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  • FIRST POST
    • MSE Martin
    • By MSE Martin 8th Oct 07, 5:09 PM
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    MSE Martin
    Are you a woman over 60 who doesnít get a state pension? Get £1000s back
    • #1
    • 8th Oct 07, 5:09 PM
    Are you a woman over 60 who doesnít get a state pension? Get £1000s back 8th Oct 07 at 5:09 PM
    What's this about?

    A parliamentary question by a Lib Dem MP has shown that many women in their 60s are unnecessarily missing out on the state pension. To get a pension you need to have paid national insurance for 10 years of your working life; around 750,000 women are believed to be very near, but just under, this threshold.

    By offering to pay a few £100, if you're near the threshold you can start to get the basic pension of £87 a week, and get a backdated payout from your 60th birthday, which is likely to be £1000s.

    The reason I write 'offering' is actually you won't need to pay them money - it can just be taken from your payout. E.g you need to pay £340 of National Insurance to get your entitlement; and then you're owed £2000 back pay. The £340 then just comes out of the back pay.

    Who's affected?

    Women most likely to be affected are those that have paid some national insurance contributions but may have taken a break to have children, and not quite met the 10 year contribution quota to get a pension. But if you're a woman over 60 and aren't withdrawing a state pension, check now.

    How to check

    The quickest way to check is to call the National Insurance Deficiency Helpline on 0845 1479 302 or 0845 915 5996.

    Explain your situation and ask how far off the required national insurance contributions you are to get a pension. You won't actually need to part with any money; the top-up contributions will simply be deducted from the backdated pension you are owed.

    What you need to find out is

    A. How much more national insurance must I pay to get a pension?
    B. How much will the pension be each week?
    C. How much will I get backdated?

    Assuming the benefit of B and C outweigh A.... go for it!

    Will I lose benefits elsewhere if I draw a pension?

    Drawing a pension may affect other means-tested benefits, but this differs case by case. The best thing to do is follow the steps above to check whether you may be eligible and if it's worth it.

    Also if you are married, have a husband more than 5 years older than you and are drawing a pension on his contributions you're unlikely to benefit.

    More information

    This was first reported on BBC Radio 4 by the Moneybox team... if you're looking at this it's well worth reading the article and listening to the audio.

    Read the BBC article: Pension Boost For Older Woman
    Listen to Radio 4: MoneyBox Item on this pension boost


    IF YOU QUALIFY PLEASE DO REPORT HOW YOU GOT ON AND LET ME KNOW

    Martin

    Last edited by MSE Archna; 11-10-2007 at 1:31 PM.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

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Page 1
  • chris83
    • #2
    • 10th Oct 07, 11:40 AM
    • #2
    • 10th Oct 07, 11:40 AM
    My mum has recently turned 60, but isn't claiming pension. Being rougly 40 years away from being able to get claim myself i don't know much about the whole pension malarky. If my mum is working still will this mean that she cannot claim? I have no idea.

    Thanks in advance.
    • seven-day-weekend
    • By seven-day-weekend 10th Oct 07, 11:49 AM
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    seven-day-weekend
    • #3
    • 10th Oct 07, 11:49 AM
    • #3
    • 10th Oct 07, 11:49 AM
    If you are entitled to a State Pension, you can claim it whether or not you are working. It is not means-tested. You can however defer it and then get more later on.
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
    • seven-day-weekend
    • By seven-day-weekend 10th Oct 07, 11:50 AM
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    seven-day-weekend
    • #4
    • 10th Oct 07, 11:50 AM
    • #4
    • 10th Oct 07, 11:50 AM
    One question I need to ask, how come women who have only paid 10 years can get a full pension? I have had to pay for 26 years and have 13 years of HRP allowed to get mine.

    Have I misunderstood?
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
    • Rikki
    • By Rikki 10th Oct 07, 11:56 AM
    • 20,648 Posts
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    Rikki
    • #5
    • 10th Oct 07, 11:56 AM
    • #5
    • 10th Oct 07, 11:56 AM
    Mum never started working till we had all grown up and never worked the full ten years before she had to claim incapacity benefit.

    Does being on Incapacity Benefit pay towards your national insurance contributions?
    £2 Coins Savings Club 2012 is £4 .............................NCFC member No: 00005.........

