To be shocked if this is true . State pension and benefits …?

[Springtimesoo]

I have worked all my life apart from
4 year degree( 3 year plus prof qualification )
and
a period at home when I had 2 dc under two and we could not afford nursery fees.

have just checked my pension forcast Which says that although I have paid 35 years in full , i will not get a full pension .

it seems that to get a full pension i need to pay just over 3k .

my friend , who is by choice long term unemployed. ( long story) says that she will get a full pension as she is on benefits .

how is that fair ? Its not true is it ?

Why haven’t you paid into a private pension?

I'm sorry but for some reason this really made me laugh!

Can someone please explain what contracted out means. I have paid into a pension scheme in every job I've had, as I presume everyone does.

That would be silly because then they wouldn't have enough to live off and then they'd claim benefits... which is more expensive to administer.

You may as well argue someone in rented accommodation, shouldn't get extra help because they should have bought a house or people who are on a low wage, should get less too.

Very very few people never work, they'd normally be either physically or mentally ill.

People on disability benefits often don't have choices. You can't say they should spend their retirement in even worse poverty because they only deserve a reduced pension.

If you were registered for Child Benefit, you automatically get pension credit for all those years, even if you do not work at all.

Yes I had eight years of being contracted out due to working for the nhs but thankfully as dd was young it still counted for full NI years. 🤷🏻‍♀️

You NI contributions were put in a private scheme instead of the state one (yes i know there isn't one but for ease of explanation)

That then pays you whatever value it has gained... or not!

This would included disabled people and caters etc.

The kicking downwards on this thread is disgusting.

Let's face it the State Pension is the mimimum pension, people are advised to also pay into another pension to top it up. Not that that's always possible, of course. But if you're bemoaning very poor people getting the same pension as you, then paying in to a scheme yourself seems a sensible option.

I've no problem with people receiving NI credits.

Those years of claiming child benefit have contributed towards your contribution record, basically for every week of CB you were credited with a NI contribution.
It used to be called Home Responsibility Scheme.

If they can live off benefits they can live off a state pension. Most people who live off benefits then get state pension and housing allowance plus all sorts of other benefits, it's a joke for people like op and myself who have had periods of being contracted out altogether.

It seems unfair have to pay over 3k within 6!weeks . Great idea re poss invest it instead . Thanks . Hope you all get sorted .

It certainly seems that way, yes. When DH wasn't working, we got everything paid for except the rent and mortgage. If it had lasted any longer than it did, we would have got help with those too. We got tax credits , free prescriptions, dentistry, free school meals, half price school trips, etc. Now that he's working we have to find all that and he isn't on a high salary and I'm part time min wage. We often say we're better off on benefits. Low-middle income families are often the ones in the sh*t and have to rely on back up savings.

I did pay into another pension and that's why I was contracted out of a state pension. How is that fair.

Not all pensions schemes before 2016 meant you were contracted-out, this only applied to certain defined-benefit schemes where you benefitted from paying lower NI contributions (normally public-sector schemes like government and NHS etc). I have 5 missing years from my record during my UG and PG education, and have now banked 30 NI years, but this is only counting as 27 for pension purposes, as I was previously contracted out. So instead of needing another 5 years to hit maximum state pension eligibility, I need another 8 years of contributions. I am 17 years off state pension retirement age, so don't anticipate this being a problem...

Check your personal record, it's the only way to be certain.

However.

Those in benefits probably don't own their own house and will need to continue paying rent above any contributions they get towards it, probably haven't managed to build up any savings or have paid off a mortgage and have equity in a house. Nor will they have a private pension on top.

So although on paper it may seem unequal they are known to have a harder 'retirement' financially.

Im not on benefits btw but I agree with above poster that focussing on own situation will make you much happier.

@Springtimesoo You need to check with HMRC and also DWP. I was pushed from one to the other and in the end it was DWP who had to sort it out. I had to send letters recorded delivery.

I I'd had 38 years of contributions, but some were at a lower rate (as I was self employed for some of the time.)

I would have received about 85% of the state pension on that (and I'd been told years before that my 35 years were enough which is why I stopped paying NI for my last few years of employment.)

I had to top up by £600 and gladly did so, as I would be receiving far more than that with a full pension.

You don't have to find £3k- only if you want to get 100% of the new pension. You can choose not to, and it depends on which you feel is the better option.

They will credit you for time at home looking after children. I think Child Benefit has to be paid in your name but rules might have changed when CB rules changed.
it’s worth checking with them.

You've already invested it! You've invested it in your employer pension scheme.

Why within 6 weeks? Are you 67 and about to retire on your state pension?

I've just done my forecast online (knowing I'd been contracted out of SERPS and therefore not entitled to the full pension amount) and now I'm more confused.

It tells me that my forecast is £185.15 per week (ie the full amount, which I wasn't expecting) and it's not until I click through to the section on being contracted out that it says that the estimate of my Contracted Out Pension Equivalent (COPE) is £29 per week. So will my state pension be the standard amount minus £29?

This page suggests that I can increase it a bit (about £5 a week) for each qualifying year I pay after April 2016:
www.gov.uk/new-state-pension/how-its-calculated

So if I contribute at least another 6 qualifying years, will that cover the missing COPE amount?

I have 40 years of credits but still need another 2 in order to get full state pension. I've had no breaks in contributions since I was 16. I had some years contracted out so would have benefitted from reduced NI contributions but still would have contributed more than someone who wasn't working.

If you were contracted out, the money went into the other scheme. It's not lost, it's just there instead of in your state pension record.

The best money you can buy is to fill up your state pension, so do it if you can.

I'm surprised you were contacted out in 2016 though as most schemes had ended it by then, so check with that scheme that the info is right.

I have the opposite problem, I've got my 35(+) years so have full pension, but I'll still pay as much NI and not get any more pension for it. You're welcome.

The ability to back pay is closing on 5th April.