Forecast to get max rate of state pension BUT I've <35yrs qualifying contributions ??

Guss

What I have:
Full Years = 27
Years Reqd = 5 more
Years not full = 10
Current Age 59

So on paper I'm short qualifying years. I was listening to Martin's podcast today knowing I've till April 5th to buy more NI years if required. I've understood 35 years is the requirement. BUT when looking up my pension forecast it states:

My State Pension Summary
You can get your State Pension on 20 August 2032
Your forecast is £221.20 a week, £961.83 a month, £11,541.90 a year
Forecast if you contribute another 5 years before 5 April 2032 is £221.20 a week
£221.20 is the most you can get.You cannot improve your forecast any further, unless you choose to put off claiming.


So my question is if I can't improve my forecast and my statement seems to say I'm qualifying for the full rate having only 32 (27+5) qualifying years instead of 35. How is this? Am I reading this wrong?

TadleyBaggie

Guss said:

I've understood 35 years is the requirement. 

Then you have understood wrong, 35 years is the requirement only if you started your working life post-April 2016. If you were working before this and have not yet reached SPA, you may need as little at 29 years or as many as 49. It depends on f you were contracted in to SERPS/SSP or contracted out.

Martin always says you need 35 years-ish to cover himself.

HappyHarry

You are reading it correctly.

The 35 year requirement only applies to people who started making NI contributions in 2016 or later. Everyone else in a transitional phase, and you will need somewhere between 28 and 44 years of contributions, depending on earnings and contracting out history.

molerat

35 years is only relevant to those born this century.  Everyone else is on a hybrid scheme and you needing less years is because of what you had built up under the old scheme prior to 2016.  You need to listen again to what Martin says, you clearly have not understood. What is your amount up to April 2024 ?  Why are you considering filling gaps, are there any really cheap part paid years in there ?

Marcon

This might be a helpful explanation: https://www.litrg.org.uk/pensions/state-pension/national-insurance-and-state-pension

Silvertabby

HappyHarry said:

You are reading it correctly.

The 35 year requirement only applies to people who started making NI contributions in 2016 or later. Everyone else in a transitional phase, and you will need somewhere between 28 and 44 years of contributions, depending on earnings and contracting out history.

Anything between 28 years and 50 years.  Any more offers?  

Sarahspangles

Silvertabby said:

HappyHarry said:

You are reading it correctly.

The 35 year requirement only applies to people who started making NI contributions in 2016 or later. Everyone else in a transitional phase, and you will need somewhere between 28 and 44 years of contributions, depending on earnings and contracting out history.

Anything between 28 years and 50 years.  Any more offers?  

There was someone on the Topping Up sub board the other day who got there with 26 years.

Guss

TadleyBaggie said:

Guss said:

I've understood 35 years is the requirement. 

Then you have understood wrong, 35 years is the requirement only if you started your working life post-April 2016. If you were working before this and have not yet reached SPA, you may need as little at 29 years or as many as 49. It depends on f you were contracted in to SERPS/SSP or contracted out.

Martin always says you need 35 years-ish to cover himself.

Well I actually did contract out but only for 3 years until I left the company. Boy this is confusing still getting my head around it. My fault for burying my head in the sand.

Guss

HappyHarry said:

You are reading it correctly.

The 35 year requirement only applies to people who started making NI contributions in 2016 or later. Everyone else in a transitional phase, and you will need somewhere between 28 and 44 years of contributions, depending on earnings and contracting out history.

So If you contracted out your NI contributions would be less so would you still be regarded as having a full year with regard to NI contribs?

DRS1

Guss said:

HappyHarry said:

You are reading it correctly.

The 35 year requirement only applies to people who started making NI contributions in 2016 or later. Everyone else in a transitional phase, and you will need somewhere between 28 and 44 years of contributions, depending on earnings and contracting out history.

So If you contracted out your NI contributions would be less so would you still be regarded as having a full year with regard to NI contribs?

Yes because full years only relate to the basic state pension (as was) but contracting out relates to the additional state pension (SERPS or S2P).

If you are going to be working for at least 5 years before 2032 it looks like you have nothing to worry about

Guss

Thank you I really didn't expect to get such a fast response to my questions. I clearly need to do a lot more reading. When you embark on sorting out your finances when you've previously neglected it, it can be overwhelming. A lot of this was down to my mental health and avoidance. TBH tackling it now feels like a weight of my shoulders. So thanks for answering to what must be very basic questions.