State pension amounts 3 February at 9:27AM edited 3 February at 9:28AM in Pensions, annuities & retirement planning 12 replies 861 views

VXman

Looking at our state pension figures (me and the wife are 60) mine is currently £153 pw maximum. The maximum I  could get is £185. My wife's is £165, possible max. £185.

We both have 8 years NI missing (4 for university annd 4 for when working abroad)

Does anyone know why our figures aren't identical? The only difference between us (other than male/female) is that I am 6 months older.

GrubbyGirl_2

Probably because your contracted out years are different

VXman

GrubbyGirl_2 said:

Probably because your contracted out years are different

Ah. So my wife took some years out to have/look after children so recieved some 'contracted in' rates?

VXman

GrubbyGirl_2 said:

Probably because your contracted out years are different

But our potential maximums are still the same?

Audaxer

VXman said:

GrubbyGirl_2 said:

Probably because your contracted out years are different

But our potential maximums are still the same?

The new State Pension maximum is currently £185.15 for everyone providing they have enough years left to reach it.

Audaxer

Every post-2016 year NI you fill is worth an extra £5.29 per week. Missing years before 2016 may be worth less or may not be worth anything at all, so check before filling them.

VXman

Audaxer said:

VXman said:

GrubbyGirl_2 said:

Probably because your contracted out years are different

But our potential maximums are still the same?

The new State Pension maximum is currently £185.15 for everyone providing they have enough years left to reach it.

Hmm.....so contracted out people get less (or did up to 2016?)  but can still end up with the same if they pay enough years. Which suggests that a non contracted out person who works and contributes right up until retirement age loses out (i.e. pays more but recieves the same?)

My wife only needs to buy back 4 years to reach her maximum. I will probably need more. Very annoying as I worked more years!

Pat38493

VXman said:

Audaxer said:

VXman said:

GrubbyGirl_2 said:

Probably because your contracted out years are different

But our potential maximums are still the same?

The new State Pension maximum is currently £185.15 for everyone providing they have enough years left to reach it.

Hmm.....so contracted out people get less (or did up to 2016?)  but can still end up with the same if they pay enough years. Which suggests that a non contracted out person who works and contributes right up until retirement age loses out (i.e. pays more but recieves the same?)

My wife only needs to buy back 4 years to reach her maximum. I will probably need more. Very annoying as I worked more years!

To some extent this might be the case but not as much as you think because non contracted out people might have built up additional SP under SERPS or later schemes which means they have a protected SP which is higher than £185.

LHW99

But if either of you were contracted out, you would have an additional private pension. And NI payments cover more than just pensions.

Silvertabby

Even if your wife was contracted out, if she worked part time between 2002 and 2016 she may have accrued some SP2 top ups as a 'low earner'.

There are so many reasons why you have different figures.  Actually, I'd be more concerned/suspect an error if you both had identical quotes!

MACKEM99

VXman said:

Audaxer said:

VXman said:

GrubbyGirl_2 said:

Probably because your contracted out years are different

But our potential maximums are still the same?

The new State Pension maximum is currently £185.15 for everyone providing they have enough years left to reach it.

Hmm.....so contracted out people get less (or did up to 2016?)  but can still end up with the same if they pay enough years. Which suggests that a non contracted out person who works and contributes right up until retirement age loses out (i.e. pays more but recieves the same?)

My wife only needs to buy back 4 years to reach her maximum. I will probably need more. Very annoying as I worked more years!

As long as you can get the maximum why worry about what others get?

You did not mention those on the dole for all of part of their lives who get a full pension.