted in" years has done you well.


I was "contracted out" for 22 years but still get £175 a week state pension.

itm2

Thanks - I thought that might be the case. So can I safely cease AVCs?

jem16

itm2 wrote: »

The government site at https://www.tax.service.gov.uk/check-your-state-pension tells me that my state pension forecast is £169.16 a week, and that "£169.16 is the most you can get. You cannot improve your forecast any more."

Your entitlement would have been worked out at April 2016 under both old and new rules - you get the higher of the two calculations which was £169.16 from what you say.

I hope you haven't been contributing to tax years 2016 onwards as it will have been a waste of money as it won't have increased your pension?

itm2

jem16 wrote: »

Your entitlement would have been worked out at April 2016 under both old and new rules - you get the higher of the two calculations which was £169.16 from what you say.

I hope you haven't been contributing to tax years 2016 onwards as it will have been a waste of money as it won't have increased your pension?

Uh...yes I'm afraid I have. I wish I'd asked this question before I filed my tax return a few weeks ago!

jem16

itm2 wrote: »

Uh...yes I'm afraid I have. I wish I'd asked this question before I filed my tax return a few weeks ago!

You should be able to amend this tax return at least so I suggest you try.

I have no idea if you can ask for 2016/17 to be refunded but perhaps worth trying.

It's a pity you didn't check with the Future pension Centre before making any voluntary contributions.

itm2

I just went through my contribution history on the government site and it seems that my 30th year of contribution was 2018, so it looks like I didn't overpay after all :0)

molerat

itm2 wrote: »

I just went through my contribution history on the government site and it seems that my 30th year of contribution was 2018, so it looks like I didn't overpay after all :0)

You have overpaid, anything post 2016 did not count. In April 2016 you were given a starting amount, a monetary value, and if that exceeded the new pension maximum, which it did in your case, any post 2016 contributions would be of no value. 30 or 35 years was of no relevance once that calculation was complete. If you have less than 30 pre 2016 years but all the 2006-16 years are full then nothing you do can increase the pension. There is a case for the reclaim of voluntary contributions that were paid on the false assumption that they were adding to your entitlement.

itm2

molerat wrote: »

You have overpaid, anything post 2016 did not count. In April 2016 you were given a starting amount, a monetary value, and if that exceeded the new pension maximum, which it did in your case, any post 2016 contributions would be of no value. 30 or 35 years was of no relevance once that calculation was complete. If you have less than 30 pre 2016 years but all the 2006-16 years are full then nothing you do can increase the pension. There is a case for the reclaim of voluntary contributions that were paid on the false assumption that they were adding to your entitlement.

Thanks for that. I'll investigate how I can raise a claim with HMRC.

Sea_Shell

How old do you have to be to get a state pension forecast?

molerat

Sea_Shell wrote: »

How old do you have to be to get a state pension forecast?

Anyone who has a NI history can get one. If less than 10 years contributions I believe it can be a bit of a muddle though.