35 years NI contributions

In_for_a_penny

Hello,
I’m 55 years old and hope to retire early (at 60). I’ve been in full time employment since the age of 19. Prior to that, I was in full time education. Looking at my NI record on the government website it indicates that I have 38 years of full contributions, 1 year when contributions were insufficient (maybe due to low paid part-time work?) and 12 years left to make contributions.

My official 'old age' retirement year is 2031.
The forecast indicates that I will qualify for the full state pension if I contribute another 3 years before 2031.
I thought that in order to qualify for a full state pension at retirement, you had to contribute for 35 years, which I have, so why does it state it is necessary to contribute for 3 more years?
Any advice would be helpful.
Thanks.

Dazed_and_confused

You've misunderstood the new rules.

35 years is only for youngsters, everyone else is under transitional rules.

Some need less than 35 years, some more.

Silvertabby

Winner, winner. You're on track to get the full single tier pension and your contracted out occupational pension, even thought you paid less than the full rate of NI for some of your contributory years.

Tom99

Dazed_and_confused wrote: »

You've misunderstood the new rules.
35 years is only for youngsters, everyone else is under transitional rules.Some need less than 35 years, some more.

Anyone retiring after April 2016 can get a full new pension based on 35yrs full contribution.
It's misleading to say it's only for youngsters.

molerat

Tom99 wrote: »

Anyone retiring after April 2016 can get a full new pension based on 35yrs full contribution.
It's misleading to say it's only for youngsters.

I have got 42 years, why am I not getting a full pension then ?


Please don't try to confuse, D&C's post was correct. Anyone with a pre 2016 history may or may not get a full new pension with any number of years more or less than 35.Those with only a post 2016 history will get a full pension with exactly 35 years of contributions.

Tom99

molerat wrote: »

I have got 42 years, why am I not getting a full pension then ?
Please don't try to confuse, D&C's post was correct. Anyone with a pre 2016 history may or may not get a full new pension with any number of years more or less than 35.Those with only a post 2016 history will get a full pension with exactly 35 years of contributions.

You are not getting a full pension because you have not made 35yrs full contributions.
As I said above anyone retiring after April 2016 with 35yrs full contributions* will get a new full pension. There is no may or may not about that.

molerat

My NI record shows me as having 40 full years contributions, why am I not getting a full pension then ?


Or are you confusing full years and non contracted out years. Someone with 35 non contracted out years, or full years as you call them, still may not receive a full pension if they have any contracted out service in addition to those 35.

colsten

Dazed_and_confused wrote: »

You've misunderstood the new rules.

35 years is only for youngsters, everyone else is under transitional rules.

Some need less than 35 years, some more.

Tom99 wrote: »

Anyone retiring after April 2016 can get a full new pension based on 35yrs full contribution.
It's misleading to say it's only for youngsters.

Tom99 wrote: »

You are not getting a full pension because you have not made 35yrs full contributions.
As I said above anyone retiring after April 2016 with 35yrs full contributions will get a new full pension. There is no may or may not about that.

It is simply not true that everybody retiring after April 2016 with 35 full NI years will get the full new state pension. Until about 2025-26, people might still have contracted-out deductions. Some will be able to eliminate with continued NI contributions. After 2025-26, there won't be any more contracted-out deductions.

This does not mean that, come 2025-26, people can stop paying NI contributions after 35 years because

1. NI contributions pay for more than simply state pensions.
   
   • I believe around a fifth of the annual NI contributions go to the NHS. Bereavement benefit, maternity leave and contributory JSA and ESA also get paid from NI contributions
     
     
   • IIRC, unless you have paid NI contributions in the preceding 2 years, you are not entitled to JSA or ESA. If you stopped paying NI after 35 years, this could leave you high and dry if you are out of a job and have no other income.
   
   
2. the state pension amount is based on the assumption that people pay NI contributions up to their state pension age. If they didn't, there would be less money to pay to pensioners. Even by people paying NI contributions up to their state pension age, the outlook for the NI Fund is bleak, because the number of pensioners will rise quite dramatically over the next 10-15 years, whilst the number of workers remains much the same.

This blog from Paul Lewis elaborates: https://paullewismoney.blogspot.com/2016/10/target-155-boost-your-new-state-pension.html

Tom99

Dazed_and_confused wrote: »

35 years is only for youngsters

I have been helping a 65yr old relative, they had 27yrs full contribution and topped up to 35yrs by making 8 yrs voluntary contributions. They now receive £168.60 per week based on 35yrs full contribution.

colsten

Tom99 wrote: »

I have been helping a 65yr old relative, they had 27yrs full contribution and topped up to 35yrs by making 8 yrs voluntary contributions. They now receive £168.60 per week based on 35yrs full contribution.

They clearly did not have any contracted-out deductions. That does not mean nobody else had them. The vast majority of people now coming up to state pension age were for some, or all, of their working lives in contracted-out schemes, whether in public or private sector ones.

GibbsRule_No3

I have full 49 years NI and I don't get a full SP either. I have gained three extra payments before SP kicks in next March.