Parents with no pension, I’m a higher earner

LHW99

Goodproblems said:

Meaningless in the sense that the £175.20 amount is what the maximum state pension could be, which is not unique to my circumstances? Maybe it’s not meaningless and I am missing something here!

The new state pension no longer has a salary-related component. You either get the maximum, or you get less, depending on how many years you have (from now on - those with a lot of years pre-2016 it can be more complicated).

It is personal because it tells you what you have to date (£78.18) if you stopped working now and paid no more NI, and it tells you you should be able to reach the maximum before you retire, as long as you work and contribute for another 20 years.

xylophone

Meaningless in the sense that the £175.20 amount is what the maximum state pension could be,

No. If you contribute for the next twenty years, you will have qualified for a full new state pension at your state pension age of the full rate then current.

For example, take a man who obtained a state pension forecast in May 2016 in anticipation of reaching his state pension age in May 2021.

Let's say that his forecast was for £155.65 (full NSP 2016-17).

He would have been told that he could not improve his forecast any further even though (if working and earning the relevant amount) he would still be paying NI.

This did not mean that the state pension he would receive in May 2021 would be £155.65 - it would be the full state pension at the rate prescribed for the year 2021 - 22 (£179.60)

Goodproblems

Sorry, I meant that the amount was the current maximum state pension amount (obviously that number will go up in future). I just meant that the top number represents the max state pension so it didn’t feel unique to me, but I guess it is still confirming that I’m in the running for the full amount rather than a lower amount because I haven’t enough years of contributions to date and don’t have enough time before retirement age to make up for any gaps.

Goodproblems

The £78.18 amount is of course personal and I took that as the significant take away   

mark55man

Good luck with whatever you decide and good for you for trying to be proactive, only you know your family and you can decide what's best.  All the other posters are trying to do is point out the risks they have seen happen, but it is the nature of these things that there is more talk about these risks than likelihood they would happen. 

Your relationship with your siblings is the main thing,  as that is where the fall out is likely to be.  If you are happy that is squared away I think any solution that helps your parents get out their predicament would be a win, so long as you can be comfortable that the changes to values and relationships that happens over time doesn't erode.

Goodproblems

Thanks @mark55man! The most helpful outcome of the very thoughtful conversations we’ve had on this forum has been triggering an open discussion amongst the relevant parties in my family. More information and an understanding of each other’s plans and intentions can only help in our circumstances. We also have an action plan: the number one priority is to get wills and lasting powers of attorney done. That step alone should help focus the mind, away from the fanciful and onto the coldly practical