Not getting full state pension?

Inaspin

I've done the checks for my NI contributions, to 2018 I had 46 years of full contributions, I took early retirement in 2018 so have missed 4 years of contributions, but surely the 46 years should give me a full state pension. Can anyone help explain why I'm getting less than my wife?

Audaxer

You must have been contracted out as many of us were. I've got 47 years full contributions and still need to pay another 2 years voluntary NI to get to nearly the maximum new State Pension.

What amount does your SP forecast give for Estimate of your NI record up to 5/4/22? That will tell us how many years NI are needed to get you to the maximum £185.15.

Linton

Probably because you were in a DB scheme contracted-out of SERPs.  If contracted out you paid less NI and therefore accrued less State Pension.  The widely publicised 35 years only applies to people who only paid NI post April 2016.  Everybody retiring now and for the next 40 or so years will have paid pre-2016 NI and so fall under transition arrangements.

You could pay voluntary NI for some of your pre-retirement years to get the full amount.  There must be hundreds of other similar posts on this forum.  If you read through a few you will see what is going on and the benefits and details of buying extra years.

Inaspin

Thanks, I started receiving State Pension in November, I've got a letter saying what I'll get from April, £723.80 every 4 weeks if that helps.

Inaspin

Ah, I was in local government for 30 years, that might well have been contracted out. cheers.

pinnks

You were almost certainly contracted out, so paid less NIC and have your LGPS in addition to your state pension.  It may well be worth your while buying the additional years to increase your pension, assuming you are in good health.  Each year will cost about £825 (increasing to £907 from April), though 2021/22 and 2022/23 won't increase yet, and will add £275 per year to your pension. So, live 3 years into claiming it and you are quids in.

molerat

Inaspin said:

Ah, I was in local government for 30 years, that might well have been contracted out. cheers.

Most certainly was.

So currently £164.35 pw / £657.40 4 wkly ?  You are 4 years of contributions short of the max.

The good news is you will be able to make that gap up, or at least some of it, with voluntary contributions.

Do you have access to your on line tax account ?That will show you your NI gaps and how much it will cost to fill them.

Well worth doing.

xylophone

Ah, I was in local government for 30 years, that might well have been contracted out. cheers.

See

https://forums.moneysavingexpert.com/discussion/comment/79897254/#Comment_79897254