Calculating State Pension

caveman38

My wife was born in 1954 and has 48 years NI contributions with none contracted out. She will receive her SP at the end of 2020.
Her forecast shows 174.11 which is greater than the current max of 168.60 assuming next years 3.9% increase hasn't been added.
I have read about basic, starting and additional pension and would like someone to explain whether she has qualified for more on the basis of number of years of contributions under the "old scheme"
Please explain - if I make sense


Edit - Should read 48 years of full NI contributions

nigelbb

caveman38 wrote: »

My wife was born in 1954 and has 40 years NI contributions with none contracted out. She will receive her SP at the end of 2020.
Her forecast shows 174.11 which is greater than the current max of 168.60 assuming next years 3.9% increase hasn't been added.
I have read about basic, starting and additional pension and would like someone to explain whether she has qualified for more on the basis of number of years of contributions under the "old scheme"
Please explain - if I make sense

She must have qualified for a larger amount under the old scheme including SERPS.

caveman38

I thought that myself except, I am unable to get the info to be able to work it out. She was working from 1972 till 1978, raised children from 1979 ( I don't know if that makes you eligible for NI credits) and returned to work in 1987. Her record shows 48 years of NI contributions.
Any ideas?

atush

Was she claiming Child benefit in her own name? This can give NI credits, although not sure when this started. Someone here will know or you can look it up.

As said above, she may have extra due to Serps/S2P

caveman38

atush wrote: »

Was she claiming Child benefit in her own name? This can give NI credits, although not sure when this started. Someone here will know or you can look it up.

As said above, she may have extra due to Serps/S2P

Yes, Child Benefits in her name.


Edit - Should read 48 years of full NI contributions

hyubh

caveman38 wrote: »

Her forecast shows 174.11 which is greater than the current max of 168.60 assuming next years 3.9% increase hasn't been added.
I have read about basic, starting and additional pension and would like someone to explain whether she has qualified for more on the basis of number of years of contributions under the "old scheme"

Because she was contracted in and therefore accrued SERPS/S2P. Merely additional years wouldn't allow accruing above the old basic state pension.

LHW99

For some of the time she was non-working she may have been getting the old "Home Responsibilities Protection". You didn't apply for it, and it seemed to work rather like the "NI credit" system we now have in respect to SP, although I think there were some differences in details - I believe it didn't actually give credits, but could "make up" years to ensure you got at least a minimum pension, and wasn't calculated until just before retirement.

caveman38

Her statement shows 48 full years NI contributions. What I am confused by is that wherever I look, there seems to be a statement that says you cannot get extra pension ie. SERPS if you retire after 2016.
I'm sure she's not too worried about getting more than the £168.60 (as it is for 2019/20) but it'd be nice to know why - without ringing them.

Dazed_and_confused

I think you are confusing when pension can be accrued and what can be paid.

You cannot accrue it after 2016.

But she got hers before 2016.

caveman38

Dazed_and_confused wrote: »

I think you are confusing when pension can be accrued and what can be paid.

You cannot accrue it after 2016.

But she got hers before 2016.

Thanks, I see (I think).

nigelbb

caveman38 wrote: »

Thanks, I see (I think).

In round figures the old basic pension was £120/week & you needed 30 years of contributions. She must have earned about £50 SERPS so when they calculated her pension as it would have been in 2016 then she was already over £170. She couldn't accrue any more. If she had less due from SERPS she might have been able to accrue more after 2016 but would never be able to exceed the single tier pension (currently £168.60 for 35 years contributions).