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    • roddydogs
    • By roddydogs 10th Oct 07, 12:02 PM
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    roddydogs
    • #6
    • 10th Oct 07, 12:02 PM
    • #6
    • 10th Oct 07, 12:02 PM
    So 10 years contributions gets you the full £87?
    Does this apply to Men as well?
    What about all the women who kept paying the stamp whilst not working? that was money down the Drain?
    • tanith
    • By tanith 10th Oct 07, 12:18 PM
    • 7,982 Posts
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    tanith
    • #7
    • 10th Oct 07, 12:18 PM
    • #7
    • 10th Oct 07, 12:18 PM
    Mum never started working till we had all grown up and never worked the full ten years before she had to claim incapacity benefit.

    Does being on Incapacity Benefit pay towards your national insurance contributions?
    Originally posted by Rikki

    Rikki whilst on Incapcity Benefit your National Insurance Contributions are paid for you...
    #6 of the SKI-ers Club

    "All that is necessary for evil to triumph is for good men to do nothing" Edmund Burke
  • EdInvestor
    • #8
    • 10th Oct 07, 1:21 PM
    • #8
    • 10th Oct 07, 1:21 PM
    It works like this under the current rules:

    You need a minimum of 10 years NICs (which can be paid thru full time work, or voluntary payments or via benefits) to get any state pension at all.If you're a woman you need 39 years to get the full BSP of 87 pounds a week.

    You are also entitled to claim "Home Responsbility Protection" if you were a SAHM receiving child benefit for kids up to the age of 16.This came in in 1978, so if your kids were born after that and you stayed at home for 16 years, then these years count towards the target.

    It's possible to pay up 6 years voluntary NICs in arrears - but at present this number has gone up to 10, due to a computer malfunction at the pensions dept in the 90s.

    Hence, if you already have 10 years, you can get an additional 16 from HRP and 10 from backdated contributions giving an effective total of 36 out of the required 39, so almost the full BSP.

    Note that if you have paid the "small stamp" for any year, you are not eligible for HRP for that year and cannot convert it to a full stamp.And if you have already paid conts in arrears it won;t apply either.The idea won't usually apply to men unless their name is on the child benefit certificate and they have no other conts for the relevant years.
    Last edited by EdInvestor; 10-10-2007 at 1:26 PM.
    • Rikki
    • By Rikki 10th Oct 07, 1:36 PM
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    Rikki
    • #9
    • 10th Oct 07, 1:36 PM
    • #9
    • 10th Oct 07, 1:36 PM
    EdInvestor quick question.

    Mum staid at home with us children for a total of 20 years. Worked for 7 and is now on incapacity benifit and has been for 4 years and is unlikely to come off of this benefit.

    Using your calculations this adds up to 31 years contributions. Add to this the years before she reaches 60 and the voluntry payments she can make, this would bring her up to her 39 week requirement.

    Is she entitled to the full state pension for a women?

    Is this the same amount as the 10 years contribution at £87 a week or more?
    Last edited by Rikki; 10-10-2007 at 1:54 PM.
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    • seven-day-weekend
    • By seven-day-weekend 10th Oct 07, 1:58 PM
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    seven-day-weekend
    Thankyou for clearing that up, Edinvestor. So it's a combination of paying contributions through working or voluntarily and HRP (same as mine really but in different proprtions), but you have to have paid/been credited for 10 years to be entitled to anything at all. Is that it?

    Why haven't these women already been credited with HRP?:confused:

    (edited to add) sorry, misunderstood....their HRP HAS been credited. They can now pay up to 10 years worth of voluntary contributions to bring their entitlement up. Think I understand now!
    Last edited by seven-day-weekend; 10-10-2007 at 2:02 PM.
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
    • margaretclare
    • By margaretclare 10th Oct 07, 2:07 PM
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    margaretclare
    Mum never started working till we had all grown up and never worked the full ten years before she had to claim incapacity benefit.

    Does being on Incapacity Benefit pay towards your national insurance contributions?
    Originally posted by Rikki
    Yes, it does, because you are credited with the contributions - the same as if you were on Jobseeker's Allowance.

    Mum may also be entitled to HRP for the years in child-care.

    This all applies assuming that she married after April 1978 or, if she married before that, did not change to the former 'married women's reduced contribution' option.

