45 years NI contributions required for full state pension?

Billportland

My wife recently contacted the Future Pensions Centre to find out why she isn't forecast to receive the full new state pension despite already having 41 years of full NI contributions.
She was told that she needs 45 years. 
Martin Lewis' recent TV programmes and podcasts have said that "it's complicated" and that the number of years could be in the range of 30 to 44.
Why? And why does my wife require 45?
She can buy some years, but at £800 a year she'd rather buy 3 than 4!

Flugelhorn

because it's "complicated"  - everyone had some calculations done in 2016 and then that was the basis for the new pension, the years after that have added more to it 

zagfles

Because she was in a contracted out occupational scheme which took over responsibility for paying part of the state pension and got NI rebates to do so.

Search the forum, the same question is asked every week.

marlot

If you look in the sticky thread at the top of the page, all your questions will be answered.

or https://www.moneysavingexpert.com/savings/state-pensions/

Silvertabby

Martin was wrong (again!).  He should have said 'anywhere in the range of 30 to 50+ years', not '30 to 44'.

I needed 48 years (44 from working, 4 from paying voluntary Class 3s).  When I mentioned this in a previous post I said that someone else on these boards had needed 49 years, and asked if anyone could beat that.  Someone almost immediately popped up with their 50.

p00hsticks

Billportland said:

She can buy some years, but at £800 a year she'd rather buy 3 than 4!

Assuming that the years she needs to buy are recent (post-2016) years, at present each year bought will currently add £5.29 to whatever her forecast amount to date is, up to the maximum of £185.15. 

 If her forecast says she needs four more years to reach the maximum, you need to do the maths as the fourth year may not be worth buying - it could be buying her anything form an extra 1p a week to an extra £5.29

p00hsticks

Silvertabby said:

Martin was wrong (again!).  He should have said 'anywhere in the range of 30 to 50+ years', not '30 to 44'.

I needed 48 years (44 from working, 4 from paying voluntary Class 3s.  When I mentioned this in a previous post I said that someone else on these boards had needed 49 years, and asked if anyone could beat that.  Someone almost immediately popped up with their 50.

and I may be wrong, but going the other way I think we've also had someone posting who had already reached the maximum with only 29 years (because they had built up a lot of SERPS/S2P prior to 2016),

molerat

p00hsticks said:

Silvertabby said:

Martin was wrong (again!).  He should have said 'anywhere in the range of 30 to 50+ years', not '30 to 44'.

I needed 48 years (44 from working, 4 from paying voluntary Class 3s.  When I mentioned this in a previous post I said that someone else on these boards had needed 49 years, and asked if anyone could beat that.  Someone almost immediately popped up with their 50.

and I may be wrong, but going the other way I think we've also had someone posting who had already reached the maximum with only 29 years (because they had built up a lot of SERPS/S2P prior to 2016),

And sometime back there was someone who had in excess of the maximum and could improve their forecast

Silvertabby

p00hsticks said:

Silvertabby said:

Martin was wrong (again!).  He should have said 'anywhere in the range of 30 to 50+ years', not '30 to 44'.

I needed 48 years (44 from working, 4 from paying voluntary Class 3s.  When I mentioned this in a previous post I said that someone else on these boards had needed 49 years, and asked if anyone could beat that.  Someone almost immediately popped up with their 50.

and I may be wrong, but going the other way I think we've also had someone posting who had already reached the maximum with only 29 years (because they had built up a lot of SERPS/S2P prior to 2016),

Good point.  This person, and others like them, are the only losers under the new scheme.  Had they been able to continue racking up SERPS/SP2 they could have accrued over £300 per week State pension instead of being capped at £185.15 (or their foundation amount in April 2016, if higher than the nsp).

molerat

Billportland said:

My wife recently contacted the Future Pensions Centre to find out why she isn't forecast to receive the full new state pension despite already having 41 years of full NI contributions.
She was told that she needs 45 years. 
Martin Lewis' recent TV programmes and podcasts have said that "it's complicated" and that the number of years could be in the range of 30 to 44.
Why? And why does my wife require 45?
She can buy some years, but at £800 a year she'd rather buy 3 than 4!

It is complicated but actually very simple to work out with the info available on the forecast.  If you would like to post up all the details from the forecast then someone will talk you through the options.  Nothing is identifiable to you.

Current amount accrued up to April 2022
Number of pre 2016 years full
Number of post 2016 years full
Financial year you reach state retirement
Any COPE amount shown
Years which show not full and prices

Topping up gaps is very much worthwhile in 99.9% of cases.  The capital outlay will be paid back gross in around 3 years and then it is pure profit for however many years after that.  No open market annuity or bank account can come anywhere close to that.

xylophone

See

https://forums.moneysavingexpert.com/discussion/comment/79877026/#Comment_79877026

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

https://www.gov.uk/government/publications/new-state-pension-if-youve-been-contracted-out-of-additional-state-pension/the-new-state-pension-transition-and-contracting-out-fact-sheet