Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 31st Mar 16, 1:09 PM
    • 75Posts
    • 44Thanks
    MSE Helen Saxon
    New State Pension Guide
    • #1
    • 31st Mar 16, 1:09 PM
    New State Pension Guide 31st Mar 16 at 1:09 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks,
Page 20
    • Straightbat
    • By Straightbat 5th Mar 18, 11:41 PM
    • 11 Posts
    • 1 Thanks
    Straightbat
    The Government web-site is not very clear on this, but a newspaper article I have read by Steve Webb seems to confirm that if my new state pension starting amount is below the maximum and my retirement age is after April 2017 I can pay a voluntary National Insurance contribution for 2016-17 to enhance my pension's starting amount, and so on for every complete year until I reach my state pension age. But there is nothing in the MSE guide about this even though it would seem to be an excellent way to enhance one's pension if the funds are available.

    Secondly my state pension age is actually February 2018 so I can only purchase one of these years anyway. But is it too late for me to do this now?

    (And thirdly, if all this is correct, why is there so little information about it?)
    Originally posted by Straightbat
    You can - and there will also be people out there who have already reached the new maximum in less than 35 years (although if working they will still have to pay NI until they give up working or reach State Pension age).

    The issue is, I think, that the media have just picked up on the '35 years for a new State Pension' without qualifying this by saying that that is only for people just starting their working lives - for the rest of us there are transitional rules in place which means that everyone's position is different.

    However, it is pretty straightforward to get an individual pension forecast online via gov.uk and everyone should be encouraged to do this.
    Originally posted by p00hsticks
    Thank you Poohsticks but the plot yet thickens more. I have now discovered that I do not have to pay a voluntary NI contribution for 2016-17 after all because for men of my age it is automatically credited!
    Now where in all the published advice and guidance does it tell me that, and why does everywhere talk of me having to pay a voluntary contribution for that year instead ?
    • Silvertabby
    • By Silvertabby 6th Mar 18, 9:37 AM
    • 2,737 Posts
    • 3,916 Thanks
    Silvertabby
    Thank you Poohsticks but the plot yet thickens more. I have now discovered that I do not have to pay a voluntary NI contribution for 2016-17 after all because for men of my age it is automatically credited!
    Now where in all the published advice and guidance does it tell me that, and why does everywhere talk of me having to pay a voluntary contribution for that year instead ?
    Originally posted by Straightbat
    I think the problem is that everyone is so different, so just one leaflet won't cover it all !

    In Mr S's case, he will be 65 in May but retired 5 years ago. He had always been contracted out, so there would be no benefit in paying the missing years between retiring and 2015/2016 - but he gets 2016/2017 and 2017/2018 'free' due to his reaching pension credit age at 63+ (ie, the age his twin sister, if he had one, would have received her State pension).

    Once State pension age equality has been reached (later this year) the pension credit age NI credits will cease, which will make things a little easier to understand.
    • xylophone
    • By xylophone 6th Mar 18, 10:32 AM
    • 25,371 Posts
    • 14,967 Thanks
    xylophone
    Now where in all the published advice and guidance does it tell me that,
    https://www.gov.uk/automatic-pension-credits-for-men
    • Straightbat
    • By Straightbat 6th Mar 18, 11:20 AM
    • 11 Posts
    • 1 Thanks
    Straightbat
    Thank you all but unless there are links in the guides to this page it will not be found, which was my experience. Meanwhile guides do however talk about paying voluntary NI contributions post April 2016 which naturally implies that no such credits are awarded!

    Silvertabby my situation is almost the same to Mr S except he gets a second year's free credit as my 65th birthday was this February. However I like the twin sister comparison because I actually have one.
    • p00hsticks
    • By p00hsticks 6th Mar 18, 11:26 AM
    • 6,205 Posts
    • 6,648 Thanks
    p00hsticks
    Thank you all but unless there are links in the guides to this page it will not be found, which was my experience. Meanwhile guides do however talk about paying voluntary NI contributions post April 2016 which naturally implies that no such credits are awarded!
    Originally posted by Straightbat
    The Royal Londonguide to topping up your state pension which I gave you a link to a couple of days ago has this on the bottom of page 22
    Credits
    The main way of building up entitlement to a StatePension is by paying NICs on money you earn.But if you are not working and therefore not paying NI,the Government will, in some situations, give you NI credits. This simply means that for the purposes of your State Pension you are treated as if you had paid NI.
    For example, you can get NI credits if you are claimingcertain sickness or unemployment benefits, are a carerand meet particular conditions or are registered toreceive Child Benefit for a child under 12.
    Some NI credits are given automatically while others you have to apply for.
    To check if you are eligible, see https://www.gov.uk/national-insurance-credits/eligibility
    If you click on the link provided there you will see that one of the eligibility conditions is

