Final year of NI contributions does not count toward state pension

Chitty1

I have been told by HMRC that the final year of my NI contributions does not count toward my qualifying years.  I am two years short of a full state pension, as I only have 33 years years showing on my gateway account.  HMRC confirmed that I did contribute £2619.09 up to my birthdate in my final year of contributions but as my birthday was in March of the final year none of those contributions can be counted as it was not possible to contribute for a full year.  Can somebody confirm if this is correct.  

molerat

The tax year in which you reach state retirement doesn't count.  You are just unlucky being born at the end of March - my BiL was born 5th April, how inlucky was he !

35 years is of no significance to you, how much  £££.pp was your SP forecast for ?

Silvertabby

Unfortunately, yes, only full financial years count towards State pension NI credits.

Have you checked your actual State pension entitlement?  As you are in the old/new State pensions transitional period, 35 years doesn't apply to you - you will have your own individual calculation.

ProDave

A question.  Could you "make" that final year count if you deferred drawing your state pension for a month pushing it into the next tax year, and making that previous year a full year before you start drawing SP?

(Asking as a fellow Pisces)

Silvertabby

ProDave said:

A question.  Could you "make" that final year count if you deferred drawing your state pension for a month pushing it into the next tax year, and making that previous year a full year before you start drawing SP?

(Asking as a fellow Pisces)

No.  Nice try, but no cigar.  

molerat

ProDave said:

A question.  Could you "make" that final year count if you deferred drawing your state pension for a month pushing it into the next tax year, and making that previous year a full year before you start drawing SP?

(Asking as a fellow Pisces)

No. it is all based on state pension age.

“relevant year” means 1978-79 or any subsequent tax year in the period between—

(i)(inclusive) the tax year in which the pensioner attained the age of 16, and

(ii)(exclusive) the tax year in which he attained pensionable age;

https://www.legislation.gov.uk/ukpga/1992/4/section/44/enacted

badmemory

Are you sure that all the relevant years have been credited & that there are none in the last (I  think) 18 years that can be bought if missing.

Chitty1

Thank you for all of the information, it seems almost like DWP are taking money under false pretences.  I have now received the award letter which states that I qualify for the "New State Pension" "If you’re a man born on or after 6 April 1951, or a woman born on or after 6 April 1953, you’ll get the new state pension." When I checked about 15years ago, I was told that I had a full entitlement (back then was 30years) didn't realise that it had changed to 35 years. I have asked DWP to check how many full years I now have and to check what the value would be if I purchased the additional years.      

molerat

It is not as simple as number of years.  If you had 30 years at April 2016 you will still have entitlement to the full old basic pension amount, you have not lost anything, it is just access to the new pension amount that has changed.  Your options can be figured out from your tax account.  Post up the following anonymous information and you will get the answers you need in minutes here.

Current weekly £££.pp pension amount
Number of pre April 2016 NI years full
Number of post April 2016 NI years full
Were you in a contracted-out pension scheme - do you have a works final salary pension
Years which show not full and prices

Chitty1

Thank you Molerat, yes I am learning that it is not just about number of years, I did contract out for a while, so I need to find these details and come back to you.  In the meantime DWP are going to write with qualifying years, what's missing and how much it would cost to get full DWP pension. I also understand that as I contracted out for a period, the DWP does not count this but it will probably be worth more than the full state pension.  I have some hunting down of documents to do now.  Will come back with more detail.

kimwp

molerat said:

The tax year in which you reach state retirement doesn't count.  You are just unlucky being born at the end of March - my BiL was born 5th April, how inlucky was he !

35 years is of no significance to you, how much  £££.pp was your SP forecast for ?

That's sucky. I have a similar in that my company increases its pension matching with age, but at the April after you turn the relevant age, so a May birthday misses out nearly a whole year of additional contributions.