I am confused as to why I don’t get a full State Pension

System

This discussion was created from comments split from: State Pension and NI Contributions.

Spursygirl

I too am confused as to why I don’t get a full State Pension.  I have 43 years full contributions.  I was contracted out for two years, but that means I still have enough years to qualify.  I’ve been retired for 6 years now, on a reduced pension.  I have asked DWP many times to explain this to me but it doesn’t make sense.  They inform me I can buy extra years but what’s the point if it will not get me a full pension?   I am not eligible for Pension Credit because I have a very small amount of savings (around £17000) from inheritance.   I have now of course lost my Winter Fuel Allowance.   Could anyone explain why 43 years of contributions isn’t enough?

Hammer_Time

I am in the same situation and I also haven’t a clue, I guess it’s just bad luck. On the plus side I will get my pension at 66.

Silvertabby

Spursygirl said:

I too am confused as to why I don’t get a full State Pension.  I have 43 years full contributions.  I was contracted out for two years, but that means I still have enough years to qualify.  I’ve been retired for 6 years now, on a reduced pension.  I have asked DWP many times to explain this to me but it doesn’t make sense.  They inform me I can buy extra years but what’s the point if it will not get me a full pension?   I am not eligible for Pension Credit because I have a very small amount of savings (around £17000) from inheritance.   I have now of course lost my Winter Fuel Allowance.   Could anyone explain why 43 years of contributions isn’t enough?

Not that it's any consolation, but I needed 48 years of NI contributions (44 from working, 4 from paying voluntary Class 3s) in order to qualify for the full nSP.  Others have needed as many as 50 years.  Not complaining, as I consider myself to be one of the winners under the new pension scheme, mainly because I had enough time between 2016 and SPA to be able to add to what would have been a much lower  pension under the old rules.

During the transitional period we all have our own very individual calculations, so there's no easy answer to your question.   As you reached State pension age in 2018 (?) with more than 30 years of pre 2016 contributions, it is likely that your options for paying additional contributions would be limited to 2016/17 and 2017/18 at the most (again, assuming that you didn't pay NI by working then).

Paying voluntary NI is a highly lucrative option for most people - but less so the further away past SPA you are when/if you pay it.

molerat

There are hundreds of posts on here explaining how the new pension is arrived at and the main reason for not receiving the full pension is due to contracting out and not paying full NI.  You got no less than you would have got under the old system, you didn't lose anything, it is just the way the new pension dealt with contracting out. For those with a pre 2016 history the number of years is of no real relevance to the new pension.  Postings on here have given full, or more, post 2016 pensions with between 28 and 50 years.  It is all down to personal circumstances.  For those past pension age The Pension Service https://www.gov.uk/contact-pension-service  will be able to tell you if you can improve your pensions and how to do it.  For those pre pension age the Future Pension Centre https://www.gov.uk/future-pension-centre will give that information but even easier that information is available through your on line tax account.  Also posting some basic unidentifiable info here will give many of us enough to point you in the right direction.  It is not very difficult if you have an understanding of how the system works.

Current weekly £££.pp amount accrued up to April 2023 or 2024, not all have been updated so please specify, or amount of pension currently received.
Number of full NI years 15-16 and earlier
Number of full NI years 16-17 and later
Tax year you reach/ed state retirement
Any COPE amount.  If you have "You've been in a contracted-out pension scheme" on your forecast then click
here https://www.tax.service.gov.uk/check-your-state-pension/account/cope whilst logged into your tax account
Years which show not full and prices

sofm

"Your forecast is £221.20 a week"
"£221.20 is the most you can get"

No text relating needing to contribute anything further - so I hope I'm in the reverse situation?

> Number of full NI years 15-16 and earlier

26

> Number of full NI years 16-17 and later

8

> Tax year you reach/ed state retirement

2038

> Any COPE amount. 

"Your COPE estimate is £16.36 a week"