40+ Qualifying years but not a full State Pension

Tethers_End

Hi,

I am confused and frustrated, and wondered if anyone has experienced the same problem with HMRC.

I am currently receiving less than the full state pension and queried this with HMRC. They confirmed that I have in excess of 40 qualifying years, but because I retired early ( 2 years before my official retirement age ), I am under qualified by 2 years - as apparently they ‘look at the last 6 years prior to your official retirement age’ ( whatever that means? ).

Is that right - it’s seems legally and morally wrong? How can I have enough qualifying years but not be eligible for a full pension? 

The unhelpful person I spoke with at HMRC offered no explanation and simply said if you want the full pension you will have to pay for those 2 years.

Has anyone else encountered the same problem? I think it’s truly disgusting. 

TadleyBaggie

Simply, you must have been contracted out for a period, it's not unheard of that 49 years is needed for a full pension.

Whoever said they look at the last 6 years is totally wrong, it's the NI record for your whole working life that was used to calculate your state pension entitlement.

QrizB

Tethers_End said:

Is that right

Almost certainly.

Tethers_End said:

How can I have enough qualifying years but not be eligible for a full pension? 

"Enough" qualifying years can vary from less than 30 to more than 40.
35 years only applies to people born this century, and they won't be claiming their state pension for a little while yet.

Tethers_End said:

The unhelpful person I spoke with at HMRC offered no explanation and simply said if you want the full pension you will have to pay for those 2 years.

They're almost certainly correct. And "telling you the correct answer, which isn't the answer you wanted to hear" doesn't make them unhelpful.

Tethers_End said:

Has anyone else encountered the same problem? I think it’s truly disgusting. 

Lots of people.
Eg this current thread:

https://forums.moneysavingexpert.com/discussion/6592885/before-i-paid-7xvcs-2016-thru23-i-had-36-full-yrs-2011-thru2016-are-still-gaps-why-cant-i-fill

Ayr_Rage

I had over 40 NI years when I retired from work at the age of 57 in 2016.

I bought 6 years last August which got me to £217.43, pension claimed Feb 2025.

I've binned all of my calculations now but I think 48.58 years was the number needed for the full SP.

@Tethers_End, sorry, it's not disgusting, just the way it works if you have been in a contracted out pension scheme.

CapricornLass

If its any consolation, I had 44 years paid when I retired at 62,  And no, I didn't get the full state pension.

If you do decide to buy the extra years, (and if you can, I suggest you do so) make sure that you buy whole years from April to March.  My birthday is in December, and paying a part year between April and December doesn 't count in their calculations. 

Incidently, my extra three years bought me an extra £15 a month.  If you live longer than 4 years, then you have broken even, and anything else is a bonus.

Sarahspangles

My OH retired with 44 years (all with one employer) and has just ‘bought’ the 45th. Due to contracting out he needed 8 years post 2016.

I think what the helpline was trying to communicate was that you had six tax years available after April 2016, and before the year in which you reached retirement age, in which to boost your pension from the basic up to the full New State Pension.

german_keeper

Legally and morally wrong, truly disgusting? You haven't given much detail but if you take the time to educate yourself about the new state pension I suspect you might find that you are a winner under the new system introduced in 2016, compared to the old system.

You aren't alone, my sister was the same but after I explained it all to her she was chuffed to bits. And it isn't HMRC you should be talking to it is DWP, to find out whether you can do anything to improve your pension. It may be that you can't but DWP will tell you.  

Tethers_End

Thanks for all those who took the time to respond and explain what the staff at HMRC weren’t willing or able to explain. 

At no point did they mention the phrase ‘contracting out’ - nor does the HMRC website say that past payments were short ( it shows 45 years as paid ). 

So my initial thoughts on the staff member being unhelpful, stands. She was eager to get off of the phone, and unwilling to offer any explanation or redirection to DWP ( for example ). I was left abit confused and frustrated by the experience. 

Considering I’d waited over 30 mins to speak with someone, their subsequent impatience and reluctance to clarify anything, was abit trying …. and perhaps that coloured my perception of the experience. 

As a general comment, I do find that some people in public forums can be quite cutting and unnecessarily condescending. The comment "telling you the correct answer, which isn't the answer you wanted to hear doesn't make them unhelpful”. lol. 

To clarify my original point, the person I spoke with offered no answer or clarification, hence describing the experience as unhelpful. That seems quite reasonable. 

Some people are quick to make assumptions which aren’t helpful either.

Anyway, I am a little clearer on the situation, despite having no recollection of being contracted out or paying less NI. Based on the comments of others though, it would seem that’s the case. 

Thanks again. 

p00hsticks

Tethers_End said:

Anyway, I am a little clearer on the situation, despite having no recollection of being contracted out or paying less NI. Based on the comments of others though, it would seem that’s the case. 

Are you in line for any private pension from a previous employer ? If so you would have been contracted out. 

german_keeper

Tethers_End said:

Thanks for all those who took the time to respond and explain what the staff at HMRC weren’t willing or able to explain. 

At no point did they mention the phrase ‘contracting out’ - nor does the HMRC website say that past payments were short ( it shows 45 years as paid ). 

So my initial thoughts on the staff member being unhelpful, stands. She was eager to get off of the phone, and unwilling to offer any explanation or redirection to DWP ( for example ). I was left abit confused and frustrated by the experience. 

Considering I’d waited over 30 mins to speak with someone, their subsequent impatience and reluctance to clarify anything, was abit trying …. and perhaps that coloured my perception of the experience. 

As a general comment, I do find that some people in public forums can be quite cutting and unnecessarily condescending. The comment "telling you the correct answer, which isn't the answer you wanted to hear doesn't make them unhelpful”. lol. 

To clarify my original point, the person I spoke with offered no answer or clarification, hence describing the experience as unhelpful. That seems quite reasonable. 

Some people are quick to make assumptions which aren’t helpful either.

Anyway, I am a little clearer on the situation, despite having no recollection of being contracted out or paying less NI. Based on the comments of others though, it would seem that’s the case. 

Thanks again. 

Not sure you would have any recollection of being contracted out; generally I think it just happened if you had a works pension. I don't recall being specifically told about contracting out but as an 18 year old with his mind on things other than pensions, I can't say that I definitely wasn't told.

And with the lower NI payments, without the knowledge of contracting out, I am not sure you would have realised that  others would have been paying a higher rate. I don't recall too many converations down the pub in my youth about what rate of NI we were all paying!