The future pension service hanging up

p00hsticks

JaneyQ1 said:

 I don't know why they insinuate that full 35 years is all you need to get a full pension. Clearly not. 

It's partly lazy journalism and partly lazy listening - people write (or hear) '35 years; without adding the qualifier '...for those who started their working lives since the introduction of the new State Pension (i.e born this centrury). 

JaneyQ1 said:

 I will look into the child care credits too but don't want it to grossly affect my daughters pension in the future.

It shouldn't do if the reason you are looking after the children is to enable your daughter to work, and she is also in receipt of Child Benefits.  The idea is that by working she will be paying NI and so won't also need the credits associated with the child benefit, which can then be transferred to you.   
Specified Adult Childcare credits: fact sheet - GOV.UK (www.gov.uk)

xylophone

Can anyone shed any light on this?

My query to discuss is:-  I took early retirement to help look after grandchildren  2009. Also did 2 yrs Fostering but didn't pay NI because I had full years up to 2009.
My forecast says 
35 full years
£146.85 est based NI to 5.4.22
£162.72 if contribute to 5.4.25
£173.30 if pay shortfalls.
Why does it say I have full years but I am not on the full pension?

Have you ever seen 

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

This was produced by the Govt for the general public a couple of years before introduction of NSP.

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

was produced by Royal London to coincide with the introduction of NSP.

 A 'qualifying year' is a tax year (April to April) during which you have paid, or have been credited with enough, National Insurance Contributions (NICs) to make that year qualify towards your  State Pension.

 At 6/4/16, your "starting amount" for NSP was the higher of

(a) Your entitlement under the old rules

NI years/30 (max) x full basic state pension (£119.30) + (Additional State Pension - (if applicable) Deduction for Contracting Out).

(b) Your entitlement under the new rules

{NI years/35 (max) x Full NSP (£155.65)} - (if applicable) Contracted Out Pension Equivalent.

What is the COPE shown on your forecast?

How many "qualifying years" did you have at 5/4/16?

JaneyQ1

Molerat, Xylophone and P00hsticks,

Thanks for all your easy to follow advice. The link to the public guidance is very good although still takes a bit of re- reading!

 I have completed the Grandparents NI Credits application for posting tomorrow. Fingers crossed as I have looked after 2 and still looking after 2 grandchildren since finishing work in 2009.

My full years from 1975 to 2009 count up to 35 full years. I haven't paid any NI since because I ignorantly thought I'd reached the years for a full pension. Therefore I assume I have 35 years up to 2016.
 
COPE estimate is £34.70 (is this the deduction for contracting out?) Still not sure if this is what is paid in my current CS Pension and will be deducted from my state pension?

Thanks again.

molerat

If you have 35 years up to 2009 then any more years 2015-16 and earlier will not add any value.  Only 2016-17 and later will count.

You need 8 years to reach the maximum, 7 will take you to £183.88 at £5.29 each, the 8th will add £1.27

But I don't understand the maximum achievable you have quoted.  You have 3 years going forward, 22-23 to 24-25, so that gives the £162.72 but you have 6 years, 16-17 to 21-22 left to fill which is more than enough to get to the maximum.  What does your NI record show for those years ?

xylophone

COPE estimate is £34.70 (is this the deduction for contracting out?) Still not sure if this is what is paid in my current CS Pension and will be deducted from my state pension?

The COPE represents a part of the CS pension you are currently receiving - it will not be deducted from your State Pension.

It was used just once in  establishing your "starting amount" for NSP as explained above.

See (for "rebate derived amount" read COPE.

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

Could you clarify your NI record as requested by molerat above?

You say 35  qualifying years at 6/4/16.

 If so, your old rules calculation was

£119.30 + (Additional State Pension - Deduction for Contracting Out).

The new rules calculation was

£155.65 -  £34.70 = £120.95

The one must have been very close to the other.

But whether based on old or new rules, there should have been sufficient years to enable you to reach a full NSP?

JaneyQ1

My Pension Forecast contributions are:-
1975 to 1976 Full year
1976 to 1977 Full year
1977 to 1978 Full year etc. etc.......
2008 to 2009 Full year
2009 to 2010 Full year
2010 to 2011 Year not full
(shortfall £824.20 by 5.4.23 may increase after 10.4.23)
2011 to 2012 Year not full (shortfall as above)
2012 to 2013 Year not full (shortfall as above)...........
2016 to 2017 Year not full (shortfall £824.20 by 5.4 23 may increase after 10.4.23)
2017 to 2018 Year not full (shortfall £824.20 by 5.4.24 may increase after 10.4.23)
2018 to 2019 Year not full (Checking to see if counts towards pension will update)
2019 to 2020 Year not Full (Checking as above)
2020 to 2021 Year not Full (Checking as above)
2021 to 2022 Year not Full (Checking as above)
2022 to 2023 Your record not available yet.

Hope this makes sense!
Thanks again.
 

molerat

There is the problem, "checking" years do not exist in the calculations so cannot be added to the totals.  What were you doing for those years ? The usual is self employed and not paying class 2.

JaneyQ1

I was Fostering from July 2018 to May 2021. I didn't pay NI because I thought I'd got enough years in. My ignorance. From 2021 to the present I have and am looking after my toddler grandson. From July I'll be looking after my other baby grandson too! 

molerat

That will be it then. HMRC know you were doing something, other than employed, where credits should have been received. You should be entitled to carer credits for fostering and, for NI purposes, it is self employed so you should be able to pay class 2 for those years if necessary.  If you are covering those years with the "granny credits" then no problem but if not then class 2 is only around £3 per week opposed to class 3 at £16 per week.  So all is not lost.  You now need to sit down and work out where you are going to get 8 years of credits from between 2016-17 and 2024-25.  You seem to have a few avenues open for free / cheap credits.
https://www.fosterplus.co.uk/fostering-allowances/national-insurance/

JaneyQ1

Molerat,

Thanks so much for all your help. I'll check the years properly. Think the NI Credits will cover it but thanks for pointing out the options. So glad Martin Lewis highlighted this now as it gives me time to get it sorted. Otherwise I'd have ended up with a much smaller pension and no time to do anything!
Thank goodness for people like you who can explain these complex processes to the ordinary man in the street!