DWP forecast says 34 years out of 35 is only pennies less per week than full state pension.

mooch

My wife spoke to DWP today to discuss her pension forecast and was told that if she only qualifies for 34 out of the 35 years, her forecast says that although she will not receive a full state pension, the amount will only be 16p less per week.

I asked why and was just told that's what the forecast says and it is different for everyone.

I had thought it would be pro rata 34/35 x full state pension.

Anyone know why this might be the case?

Thanks.

MarlowMallard

The "1/35 of new pension per NI year" only applies to NI years after Apr 2016. Years before 2016 are different: usually worth more than 1/35 if you had SERPS/S2P, usually less than 1/35 if you were contracted-out of SERPS; the calculation is complicated. So presumably she had some years in SERPS before 2016.

For my own example, I have 28 years mostly contracted-out before 2016, and I need another 10 after, so 38 total to get the full new SP.

DRS1

Plenty of threads on here and the sub-forum about why 35 years is a red herring. They say you can have the full SP with as little as 28 years of NICs (or that you need as many as 44). It is all because we straddle the old rules and the new rules.

Ayr_Rage

@mooch as above, 35 years is not applicable to anyone with a working history before 2016, it is just coincidental that your wife achieved almost the full SP around that number.

I was born in 1959, contracted out for many years and needed over 47 years to get the full SP, a good few more than the 44 @DRS1 quoted as the maximum.

eastcorkram

https://forums.moneysavingexpert.com/discussion/6653515/dwp-forecast-says-34-years-out-of-35-is-only-pennies-less-per-week-than-full-state-pension

I get more than the new state pension, already in payment, with only 31 full years.

Silvertabby

I win this round with 48 years (44 from working, 4 from paying voluntary Class 3s), but I've heard of someone needing 50 years.

I am also very much one of the winners under the new pension scheme - maximum pre 2016 contracted out service, but enough time between 2016 and SPA to be able to top up my State pension to the new single tier rate.

SnowMan

https://forums.moneysavingexpert.com/discussion/comment/81867843#Comment_81867843

That's impressive someone needing 50 years.

That can't be beaten as anyone reaching SPA after 6th April 2016 who earns 51 qualifying years for certain gets a full new state pension unless they make a future change to the rules.

michaels

Of course if you work after you have 35 qualifying years you effectively suffer a 10k per year pay cut as you are no longer earning any more state pension.

(12500/35 = 357 per year state pension earned and assume annuity cost of 3.5% then 357 for life costs about 10k)

Blue_Butterfly

In 2016 I had 43 years and think I had a starting amount of £127 (can't remember the pennies). I needed another 7 years which was the actual amount of years I had left. My final year (22-23) added £1.55. Despite needing 50 years I am a big winner of the transition as I am also the widow of a contracted in pre 2016 pensioner so inherited a protected payment as well.

t0rt0ise

I needed 49 years but only had time to get 48 before state retirement age. So I'm a little short of the full pension but it's still more than the old style pension.

ggmf

https://forums.moneysavingexpert.com/discussion/comment/81867843#Comment_81867843

Me! I required 50 years to receive the full State Pension.