How many years are required to get full state pension?

kaMelo

[Deleted User] said:

Okay

I don’t know why I was told that paying voluntary contributions before 2016 would make no difference but having said that, I have written strong letters to my local MP over this and all the pre 2016 years have now been corrected. Just leaves 2020-21 and 2021-22 which are universal credit and as I have been told by UC.

28th June QUOTE from UC about the two years missing.

“I have looked into your query regarding your National Insurance credits. It has been confirmed this is a known issue and a solution is being progressed to resolve this." 

People on UC not receiving NI credits is a known problem, there has been a few posts about this on the benefits board.
Here is a thread on rightsnet highlighting the problem from last year with an FOI response.

https://www.rightsnet.org.uk/forums/viewthread/17920/#84868
https://www.whatdotheyknow.com/request/uc_claimants_not_being_automatic

‘Thank you for the information about your national insurance credits. A solution to this

problem is currently in development which will ensure that all UC claimants are credited with

the appropriate credits, with a contingency if a case is rejected. We don’t currently have a

timescale for when this work will be fully completed.

We are currently prioritising claimants who are within 4 months of State Pension Age to

ensure that their claims for State Pension are not delayed.’

DWP Response

I can confirm that we hold the recorded information to respond to your request.

The issue regarding the updating of an individual’s National Insurance record with class 3 contributions was first identified in 2019.

Since then a strategic solution has been implemented to ensure all Universal Credit claimants are credited with the appropriate credits to support their qualifying years for state pension purposes.

Between November 2020 to November 2021 there have been 855 such cases raised for further investigation.

jem16

[Deleted User] said:

Okay

I don’t know why I was told that paying voluntary contributions before 2016 would make no difference but having said that, I have written strong letters to my local MP over this and all the pre 2016 years have now been corrected. Just leaves 2020-21 and 2021-22 which are universal credit and as I have been told by UC.

I think you are still not understanding the explanations given to you already in this thread so you might want to go back and have another look. 

Basically anyone who has 35 years by 2016 will not be able to improve their pension with NICs pre 2016. Only post 2016 years will do so. 

Anyone with between 30 and 35 years by 2016 may be able to improve it with pre 2016 years but it depends on their exact circumstances. 

Anyone with less than 30 years by 2016 will be able to improve their pension with pre 2016 years assuming there are gaps to do so and they also do so by April 2023 when you will not be able to anymore as it reverts back to the usual 6 years. 

Linton

[Deleted User] said:

Here is an interesting question. A man retires in 2016 and has 35 years NI contributions. He is Fine. But if he retires one year later he is screwed. because he has to go back to work for another four years.

Try again...

We have to make the assumption of zero SERPs since the rules changes several times and it is impossible to work out the final pension unless you know how much was earned each year and difficult to work out even if you do know.

If  someone reached SP age with 35 years NI in the end of the  tax year 2015/2016 they would have accrued the then "basic" pension of £115.95/week. .

If someone reached SP age at the end of the tax year 2016/17 with 34 years NI up to April 2016 and 1 year NI after.  The following calculations would have been made:
(A)  up to and including 2015/2016 Under the old rules: £119.30 X 30/30 (as for 2015/2016+inflation)
(B) up to and including 2015/2016 under the new rules: £159.55 (the then rate) X 34/35=£154.99
(C) in 2016/2017 under the new rules - £159.55 X 1/35=£4.56 

The actual SP is given by the C plus the maximum of A and B = £159.55

As has been said many times if you accrue NI pre and post April 2016 total years are irrelevent.  You have to work it out separately for the two periods

molerat

[Deleted User] said:

Here is an interesting question. A man retires in 2016 and has 35 years NI contributions. He is Fine. But if he retires one year later he is screwed. because he has to go back to work for another four years.

You misunderstand how the new state pension works.

At April 2016 an exercise was carried out to reconcile your starting amount for the new pension which gave you the higher of the new or old calculations.

Looking at your record (prior to your latest update) you have a total of 40 years, 36 of them being pre 2016.

Under the old scheme you could only use 30 basic years and the new 35.

You already had 36 pre 2016 years so no matter how many more you added you would still be constrained by the 30 or 35 you already had in excess of.

As you were contracted out there was a deduction from the new figure to account for the lower NI payments you made in that time (post 2016 there is no reduced NI so those starting out post 2016 get the full advantage of 1/35 new pension but pay the full rate for it), the old calculation already took this into account. 

Generally when contracted out the old figure works out the highest.

From the figures you previously supplied if you had reached retirement age just before April 2016 you would have had a pension of £127.52 under the old scheme which would be worth £146.83 today and that is all you would be entitled to.

Under the new scheme that £127.52 was banked, increasing with the triple lock each year, and you can add to it with post 2016 contributions / credits up to the maximum new pension which in your case would be the full available 6 years to take you to just below the maximum.

So if the old scheme had continued, given your contribution and employment status, you would be receiving £146.83 when you reach SPA later this year. Now under the new scheme you are on track to receive £183.40.