State pension scam?

radhadee

I’m just 66 and told I won’t get full pension 185.15 as despite having over 44 years contributions I have not worked since March 2016 (retired) and they said rules changed April 16 and because I did not work up until 66 years I have not the required amount!! 6 years short!!!!!!! They said all I can do is put in enquiry to see how much I have to pay so I can get full state pension!! This is SO WRONG as I’ve already paid over the amount of years required. Nothing they can do they said! They agreed it’s not right but nothing can be done.
i WILL NOT accept this!!! Be warned people if your coming up to state pension age and not been working!!!!!

TadleyBaggie

It's not a scam, the oft quoted "35 years" to get a full state pension is a myth. You were almost certainly contracted out for a period, and paid lower NI payments. How much much is the COPE amount on your forecast?

molerat

There is nothing to complain about, you have no less than you had accumulated under the old pre 2016 scheme.  I assume you have found this out now you have applied for your pension.   You need to contact the FPC and find out your options. You are a winner under the new rules, despite paying lower NI for many years you have the opportunity to top up your pension, it is excellent value and will pay back the outlay in around 3 years. 

Silvertabby

I also retired before SPA, thanks to my contracted out DB pensions (and having paid reduced NI from 1978 to 2016).

I needed 48 years of NI contributions to qualify for the full single tier pension - 44 years from work and 4 years from paying voluntary Class 3 NI contributions.

However, I am celebrating the fact that I am a winner under the new rules.  Had the system not been changed in 2016, my State pension would have been less than £150 per week with no opportunity to top it up to my actual £185.15.

Dazed_and_C0nfused

radhadee said:

I’m just 66 and told I won’t get full pension 185.15 as despite having over 44 years contributions I have not worked since March 2016 (retired) and they said rules changed April 16 and because I did not work up until 66 years I have not the required amount!! 6 years short!!!!!!! They said all I can do is put in enquiry to see how much I have to pay so I can get full state pension!! This is SO WRONG as I’ve already paid over the amount of years required. Nothing they can do they said! They agreed it’s not right but nothing can be done.
i WILL NOT accept this!!! Be warned people if your coming up to state pension age and not been working!!!!!

Sadly you have completely misunderstood how the new State Pension works.

You are a winner under the new system having paid reduced NI for many years and now being given the opportunity to increase your State Pension to the new standard amount of £185.15.

Most people in your situation take one look at the return on investment and can't wait to get their get cheque book out and pay some voluntary National Insurance 🙂

Silvertabby

TadleyBaggie said:

It's not a scam, the oft quoted "35 years" to get a full state pension is a myth. You were almost certainly contracted out for a period, and paid lower NI payments. How much much is the COPE amount on your forecast?

35 years only really applies to those who started their working lives after 2016.  The rest of us are under transitional arrangements/protections with our own individual calculations.

Audaxer

radhadee said:

i WILL NOT accept this!!! Be warned people if your coming up to state pension age and not been working!!!!!

I know it's hard to take when you thought you would be at the maximum, but I'm afraid it's not a scam. I was in a similar position when I retired with 7 years NI still to pay to get the full state pension. I've now just got 3 years to pay to get to the maximum which will take me up to 49 years paid.

You will have been contracted out, so you should be getting more from a work pension than you would have got if you had not been contracted out. The good news is that if you now pay that 6 years to get to the maximum, you will recover that money within 4 years of receiving your State Pension, and all profit after that, so it is worth paying.

Your online forecast will show what you have to pay each year to get to the maximum, currently around £800 per year, which for each year adds £5.29 per week to your State Pension. Just ensure the last year is worth paying - if for example 5 years takes you to very nearly the £185.15, it would probably not be worth paying for the final year. If you get a quote online and let us know the exact figures showing on your forecast, people here should be able to clarify how much you need to pay. I hope that helps.

xylophone

I suggest that you read

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

which was produced  for public information while the government was preparing for new state pension.

The NSP was actually introduced on 6/4/16 . It was £155.65 at inception.

See also

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

which was produced to coincide with the introduction of the new state pension.

In sum, at 6/4/2016, two calculations were done for you.

You had over 35 years NI at that date.

Old Rules

£119.30 (Full BSP because you had at least the maximum 30 years) +  (Additional State Pension - Deduction for Contracting Out}

New Rules

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

Your foundation (starting) amount was the higher of the two.

You still had a number of years before you reached SPA - your starting amount was less than a full new state pension.

This meant that you had the  opportunity to improve your starting amount  up to (but not exceeding) a full NSP by contributions or credits for the years between 6/4/16 and your SPA.

Marcon

radhadee said:

I’m just 66 and told I won’t get full pension 185.15 as despite having over 44 years contributions I have not worked since March 2016 (retired) and they said rules changed April 16 and because I did not work up until 66 years I have not the required amount!! 6 years short!!!!!!! They said all I can do is put in enquiry to see how much I have to pay so I can get full state pension!! This is SO WRONG as I’ve already paid over the amount of years required. Nothing they can do they said! They agreed it’s not right but nothing can be done.
i WILL NOT accept this!!! Be warned people if your coming up to state pension age and not been working!!!!!

Nothing wrong except your understandable failure to understand the hopeless complexities of the state pension.

If you want to top up, paying extra contributions is fantastically good value. Clear explanation here: https://www.moneysavingexpert.com/savings/voluntary-national-insurance-contributions/

Absolutely no point saying you won't accept it; it's not optional.