    Margaret
    r ic wisdom funde, śr wearū ic eald.
    Before I found wisdom, I became old.
  • Wonderwoman
    I had a letter in 2004 to say if I paid in £1108 I would get a pension - not to pay it yet - on back says....must be rec'd by 6/4/09. I have a bit of money and could pay this amount now to ensure I get the pension. Or should I hold on to that money in my savings a/c and pay in 2009?
    • dipsy
    • By dipsy 10th Oct 07, 3:23 PM
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    dipsy
    so if you stayed at home with kids pre 1978 you are not entitled to HRP or any contributions towards your pension

    is that right?
    2007 £1749
    2008 £291.99
    2009 JanMasscara £7.00 Feb megcabot books x 2 £20 XFactor tkts x 2 £58.00 (couldn't go though as they only phoned on day :-( ) foundation £7.99
    total so far for 09 £92.99
  • Woodville
    Great Advice.
    As my missus only receives a pension of £211.20, due to paying the reduced "married woman's" rate after we married in 1962, she did not collect 10 years full contributions. However, after reading the blog, I made some enquiries, and sure enough, the pension service are looking in to it for me, so that the wife can "pay back" the shortages, and thus receive a full basic pension of £87 per week. The repayment outweighs the contributions that are owing, so with luck, we will get a dividend backdated to 2001, plus an increase in her pension of about £130 a month. The direct telephone number to ring is 0191-218-2550. The staff there are very good, and will advise you as to what you have to do next. This will suit all women who are over the pension age and not receiving the full whack. Thanks a million for the advice. Cheers, Woodville.
    • tanith
    • By tanith 10th Oct 07, 4:40 PM
    • 7,982 Posts
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    tanith
    would this also apply to someone in their 80's who is claiming a pension on her deceased husbands contributions and I think she receives around £300 per month? I believe she only worked for a few years before she married so would not of worked for the qualifying 10yrs
    #6 of the SKI-ers Club

    "All that is necessary for evil to triumph is for good men to do nothing" Edmund Burke
  • EdInvestor
    Mum staid at home with us children for a total of 20 years.
    Originally posted by Rikki
    HRP only started in 1978 and you get nothing for years before that.The max HRP I believe is 16 years.

    Worked for 7
    The may also have a few years credited after school leaving age, even if she was still at school/college.

    and is now on incapacity benifit and has been for 4 years and is unlikely to come off of this benefit.
    So she has another 4 years to add in there.

    When does she reach state pension age?

    Just to make things even more complicated - but also even more beneficial - anyone retiring after 2010 only needs 30 years and there is no minimum any more.

    So she may be already sorted for the full basic of £87 a week without needing to pay any arrears.
  • EdInvestor
    so if you stayed at home with kids pre 1978 you are not entitled to HRP or any contributions towards your pension

    is that right?
    Originally posted by dipsy

    Correct.Of course married women with no pension entitlement in their own right are entitled to a 60% pension based on their husband's contributions and this goes up to 100% if he does before she does. After 2010 men will be able to claim the same based on their wives' NI, how fair is that
  • EdInvestor
    I had a letter in 2004 to say if I paid in £1108 I would get a pension - not to pay it yet - on back says....must be rec'd by 6/4/09. I have a bit of money and could pay this amount now to ensure I get the pension. Or should I hold on to that money in my savings a/c and pay in 2009?
    Originally posted by Wonderwoman
    If you are retiring before April 2010, you should pay it in 2009.If retiring after 2010 and you already have 30 years you don't need to pay it as the number of years needed to get the full pension will have been reduced.
    • roddydogs
    • By roddydogs 10th Oct 07, 5:54 PM
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    roddydogs
    so anyone retiring after 2010 who have already paid the extra to give themselves 39 years have effectifly thrown 9 years contributions down the Toilet?
    • Charis
    • By Charis 10th Oct 07, 6:00 PM
    • 1,292 Posts
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    Charis
    If you are female, stayed at home for long periods with the children or were a carer and you are not quite 60 (60th birthday after April 2010) this will cheer you up.

    http://www.thepensionservice.gov.uk/pensions-reform/home.asp

    This change in the law means that my pension forecast in 2006 of 62% has now gone up to 100%
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