State pension not receiving full allowance

xylophone

He was 65 in 2018, and paid in 44 years.

Yes he has pension for the company he was employed with. 

https://www.gov.uk/government/publications/new-state-pension-if-youve-been-contracted-out-of-additional-state-pension/the-new-state-pension-transition-and-contracting-out-fact-sheet

It is likely that his occupational scheme was "contracted out" of Additional State Pension.

It would seem that by 6/4/16, he had more than thirty five NI years. 

On 6/4/16, at inception of new state pension, two calculations were done for him.

Old Rules

£119.30 (Full Basic because he had at least 30 years (maximum)) + (Additional State Pension - Deduction for Contracting Out).

New Rules

£155.65 (Full NSP because he had at least 35 years (maximum) - Contracted Out Pension Equivalent.

His "starting amount" was the higher of the two and was probably given by the old rules.

It was less than a full NSP and therefore may have been improved by contributions he  may have made between 6/4/16 and his State Pension Age.

Since commencing to draw his state pension, it would have increased under the "triple lock" rules in 2019 and 2020.

jamesd

The question about whether he worked right up to his state pension age is important. If any years from 2016/7 are missing he can increase his state pension by buying those years and it's likely to be worth doing if his health is OK. Can't buy the tax year in which he reached state pension age so 2017/8 might not be doable.

Under the old rules he had the 30 years required for the maximum basic state pension. On top of that he'd have received an earnings-related additional state pension amount that would take a lifelong low earner up to perhaps £200 a week, over £300 for lifelong high earners. Since he isn't getting that it means that his work scheme had all of its members contracted out of the earnings-related part of the state pension system, usually a good idea. Then either the employees paid less NI while working or more often the work scheme took over the responsibility for paying the earnings-related bit, but probably just includes that in the total amount without showing it as any sort of separate figure. So, he's still getting paid, just by a different place. And maybe with the option to get paid twice if he has any years he can buy.

p00hsticks

jamesd said:

The question about whether he worked right up to his state pension age is important. If any years since 2005/6 are missing he can increase his state pension by buying those years and it's likely to be worth doing if his health is OK.

Pre-2016 years aren't going to make any difference, as he had accumulated at least 35 years by the time the new state pension was introduced.

The year 2016-17 would, if not already filled.

2017-18 might, depending exactly when in 2018 he actually reached State Pension Age. If after 5/4/18 it would, if before not, as the tax year in which you reach SPA is excluded from the calculations

.

jamesd

True about those pre-2016 years, I've edited my post accordingly.