State Pension - Forecast is £187.25 pw but only 30 full years' NI contributions??

MikeFloutier

Hi, I'm just reviewing my wife's upcoming State Pension situation (2025).

 Her forecast is £187.25 pw but only 30 full years' NI contributions are shown in her NI record.

I'm puzzled as the figure looks like it's around the maximum and it states "You cannot improve your forecast any more."

Basically, I'm trying to decide if she should make any voluntary NI contributions, bearing in mind my understanding that she needs 35 full years for the full pension.

Any ideas?

Kind regards,

Mike

MX5huggy

She started work before 2016 so 35 years is not relevant. 

af1963

She doesn't need 35 years for the full pension.  Most of her working life was under the old state pension,  so she will be entitled to whatever she had earned under that system up till 2016 (which will include a basic old style state pension based on her contributions up till then, and may also include some additional SERPS pension). Plus, if that doesn't already give her a full pension, whatever she has built up in the new pension system since then ( roughly £5 per week for each NI year added) . It's perfectly possible for that to make up a full pension, even with fewer than 35 qualifying years.

molerat

It is quite possible to have reached in excess of the full amount with less than 35 years.  She had already earned more than the full amount at April 2016 when the new pension was introduced and nothing she has done since or can do in the future will add to that amount unless her pre 2016 years were less than 30 then filling any pre 2016 gaps to 30 would add value.

Dazed_and_C0nfused

MikeFloutier said:

Hi, I'm just reviewing my wife's upcoming State Pension situation (2025).

 Her forecast is £187.25 pw but only 30 full years' NI contributions are shown in her NI record.

I'm puzzled as the figure looks like it's around the maximum and it states "You cannot improve your forecast any more."

Basically, I'm trying to decide if she should make any voluntary NI contributions, bearing in mind my understanding that she needs 35 full years for the full pension.

Any ideas?

Kind regards,

Mike

You've misunderstood the new State Pension.

She is under transitional rules so having 35 years is of no relevance.

It's only those starting to pay NI from 2016 that fall entirely under the new rules.

GunJack

If it makes you breathe easier, I got to newSP max on 30 or 31 years, having spent my first 20 yrs in the civil service and the rest to date in a private company, both with contracted-out "company" pension schemes. Hybrid rules for those of us who started paying NI before 2016

xylophone

This was the guide produced by the government before introduction of NSP. The  actual amount of NSP at 6/4/16 was £155.65.  Full Basic was £119.30.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

This (produced by Royal London when the NSP started) may also be of interest.

https://www.dpf.org.uk/explorer/files/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

MikeFloutier

Thanks guys, at £800 per year it looks like I just made a £4000 saving so I really appreciate the advice.

Its been a good week, yesterday Barclays (my final-salary pension) just sent me £4,700 having done the equalisation calculations on my GMP. Plus it looks like the good old HMRC will be refunding me around £800 of the tax Barclays sent them.

Thanks again!

xylophone

yesterday Barclays (my final-salary pension) just sent me £4,700 having done the equalisation calculations on my GMP. 

The  final answer to the final question?

https://forums.moneysavingexpert.com/discussion/4736856/barclays-final-salary-pension-gmp-excess-revaluation-anti-franking/p1

https://forums.moneysavingexpert.com/discussion/comment/75226562/#Comment_75226562

Those were the days!

xylophone

 the final question?

Unless you count what awaits on the other side.... 

Not "weeping and gnashing of teeth" I devoutly trust.... had enough of that with WTW......?

Audaxer

GunJack said:

If it makes you breathe easier, I got to newSP max on 30 or 31 years, having spent my first 20 yrs in the civil service and the rest to date in a private company, both with contracted-out "company" pension schemes. Hybrid rules for those of us who started paying NI before 2016

I'm surprised that you were in contracted out schemes and still managed to get to the full SP with only 30 or 31 years contributions. I'm not sure how the hybrid rules work as I would have thought you had more chance of reaching the maximum early if you were not contracted out?