    Men approaching 65

    Your situation: You are between the current womens State Pension age and 65, live in the UK at least 183 days a year and you are in one of these situations: you do not work, you do not earn enough to make a qualifying year, or you are self-employed with a small earnings exception
    How to get credits: You get Class 1 credits automatically
    Last edited by p00hsticks; 06-03-2018 at 11:31 AM. Reason: remove spurious code replacing apostrophes
    • Straightbat
    • By Straightbat 6th Mar 18, 11:31 AM
    • 11 Posts
    • 1 Thanks
    Straightbat
    Thank you Poohsticks.
    • greenglide
    • By greenglide 6th Mar 18, 9:14 PM
    • 3,096 Posts
    • 2,015 Thanks
    greenglide
    There is a grave danger of future generations believing everything they read on the internet as if it were 'the truth, the whole truth and nothing but the truth'.
    While there has been nothing similar in the print medium over many, many, many years?

    Personally I still find the print media "worse" for this.
    • mgdavid
    • By mgdavid 6th Mar 18, 10:16 PM
    • 5,594 Posts
    • 4,916 Thanks
    mgdavid
    While there has been nothing similar in the print medium over many, many, many years?

    Personally I still find the print media "worse" for this.
    Originally posted by greenglide
    Weren't most of us of a certain age pretty cynical about the press whereas the younger generations seem prepared to believe the *net without question.
    Whether that's due to the medium or the readers, I can't say.
    The questions that get the best answers are the questions that give most detail....
    • Straightbat
    • By Straightbat 7th Mar 18, 10:25 AM
    • 11 Posts
    • 1 Thanks
    Straightbat
    Poohsticks wrote: However, it is pretty straightforward to get an individual pension forecast online via gov.uk and everyone should be encouraged to do this.

    Interesting, I can't even get an online quote now. My approaching state pension age letter from October says it gives me all the information I need to claim my pension (starting this process seems to be the only way to try to get an online quote now) but omits to tell me my "invite code" that I need to do this!
    • 50Twuncle
    • By 50Twuncle 17th Mar 18, 10:11 AM
    • 8,284 Posts
    • 1,961 Thanks
    50Twuncle
    My on-line state pension forecast has me down as having 32 years of FULL NI contributions
    However - the whole of this period - I was contracted out (Civil Servant)
    According to https://www.moneysavingexpert.com/savings/state-pensions- this implies that I will receive full benefits (despite paying less contributions)
    I am totally confused
    How does this work ?
    • molerat
    • By molerat 17th Mar 18, 10:18 AM
    • 18,587 Posts
    • 12,739 Thanks
    molerat
    My on-line state pension forecast has me down as having 32 years of FULL NI contributions
    However - the whole of this period - I was contracted out (Civil Servant)
    According to https://www.moneysavingexpert.com/savings/state-pensions- this implies that I will receive full benefits (despite paying less contributions)
    I am totally confused
    How does this work ?
    Originally posted by 50Twuncle
    You do have a full record but for the period you were contracted out there will be a deduction. Your post 2016 contributions will most likely be the ones that make up the deficit so you will receive the full benefit at retirement. What exactly are the numbers on the forecast ?
    www.helpforheroes.org.uk/donations.html
    • Dazed and confused
    • By Dazed and confused 17th Mar 18, 10:21 AM
    • 2,558 Posts
    • 1,228 Thanks
    Dazed and confused
    As a minimum you should be on track to receive the same as you would have got if the system hadn't changed i.e. approx £120/week.

    But you can also now add £4.55/week for each additional year you make sufficient National insurance contributions (or are credited with a year for some other reason). This applies to 2016:17 tax year onwards so your current entitlement may already include an additional amount for 2016:17 if it was a qualifying year for you.

    If you go onto your personal tax account on gov.uk and look at the State Pension bit you should be provided with two figures, the amount you are currently entitled to (as of 05:04:2017) and the maximum amount you can get if you continue to contribute. It should also tell you how many years you need to contribute to get to the maximum. The maximum may well be £159.55.

