State Pension confusion

inigma

Hello,

My wife and I were checking our state pensions, I am 2 months older than my wife, we both have 22 qualifying years, but for me i only need 9 years to get the full allocation whereas my wife needs another 14 years.

Can anyone explain why?

molerat

Pre 2016 you would have received more earnings related additional pension meaning your starting amount for the new pension was higher.

QrizB

inigma said:

My wife and I were checking our state pensions, I am 2 months older than my wife, we both have 22 qualifying years, but for me i only need 9 years to get the full allocation whereas my wife needs another 14 years.
Can anyone explain why?

One of you was contracted out of SERPS / S2P while the other was contracted in?

inigma

So if I out earned my wife until 2016 I am better off when it comes to the state pension?

inigma

QrizB said:

inigma said:

My wife and I were checking our state pensions, I am 2 months older than my wife, we both have 22 qualifying years, but for me i only need 9 years to get the full allocation whereas my wife needs another 14 years.
Can anyone explain why?

One of you was contracted out of SERPS / S2P while the other was contracted in?

I don't think so my wife is NHS from 2005/2006 onwards they wouldn't have contracted out would they?

Dazed_and_C0nfused

inigma said:

So if I out earned my wife until 2016 I am better off when it comes to the state pension?

Not necessarily.  If you are young enough you are likely to both end up getting £221.20/week.

QrizB

inigma said:

QrizB said:

inigma said:

My wife and I were checking our state pensions, I am 2 months older than my wife, we both have 22 qualifying years, but for me i only need 9 years to get the full allocation whereas my wife needs another 14 years.
Can anyone explain why?

One of you was contracted out of SERPS / S2P while the other was contracted in?

I don't think so my wife is NHS from 2005/2006 onwards they wouldn't have contracted out would they?

As I understand it the NHS pension scheme was contracted out, yes.

See eg. this thread:
https://forums.moneysavingexpert.com/discussion/6176534/state-pension-nhs-contracting-out

inigma

Dazed_and_C0nfused said:

inigma said:

So if I out earned my wife until 2016 I am better off when it comes to the state pension?

Not necessarily.  If you are young enough you are likely to both end up getting £221.20/week.

yeah we will, we are 43 I am just curious why there would be a 5 year discrepancy in our qualifying years if we both have 22 years built up?

inigma

QrizB said:

inigma said:

QrizB said:

inigma said:

My wife and I were checking our state pensions, I am 2 months older than my wife, we both have 22 qualifying years, but for me i only need 9 years to get the full allocation whereas my wife needs another 14 years.
Can anyone explain why?

One of you was contracted out of SERPS / S2P while the other was contracted in?

I don't think so my wife is NHS from 2005/2006 onwards they wouldn't have contracted out would they?

As I understand it the NHS pension scheme was contracted out, yes.

Ah ok, this will do it!  Thank you

dunstonh

inigma said:

QrizB said:

inigma said:

My wife and I were checking our state pensions, I am 2 months older than my wife, we both have 22 qualifying years, but for me i only need 9 years to get the full allocation whereas my wife needs another 14 years.
Can anyone explain why?

One of you was contracted out of SERPS / S2P while the other was contracted in?

I don't think so my wife is NHS from 2005/2006 onwards they wouldn't have contracted out would they?

Yes, the NHS pension was contracted out.   

There were two methods of contracting out. Both called the same but worked differently.  The method used by the NHS meant that she paid lower NI in those years and didn't qualify for the S2P entitlement within the old state pension but the NHS pension makes up the difference.  So, its not lost money. Its just coming from a different source.

inigma

dunstonh said:

inigma said:

QrizB said:

inigma said:

My wife and I were checking our state pensions, I am 2 months older than my wife, we both have 22 qualifying years, but for me i only need 9 years to get the full allocation whereas my wife needs another 14 years.
Can anyone explain why?

One of you was contracted out of SERPS / S2P while the other was contracted in?

I don't think so my wife is NHS from 2005/2006 onwards they wouldn't have contracted out would they?

Yes, the NHS pension was contracted out.   

There were two methods of contracting out. Both called the same but worked differently.  The method used by the NHS meant that she paid lower NI in those years and didn't qualify for the S2P entitlement within the old state pension but the NHS pension makes up the difference.  So, its not lost money. Its just coming from a different source.

So she works another 14 years and gets the full state pension and gets an extra amount from the pre 2016 opt out plan?