3 years to qualify for full SP. Can that be right?

sweetmelody

I've just checked my state pension forecast via one of the links often posted here.


It states that I am on track for the full state pension in 2039, and that I need 3 more years of NI contributions to achieve qualification.


However, I'm 46 and been in full time work since I was 21. That will mean 24 years of contributions in 3 years time. How does this reconcile with the oft-quoted 35 years minimum requirement? Could it be due to the part time jobs I had during secondary school and university that has accelerated things for me?

Linton

Were you contracted into SERPS?


I am not sure whether the numbers would work out, but if you were well paid and contracted into SERPS/S2P/ASP prior to 2016 perhaps you could have accumulated significant extra pension to set your accrued SP between the old and new full rates, If you were in that position at the April 2016 switch-over then after 2016 you can only increase your pension up to the new level.


Or of course HMRC could be wrong or you could be confused.

xylophone

At 6/4/16 two calculations were done

NI years/30 x £119.35 + (Additional State Pension - any deduction for contracting out)

NI years/35 x £155.65 - COPE (if ever contracted out).

Your starting amount was the higher of the two.

If you had a high additional state pension, it is quite possible that you need very few years to bring you up to full new state pension.

Once you have reached full NSP although you will still pay NI (if working and earning the relevant amount), your NSP will only increase by the appropriate index linking factor applied.

https://www.gov.uk/new-state-pension/how-its-calculated

molerat

35 years is only truly for those starting their journey from April 2016. Everyone with a prior history is on a hybrid scheme. At April 2016 you were given a starting amount which was the higher of the old or new calculations and with additional pension which was earned from non contracted out employment the old scheme calculation could be way ahead of the new scheme amount.

sweetmelody

Thanks everyone - all makes sense. I cant answer the questions about if and when I was contracted in our out of SERPS. However, I didn't realise that the SP forecast site allows you to check your full NI history. According to this, I have 28 full years from the age of 15 from paid employment and/or NI credits (Saturday and holiday jobs?) and 3 part years which corresponding to when I was at university (although I did work part time during these years too). 2018/19 will make 29 full years. If I only need 3 years between now and my SRA as per the forecast, that will mean 31 years in total which suggests my average per annum entitlement has been increased by contributions to SERPS (that I don't recall)

sweetmelody

Ahh my COPE estimate is £26.28 per week

sweetmelody

And my current SP forecast (with 3 additional years required) is £152.29


I cant reconcile this based on xylophone's post

Silvertabby

Not absolutely clear if your foundation amount (as at April 2016) was calculated under the old or new rules - but you have the benefit of being able to accrue the maximum possible State pension (with the payment of 3 more years) despite having been contracted out of SERPS/SP2 at some point.

Which contracted out pension scheme were you in? Depending on the scheme rules, you may be able to access this from 55.

sweetmelody

I'm afraid I don't know. I worked for Cable & Wireless plc and BT plc for 10 years in total and may have been contracted out with either or both. I could contact them to find out as interested in finding out more about access at 55.

How do I find out more about my additional state pension entitlement (which was referred to in xylophone's post)?

xylophone

has been increased by contributions to SERPS (that I don't recall)

SERPS was the State Earnings Related Pension Scheme (1978-2002).

S2P was the replacement from 2002 - 2016.

Together they make up Additional State Pension.

It would seem that for some part of your working life you were contracted out of ASP but it would appear that you were contracted in for the balance.

In both calculations a deduction will have been made for your contracted out period but it would seem that your ASP after this deduction was still enough to bring you close to a full NSP.

https://www.which.co.uk/money/pensions-and-retirement/state-pension/your-state-pension-and-benefits/state-second-pension-and-serps-ad9mc1v6fq6t

xylophone

Cable & Wireless plc and BT plc for 10 years

Which will account for your COPE.

C&W had a defined benefit pension scheme as did BT - you will have been contracted out while in these schemes.

You have a deferred pension from both?