NI contributions/pension

Frankie56

I have a few questions as I'll be claiming my pension soon. Can anyone answer them for me, please?

1. Is it right that NI contributions are automatically given if you stay at home to look after a child under 12? I started work in1974 and left to have my first baby in 1976 and another in 1979. Went back to work when the youngest was 6 months old. I have full years from '74 on except for 1 year in between having my babies when there are no contributions at all.

2. Some years, where it says I have full contributions, next to it it says "72 weeks" or "103 weeks". What does that mean?

3. One year (1999/2000), it says I only have 49 contributions, despite full years before and after. It was quite a while ago so I don't know why these weren't paid but it seems unfair that that year doesn't count at all. Why aren't other weeks put together to make a full year? Or the number of weeks worked used instead of full years? It doesn't seem fair that someone could possibly (although probably unlikely) work 51 weeks a year every year and get nothing towards their pension.

molerat

1. The credit is if you were claiming child benefit after April 1978, pre 2010 it was for a child under 16.

2. You were getting credits from 2 sources which confuses the computer a bit, not of any relevance / concern, only 52 count.

3. Could be a thousand and one reasons for the missing weeks. You can get a full year with less than 52 weeks work.  If you don't need the year don't lose any sleep over it. You could query it with HMRC if you want to.

Do you understand exactly what the pension forecast is telling you ?

xylophone

You have obtained a state pension forecast?

https://www.gov.uk/check-state-pension

What exactly does it say?

Frankie56

Molerat, thank you for your reply.

1. I was claiming child benefit from 1976 until my children left school but didn't get the credits. 
2. Thank you for explaining that. Yes, doesn't make any difference. I was just curious how there could be more than 52 weeks in a year.
3. I do think it is unfair that someone could work 51 weeks and it not be counted at all. And also, why can we only pay any missing contributions over the last 6 years but not before? Think I'll give them a ring and ask them to explain. More curiosity than anything else.

Xylophone, yes, I did check the forecast. It lists all the years since I left school, most saying 'Full Year', a few saying 'Year is not full' (one in particular 49 contributions where I don't know why the other 3 weren't paid), the ones I didn't work due to looking after my young children saying 'Year is not full - you made no contributions this year' although I was claiming child benefit. It tells me how much pension I will probably get and how to make up any weeks which weren't paid.

 

p00hsticks

Frankie56 said:

I do think it is unfair that someone could work 51 weeks and it not be counted at all. And also, why can we only pay any missing contributions over the last 6 years but not before? Think I'll give them a ring and ask them to explain. More curiosity than anything else.


 

I agree that the system of NI could do with an overhaul - at least going forward it's easy to check your NI record online and, if missing the odd week for one reason or another, pay the small amount required to make up a full year.  However, the ones who are really badly affected are those in the 'gig economy' who are working several zero hours contracts and so don't reach the lower earnings threshold in any individual one of those jobs - they may be working full time between them but not accumulating any NI credits.

On your second point, currently (following the introduction of the new State Pension in 2016) you are allowed to make up missing contributions back as far as 2006 - it will revert to only being able to go back six years in (i think) April 2023.

If it's only to satisfy your own curiousity, please reconsider ringing 'them' (presumably HMRC or DWP/the Pension Service) - there are currently people positng on these boards who are not getting their state pension paid at present due to delays in the admin, and people like yourself phoning up with queries that are just to satisfy their curiosity won't be helping....

Frankie56

P00hsticks, it definitely does need an overhaul. Unfortunately the missing credits are in the years before 2006. I could make up the one missing 3 weeks, (although can't afford the others) but I'm too late. I've got a full year missing from 1977/78 for some reason, despite getting credits before and after because I was claiming child benefit.

I take your point about phoning up to satisfy my curiosity. That was about why they don't use weeks rather than full years. I can't find that answer anywhere. I want to phone mainly to find out why credits weren't given while I was claiming child benefit and why they won't use a year that's missing 3 credits when the years either side are full and I was employed by the same company for a few years either side. It was 22 years ago and as far as I can remember, there was no reason for them not to be paid). Will they allow me to pay them now? Is it worth my while paying them? Only they can tell me, I guess.

GrumpyDil

Sorry to labour the point but you were asked earlier what exactly your forecast says (not the number of years but the actual forecast amount). 

I don't profess to understand the full ins and outs but it is possible you already have sufficient credits to get the maximum state pension entitlement anyway. 

xylophone

It tells me how much pension I will probably get and how to make up any weeks which weren't paid.

What exactly does your forecast say in respect of what you will receive?

Frankie56

Thank you all for your comments. I was able to speak to someone who used to work in pensions and she gave me the number to ring to check my contributions. The lady there was very friendly and helpful and answered all my questions.