Additional NI credits

FPaulMil

I have purchased additional years NI , but was still not able to buy enough credits to give me the full state pension amount, apparently this is because I was in a final salary scheme for most of my career, and, unknown to me paid national insurance at a lower rate, so, although I had over 48 years of contributions this was still not enough to receive a full pension even after purchasing the extra two years that I was allowed to do.

I would have liked to further top up my "lower rate" contributions, but, on contacting hmrc was told this was not possible,  why ??

, I am sure that this affects many people. 

MallyGirl

Maybe have a read of 

https://forums.moneysavingexpert.com/discussion/6360562/39-years-paying-ni-and-still-short-of-30-of-state-pension-who-new-this-could-happen

There have been a flurry of these questions recently.

p00hsticks

FPaulMil said:

I would have liked to further top up my "lower rate" contributions, but, on contacting hmrc was told this was not possible,  why ??

Because for pension calculation purposes a 'full year' is a 'full year' regardless of what rate of NI you were paying

Some people may not have paid any NI at all, but if they e.g. were claiming child benefit or Jobseekers allowance, or earning above the Lower Earnings Limit but not enough to meet the Primary Threshold, if they did it for 52 weeks they'd be recorded as having a full year. As would people who were contracted out and those who were contracted in.

The thread MallyGirl has linked to includes an explanation of how your 'starting amount' was arrived at when the new State Pension was introduced in 2016 and the impact of being contracted out.

squirrelpie

FPaulMil said:

I would have liked to further top up my "lower rate" contributions, but, on contacting hmrc was told this was not possible,  why ??

Because the final salary scheme will pay you the difference instead of receiving it via the state pension. Just as part of its regular payments, not marked as special in any way.

FPaulMil

I still receive a state pension and reduced final salary as a result , yes the difference is roughly the same ...but the amount paid as state pension is less than the full amount despite 48yrs paying in , it should be possible to top up so I or anyone in a similar position could receive the full state pension 

xylophone

I still receive a state pension and reduced final salary as a result 

Do you mean that your scheme operates "clawback" as here?

https://commonslibrary.parliament.uk/research-briefings/sn01121/

It has nothing to do with contracting out.

despite 48yrs paying in

Did you reach SPA before or after 6/4/16?