35 years NI contributions

Silvertabby

GibbsRule_No3 wrote: »

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.

This is where the confusion lies - when DWP say full years, they actually mean full financial years, not full contribution years - ie, didn't pay reduced NI on account of being contracted out.

I retired at 60 with over 40 years of NI contributions, of which 38 years were contracted out. I, too, (quite rightly) won't receive the full single tier pension without making some voluntary Class 3 contributions.

molerat

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.

On a sample size of 1 you have incorrectly come to the conclusion that everyone with 35 years of contracted in contributions will get a full pension which simply is not the case. The correct conclusion was that their particular circumstances and history allowed them a full pension with 35 years contributions. The only ones guaranteed that are those starting out post 2016.

jazzy

Question, If someone has 35 years of NI contributions and is therefore entitled to a full state pension. What happens if the government increases the number of years of NI contributions and you are already receiving your full state pension, is your state pension then reduced?

xylophone

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.

At 6/4/16, two calculations were done - if your relative was never in a contracted out pension scheme then his were

(NI years/30 x £119.30) + Additional State Pension

(NI years/ 35) x £155.65.

His "starting amount" was the higher of the two.

Assuming that he was not working and paying (or being credited) with NI, then he could make voluntary contributions to increase his NSP.

See https://www.royallondon.com/siteassets/site-docs/media-centre/good-with-your-money-guides/topping-up-your-state-pension-guide.pdf

colsten

jazzy wrote: »

Question, If someone has 35 years of NI contributions and is therefore entitled to a full state pension. What happens if the government increases the number of years of NI contributions and you are already receiving your full state pension, is your state pension then reduced?

You would expect that existing recipients would not be affected.

However, please read this thread: 35 years does not necessarily entitle you to a full new SP.

colsten

molerat wrote: »

On a sample size of 1 you have incorrectly come to the conclusion that everyone with 35 years of contracted in contributions will get a full pension which simply is not the case. The correct conclusion was that their particular circumstances and history allowed them a full pension with 35 years contributions. The only ones guaranteed that are those starting out post 2016.

Did you mean those starting out post 2026? 2025-26 or 2026-27? I think it is post 2025-26, i.e. after 5/4/2026.

molerat

colsten wrote: »

Did you mean those starting out post 2026? 2025-26 or 2026-27? I think it is post 2025-26, i.e. after 5/4/2026.

????
My comment was that only those starting their NI accumulating journey post April 2016 is guaranteed a full new pension with 35 years of contributions.

Dazed_and_confused

Have inadvertently confused things here!

When I said

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

what I really meant was that the new system, where 35 years gets you the "new" State Pension of £168.60, only applies to those starting on their journey to SPA from April 2016.

Everyone else comes under the transitional rules where "35 years" strictly doesn't count for anything.

You have to look at your starting amount, as already explained by xylophone. Some may get £168.60, or more, with less years. Some will need additional years NI contributions to get to the £168.60.

colsten

molerat wrote: »

????
My comment was that only those starting their NI accumulating journey post April 2016 is guaranteed a full new pension with 35 years of contributions.

Sorry, I misunderstood what you meant; I understand now. Whilst it is true that those starting their accumulating after April 2016 will be 'guaranteed' (as far as guarantees for state pensions go!!) the full rate, they are by no means the only ones who can have a 'guaranteed' full new state pension.

Many of those who already had many (30-35) NI years in April 2016, and who still had several years before reaching their state pension age, will almost certainly be entitled to the full new state pension amount, even if they had been in contracted-out schemes for most of their working life. I can't find the study now but I recall seeing the conclusion that the vast majority of new retirees will start out on the max new rate by around 2026.

There are also those who were never contracted out and have clocked up at least 35 years - they are already getting the max new state pension as we speak.

Audaxer

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.

I've got over 40 years of full NI contributions and have 5 years to go before I receive the SP. I am retired but I still need to make voluntary contributions for the next 5 years to get the full £168 per week, because like many others I was contracted out.

Like you and many others, I had assumed until a year or so ago when I checked my online statement, that because I had made over 35 years contributions I would get the new full SP, but it is definitely not the case for me and many others that were contracted out.