Help Please, Home Responsibilities Protection question

nigelbb

linclass wrote: »

Nigel.
Yes, I could purchase years, but as it's in excess of £5k, I am not in a position to do that. The max would increase the pension to £154 p/w.

It's really going to be worthwhile to pay for those added years as you would get over £40/week (£2000/year) extra for the rest of your life. The payback would be under three years & the average life span of someone first drawing the state pension is about twenty years so your would get that £5K repaid many times over. If you can't afford it all in one lump sum you can pay a bit at a time by instalments & you have until 2023 to purchase these added years. Take a loan if necessary.

molerat

linclass wrote: »

Morning, these are the figures in full on the Gov.UK forecast:

No record to April 1975
1976 to 1980/81: NOT full
1981/82: FULL Year
1982/83: NOT Full
1983 to 2001/02: ALL Years full
2002 to 2007/08: NOT full
2008/09: FULL Year
2009 to now: NOT Full

It states: 23 years FULL contributions
1 year to contribute before April 2019
20 years when you did not contribute enough

It then states:
Estimate based on your NI record to 5 April 2018: £ 110.87 p/w

Forecast if you contribute until 5 April 2019: £ 115.65 p/w

I paid reduced NI stamp from 1975 to 11981.
I paid full NI stamp from 1981/82.

Does this help?

thanks

Going individually into those years will show how you achieved the full status and for the not full years if there are any weeks at all. Some of those not full years from 2006 could be part full and it will tell you how much each would cost to fill. You need to look at the years you were in receipt of child benefit and see if those years are full, if they are full by any method then there is nothing more you can do. You would not be eligible for HRP credits from 1978-79 to 1980-81 due to paying the reduced stamp.


So, looking at your op, the only year questionable is 1982-83 where you state you were receiving CB and not paying the reduced stamp but is not full.


What were you doing prior to 1975 to have no record ?


Another question posed from your op is

I officially start receiving my state pension on 19th November.

which is not possible, you can currently only become eligible for SP on the 6th of a month.

xylophone

I paid reduced NI stamp from 1975 to 11981.

Then no HRP credit for those years. See post 14 above.

1981-1982 was full ( whether by contribution or credit)

1982-83 is said to be not full - were you paying small stamp? Otherwise it may be worth investigating why no HRP credit. (Unless there was a credit to give you the 23rd year- see below.)

1983-2002 are full (probably by contribution rather than credit 83/88 as you were working full time).

In addition you have 2008/9 (so you did work one year between 2002 and the present).

I make that a total of 22 rather than 23 but let's assume that DWP are correct.

You do not mention ever having been contracted out.

On the old calculation, 23/30 X £119.30 would have given you £91.46 BSP @ 6/4/16.

You are likely to have had some Additional State Pension (SERPS/S2P) to add to this to make up your starting amount.

On the new calculation, 23/35 X £155.65 would have given £102.28 as a starting amount.

Whichever of those figures (old /new) was the higher would have been your starting amount for New State Pension.

It would have been increased since then under the "triple lock" (2.5% in 2017, 3% 2018, 2.6% 2019).

Your NSP forecast (assuming you started on new rules calculation) looks
about right on the figures given.

This means that if you want to increase it, you will need to make voluntary contributions.

xylophone

What were you doing prior to 1975 to have no record ?

OP mentions having had her first child in 1970 (age 16) and not starting work until she was 23 in 1977.

xylophone

Would be worth looking at the Pension credit calculator to check entitlement.

Indeed, although as the OP mentions that she more or less ceased paid employment after her 48th birthday, does not mention claiming any benefit and does not have substantial savings, it seems likely that there is a spouse about - GPC would be calculated on joint income.

linclass

bluenose1 wrote: »

HRP is a credit towards your State Pension so should have already been included in your State Pension calculation automatically. Unfortunately there is no HRP actual amount to claim.
It is unfortunate that you cannot afford the £5K as your State Pension will be £110.87 per week whereas it could be £154 per week. A reduction of £2,242 per year.

Though thinking about it depending on any other income you may qualify for Pension Credit.
For example if you are single and of State Pension age Pension Credit tops up your income to £167.25 per week. So you could just claim the lower amount State Pension and it would be topped up to £167.25.
Would be worth looking at the Pension credit calculator to check entitlement.

Sadly, I don't qualify for Pension Credit ...

linclass

nigelbb wrote: »

It's really going to be worthwhile to pay for those added years as you would get over £40/week (£2000/year) extra for the rest of your life. The payback would be under three years & the average life span of someone first drawing the state pension is about twenty years so your would get that £5K repaid many times over. If you can't afford it all in one lump sum you can pay a bit at a time by instalments & you have until 2023 to purchase these added years. Take a loan if necessary.

I don't agree with either credit cards OR loans, Nigel. Of COURSE it would be great if I could pay for those extra years, but it just is not an option.

linclass

xylophone wrote: »

Then no HRP credit for those years. See post 14 above.

1981-1982 was full ( whether by contribution or credit)

1982-83 is said to be not full - were you paying small stamp? Otherwise it may be worth investigating why no HRP credit. (Unless there was a credit to give you the 23rd year- see below.)

1983-2002 are full (probably by contribution rather than credit 83/88 as you were working full time).

In addition you have 2008/9 (so you did work one year between 2002 and the present).

I make that a total of 22 rather than 23 but let's assume that DWP are correct.

You do not mention ever having been contracted out.

On the old calculation, 23/30 X £119.30 would have given you £91.46 BSP @ 6/4/16.

You are likely to have had some Additional State Pension (SERPS/S2P) to add to this to make up your starting amount.

On the new calculation, 23/35 X £155.65 would have given £102.28 as a starting amount.

Whichever of those figures (old /new) was the higher would have been your starting amount for New State Pension.

It would have been increased since then under the "triple lock" (2.5% in 2017, 3% 2018, 2.6% 2019).

Your NSP forecast (assuming you started on new rules calculation) looks
about right on the figures given.

This means that if you want to increase it, you will need to make voluntary contributions.

Thanks, I draw a workplace pension of £270 p/m.

linclass

xylophone wrote: »

Indeed, although as the OP mentions that she more or less ceased paid employment after her 48th birthday, does not mention claiming any benefit and does not have substantial savings, it seems likely that there is a spouse about - GPC would be calculated on joint income.

Almost all correct xylophone, but I have a partner. I qualify for no benefits.

linclass

bluenose1 wrote: »

HRP is a credit towards your State Pension so should have already been included in your State Pension calculation automatically. Unfortunately there is no HRP actual amount to claim.
It is unfortunate that you cannot afford the £5K as your State Pension will be £110.87 per week whereas it could be £154 per week. A reduction of £2,242 per year.

Though thinking about it depending on any other income you may qualify for Pension Credit.
For example if you are single and of State Pension age Pension Credit tops up your income to £167.25 per week. So you could just claim the lower amount State Pension and it would be topped up to £167.25.
Would be worth looking at the Pension credit calculator to check entitlement.

It wasn't even on record that I have 2 children!! NOW aged 47 & 49 years old....