Aged 72, didn't claim state pension at retirement age as NI credits Missing

BronteBondi

Female, aged 72 (under new state pension).

When I came to retirement age, I received a letter that I was entitled to less than £2/week state pension.

I was so angry that I threw the letter away and downsized the family home to fund retirement.

I was married, and whilst my husband built his career I was stayed at home raising our three children.

When we got divorced, despite him having built his own private pension pots, I was not awarded any of this. At the time I wasn't aware I might have been entitled.

My daughter got me to go to CAB last year to discuss my "state pension", as I have never claimed a penny. And because I don't claim it I haven't been entitled to the benefits of warm home discounts etc.

I qualify for pension credit, but after having issues years ago whereby I had to repay some of the working tax credits (still don't know why I had to do this) I do NOT want to claim pension credit if there is a risk I will then owe more.

I own my home, it's a cold house, and rarely heat it, which has caused a lot of mould and damp issues.

When we visited the CAB they helped me check my NI record, and it has changed since I last received correspondence. The missing years were then showing. I was entitled to around £160/week.

The issue is, I only "deferred" by default (as I didn't make a claim) a pension that was worth nothing for 5 years, and when I did start claiming they were only able to backdate a portion (maybe £5k) and not the full amount that was missed.

As the information was incorrect when I reached retirement age, is there a case to complain to get the FULL amount I missed? Roughly 5 years at £160 = £41,600 (minus £5k already received).

I just feel the odds were stacked against me from the beginning

• Born after April 1953, so missed retiring earlier compared to my friends
• Victim of the missed Home Responsibilities credits
• Because I didn't register for pension, I wasn't on any lists to be contacted to rectify.

I suffer greatly with my mental and physical health. I would like to be able to turn the heating on, and perhaps pay for some help around the home with anything extra I can get.

I have £5k in savings, but DO NOT WANT pension credit as mentioned above, so please don't advise to claim it. I know I am a belligerent old lady, but the frustration of navigating systems I don't understand means I do not want to go through that stress.

NB I helped my daughter with childcare, but since she didn't claim child benefit (for the same frustrations I have had, and she felt she didn't need it as much as other families), there is no recourse to use some of those NI credits.

If you have got this far, thank you for reading my ramble. Taken a year to get the courage, so please be kind. I just wonder if I am a truly unique case or others have had the same issue?

Thanks

molerat

As you, by default, deferred your pension you will be receiving an increased pension amount based on that deferrment. When you claimed you backdated that start date, the maximum allowed is one year, and received that amount as a lump sum. You will effectively receive that missed pension drip fed over the coming years.

Vitor

Missing Home Responsibilities Protection is a known issue, especially for women who claimed Child Benefit between 1978 and 2010 where NI records were not properly linked. But the arrears point is harder. If you reached State Pension age after 6 April 2016, not claiming normally counts as deferral, and usually increases the future weekly pension rather than giving all missed payments as a lump sum. I would ask DWP for a written calculation showing the corrected pension, arrears, and deferral treatment. If the original decision was wrong due to official records, consider a formal complaint.

QrizB

As molerat says above, the maximum arrears payment for someone on the new state pension is 12 months.

Your other six(?) years of deferment is reflected in your pension being increased by ~30% from what it would have been at age 65.

This bit however confuses me:

When I came to retirement age, I received a letter that I was entitled to less than £2/week state pension.

As I understand it, you need to have at least ten years of paid NI before you qualify for any state pension at all. Ten years of entitlement, seven years ago, would have been closer to £48 per week.

I can't quite fathom how you were offered less than £2 per week, and it's a shame you threw away the letter.

Silvertabby

Did you opt to pay the 'married woman's stamp' at any point?

BronteBondi

https://forums.moneysavingexpert.com/discussion/comment/82035805#Comment_82035805

No, I don't think so.

BronteBondi

I think it was a pension forecast letter perhaps? As I wouldn't have not claimed that amount.

BronteBondi

Thank you for your very helpful response, perhaps I will try a formal letter.

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/82035883#Comment_82035883

Did you work in between getting married and starting your family? If so, how many years did you work? And did you get married before April 1977?

Brie

Have you been in receipt of any income related benefits since reaching state pension age? If so you should be careful about backdating any SP as that will count as income for which your benefits will be recalculated. I know someone who backdated their SP and had to pay back about the same amount in benefits as they received for the back dated pension. So they would have been better off not back dating and getting the enhanced pension instead.

marcia_

https://forums.moneysavingexpert.com/discussion/comment/82036092#Comment_82036092

surely as a pensioner they wouldn't be entitled to other means tested benefits as they only go up to pension age.