Checking State Pension increase

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82118266#Comment_82118266

Surely they were just saying that there are gaps in your NI record, but that paying to fill them would be futile as they wouldn't increase your pension?

QrizB

From the 2016 post that is linked above:

Have I misunderstood this?

Yes you have misunderstood.

Those words were written by @p00hsticks who reaches State Pension Age (SPA) in circa 2027.

P00hsticks can continue to accrue years of pension entitlement from 2016 until the year in which they reach SPA. This lets them boost their pension towards (and potentially reaching) the NSP level.

You reached SPA in 2016. You are unable to add additional post-2016 years of pension entitlement to your NI record, and so none of that applies to you.

But I did have extra years to add.

You had pre-2016 years that you could have added. But you already had 30 full pre-2016 years, so adding more years wouldn't have improved your SP forecast. This is all explained in that previous thread.

Post-2016 years would have helped you, but you had already reached SPA so couldn't add any.

Edit: see molerat's very useful post from 2016:

You have a "new" pension 34/35 of £155.60 = £151.15 - £45.96 = £105.19 so your actual amount must be your "old" pension of £122.60 as it is larger. Buying an additional pre 2016 year would make no difference to the "old" pension as you already have 30/30 but the "new" calculation would be £155.60 - £45.96 = £109.64, still lower than the "old" pension.

30 years under the "old" calculation was worth £122.60. 34 years under the "new" calculation was £105.19, while 35 (or more) years would have been £109.54.

Adding extra pre-2016 years would not have helped.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82118266#Comment_82118266

Let me give you a personal example. I topped up in 2022. At the time I had 27 full years all pre 2016. I also had 14 years "available to purchase". When I spoke to the DWP they told me that it was only worth my while filling 9 of those 14 years and only 3 of those 9 years were pre 2016 years. I had other pre 2016 years I could fill but it would not have made a difference.

And I am still short of the full new state pension by £3.45 per week. I could fill that by buying another post 2016 year now but I would not have filled it by buying a pre 2016 year back in 2022.

And yes I did have some contracted out years pre 2016.

Now maybe I did not quiz the chap from the DWP about the whys and wherefores but they were very clear that I should not be buying those earlier years even though I was concerned that they would soon be unavailable for purchase because the topping up window was closing.

goodValue

If I understood P00hsticks post correctly, his forecast gave him a greater amount with the Basic State pension, but purchasing further years, his amount for the New State Pension would surpass the Basic State pension amount.

Why can I not do the same?

QrizB

Why can I not do the same?

You were born too early.

You'd need to change your date of birth so you didn't reach State Pension Age until at least 6th April 2017. That would let you get a full year of SP entitlement under the post-2016 plan.

goodValue

https://forums.moneysavingexpert.com/discussion/comment/82119136#Comment_82119136

When I contacted the DWP 2 years ago, they said I had years available for purchase.

molerat

https://forums.moneysavingexpert.com/discussion/comment/82119173#Comment_82119173

That is a simple statement of fact. They though did go on to state that purchasing them would not add to your pension, again a statement of fact.

My simple explainer from 2016 that has been quoted here a couple of times shows the calculation as to why it will not add to your pension. The only possible way for you to increase your pension would have been with post 2016 years and, as stated earlier, you did not have any available as you "were born too early". I was also born too early and although not reaching retirement until 2019 there were not enough post 2016 years to fill the gap. I filled the available three but that still leaves me short by around 2 years.

goodValue

https://forums.moneysavingexpert.com/discussion/comment/82119175#Comment_82119175

If the DWP said there were years available for purchase, surely they meant pre 2016 years as obviously I was not able to purchase post 2016 years.

QrizB

If the DWP said there were years available for purchase, surely they meant pre 2016 years

Yes, that's exactly what they meant.

And (as has been explained several times before) extra pre-2016 years would not increase your pension.

goodValue

The only possible way for you to increase your pension would have been with post 2016 years

I am confused by this statement.

If you have 35 years accrued, but do not qualify for the full New State pension, how does buying extra years increase the value for your New State pension?