    Ignore any COPE value.
    • 50Twuncle
    • By 50Twuncle 17th Mar 18, 10:43 AM
    • 8,284 Posts
    • 1,961 Thanks
    50Twuncle
    You do have a full record but for the period you were contracted out there will be a deduction. Your post 2016 contributions will most likely be the ones that make up the deficit so you will receive the full benefit at retirement. What exactly are the numbers on the forecast ?
    Originally posted by molerat


    * 32 years of full contributions
    * 14 years to contribute before 5 April 2030 (this was from 2016 !!)
    * 5 years when you did not contribute enough
    30 of those years are contracted out
    I am unlikely to be able to add any more years through work (living on an ill health pension - topped up by part time work) but am looking at buying more if possible

    I am currently 54 years old

    Last edited by 50Twuncle; 17-03-2018 at 10:46 AM.
    • molerat
    • By molerat 17th Mar 18, 10:46 AM
    • 18,587 Posts
    • 12,739 Thanks
    molerat


    * 32 years of full contributions
    * 14 years to contribute before 5 April 2030
    (this was from 2016 !!)
    * 5 years when you did not contribute enough
    30 of those years are contracted out
    I am unlikely to be able to add any more years through work but am looking at buying more if possible

    I am currently 54 years old

    Originally posted by 50Twuncle
    And the £ numbers ?
    Are you receiving benefits ?
    Get a new forecast, you can do it daily if you wish.
    Last edited by molerat; 17-03-2018 at 10:50 AM.
    www.helpforheroes.org.uk/donations.html
    • 50Twuncle
    • By 50Twuncle 17th Mar 18, 10:53 AM
    • 8,284 Posts
    • 1,961 Thanks
    50Twuncle
    And the £ numbers, it also states how many years you need to contribute.
    Are you receiving benefits ?
    Originally posted by molerat
    £124.38 per week with 8 years missing !
    I thought that the max years were 36 ?
    But if I pay the £5600 required to make up to 40 - is there any guarantee that my pension will increase to its max ?
    only DLA (so no NI benefits)
    And my work doesn't pay enough
    Last edited by 50Twuncle; 17-03-2018 at 10:56 AM.
    • molerat
    • By molerat 17th Mar 18, 10:58 AM
    • 18,587 Posts
    • 12,739 Thanks
    molerat
    £124.38 per week with 8 years missing !
    I thought that the max years were 36 ?
    Originally posted by 50Twuncle
    There are more numbers than just that one, there should be forecast amount, current amount and max achievable amount. Some of those amounts could be the same.

    During the transition from pre to post 2016 pension scheme the number of years changed from 30 for those retiring before the change to 35 for those starting work after the change. For those of us in between the number of years is irrelevant, it was the £ amount of pension accrued at April 2016 that counted which can be added to going forward. How much do you earn per week ? Over £113 you will be credited NI.
    Last edited by molerat; 17-03-2018 at 11:01 AM.
    www.helpforheroes.org.uk/donations.html
    • 50Twuncle
    • By 50Twuncle 17th Mar 18, 11:20 AM
    • 8,284 Posts
    • 1,961 Thanks
    50Twuncle
    There are more numbers than just that one, there should be forecast amount, current amount and max achievable amount. Some of those amounts could be the same.

    During the transition from pre to post 2016 pension scheme the number of years changed from 30 for those retiring before the change to 35 for those starting work after the change. For those of us in between the number of years is irrelevant, it was the £ amount of pension accrued at April 2016 that counted which can be added to going forward. How much do you earn per week ? Over £113 you will be credited NI.
    Originally posted by molerat
    I earn less than £113 per week but my works pension precludes me from claiming any benefits other than DLA !
    I have just tried to log on to GOV.UK website for more up to date forecast and been blocked for another 24 hours - their website access is a joke !!
    • molerat
    • By molerat 17th Mar 18, 11:52 AM
    • 18,587 Posts
    • 12,739 Thanks
    molerat
    Would you meet the criteria for ESA although not eligible to actually claim ?
    www.helpforheroes.org.uk/donations.html
    • mgdavid
    • By mgdavid 17th Mar 18, 6:22 PM
    • 5,594 Posts
    • 4,916 Thanks
    mgdavid
    ..........
    I have just tried to log on to GOV.UK website for more up to date forecast and been blocked for another 24 hours - their website access is a joke !!
    Originally posted by 50Twuncle
    I've been using the GOV Gateway for a few years now, I find it easy to use, very useful and reliable, never had any problems at all. Must be something you're doing not quite right.
    The questions that get the best answers are the questions that give most detail....
    • molerat
    • By molerat 17th Mar 18, 6:29 PM
    • 18,587 Posts
    • 12,739 Thanks
    molerat
    I've been using the GOV Gateway for a few years now, I find it easy to use, very useful and reliable, never had any problems at all. Must be something you're doing not quite right.
    Originally posted by mgdavid
    Agreed. It was a bit of a pain when they changed over and the verification process required a passport or photo licence so I lost access but then went to CRA info and not had a problem since.
    www.helpforheroes.org.uk/donations.html
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,526Posts Today

8,137Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin