State Pension Changes NI Contributions

[rualexander]

I thought if you had 35 full contribution years then it doesn’t matter how far ahead of state pension age you retire. As you won’t be collecting the state part, till state pension age. Certainly I can’t see anything about having to work to 66 to get full pension. You are referring to the basic state pension, not the additional one many of us opt out of?

This is my understanding too.
Never heard of having to pay more years than the current 35, to qualify for the 'new' state pension

 

[PaulSB]

Sorry I don't understand you point, if there indeed was one?

Of course I had a point, why else bother posting?

You have "46 years of full contributions" all this means are the years are full. Nothing else.

As I understood your post you're below SP age and your earlier post states from the .gov.uk we site:

"3 years to contribute before April 3rd 2026"

Read the phrasing carefully, it could be interpreted as "3 years to contribute before April 3rd 2026" to qualify for a full SP.

I am only talking from direct experience of my wife's SP, conversations with the DWP, the .gov.uk website and the advice of our Financial Advisor.

I would not be surprised if in 12 months time your forecast shows you can't get the full SP without making up a missing year or years. It will be three by 2026.

 

[PaulSB]

This is my understanding too.
Never heard of having to pay more years than the current 35, to qualify for the 'new' state pension

I feel part of the reason people don't get this is the way the SP is viewed. It is a state benefit, not a true pension. All current SPs are paid from the NI contributions made by those in work. Effectively those in work are supporting those who are retired.

Imagine a situation where an individual leaves school at 16, works and pays NI for 35 years and stops work at age 51. That individual would have the full 35 years but would have made no contributions for 15 years assuming an SP age of 66. If everyone did this the system would collapse.

The DWP would deem that individual had not supported the system through not paying NI.

It's the .gov.uk forecast which counts. Nothing else.

 

[november4]

Depends how many missing years you have and whether you think you’ll hit 35 years contributions before you retire anyway. You don’t get a bigger pension with more than 35 years contributions. But it makes a difference below that.

This exactly, I'm keeping an eye on mine, timewise

 

[Deleted User]

So does this mean anyone who retires before state pension age won't be getting the full amount?

My missus retired at 55 having paid NI for 37 yrs, does this mean she'll have a shortfall?

I'm looking at going in a couple of yrs
and will have 38 full yrs in so will I also have a shortfall even though the Gov website says I cannot get any more?

Surely if everyone who retires before state pension age gets penalised it would be common knowledge, I know plenty of old boys who retired early and have never heard them complain about getting stiffed, taxed on it maybe but that's another matter.

 

[SpokeyDokey]

I thought if you had 35 full contribution years then it doesn’t matter how far ahead of state pension age you retire. As you won’t be collecting the state part, till state pension age. Certainly I can’t see anything about having to work to 66 to get full pension. You are referring to the basic state pension, not the additional one many of us opt out of?

You are correct.

Saves me posting what you have posted.

I get my full State Pension and certainly didn't work until I was 66.

 

[SpokeyDokey]

So does this mean anyone who retires before state pension age won't be getting the full amount?

My missus retired at 55 having paid NI for 37 yrs, does this mean she'll have a shortfall?

I'm looking at going in a couple of yrs
and will have 38 full yrs in so will I also have a shortfall even though the Gov website says I cannot get any more?

Surely if everyone who retires before state pension age gets penalised it would be common knowledge, I know plenty of old boys who retired early and have never heard them complain about getting stiffed, taxed on it maybe but that's another matter.

No to your initial question, provided you have 35 years contribution you can retire any time you like before your official State Pension age and you will get the full State Pension.

Maybe more if you contributed to SSP or S2P.

I repeat:

There is absolutely no requirement to work until your State Pension age to receive full State Pension.

Confusion can arise if a person retires before their State Pension age and does not have their full 35 years of contributions.

These are the appropriate rules in the above situation:

https://www.gov.uk/voluntary-national-insurance-contributions

 

[PK99]

No to your initial question, provided you have 35 years contribution you can retire any time you like before your official State Pension age and you will get the full state Pension.

Maybe more if you contributed to SSP or S2P.

Or less if you have a company pension and some or all years were contracted out.

 

[MontyVeda]

...
Imagine a situation where an individual leaves school at 16, works and pays NI for 35 years and stops work at age 51. That individual would have the full 35 years but would have made no contributions for 15 years assuming an SP age of 66. If everyone did this the system would collapse.

...

many can't afford to do that yet the system is (allegedly) already on the verge of collapse and has been for years.

...
The DWP would deem that individual had not supported the system through not paying NI.

...

surely the DWP deems a person has supported the system after 35 years of NI payments

 

[SpokeyDokey]

Or less if you have a company pension and some or all years were contracted out.

Yes, indeed.

My S2P contributions gave me £14600 but this was then reduced to £11600* re me being contracted out at some stage.

A strange fact - it is seemingly impossible to get a breakdown of how the latter calculation is derived.

*My pension only kicked in last November and this is the pre-23/24 rise figure.

 

[SpokeyDokey]

I feel part of the reason people don't get this is the way the SP is viewed. It is a state benefit, not a true pension. All current SPs are paid from the NI contributions made by those in work. Effectively those in work are supporting those who are retired.

Imagine a situation where an individual leaves school at 16, works and pays NI for 35 years and stops work at age 51. That individual would have the full 35 years but would have made no contributions for 15 years assuming an SP age of 66. If everyone did this the system would collapse.

The DWP would deem that individual had not supported the system through not paying NI.

It's the .gov.uk forecast which counts. Nothing else.

That's not my experience and there is nothing on the .gov website to suggest this is the case.

Ime there is absolutely no requirement to work until State Pension age to get the full State Pension.

The only requirement is 35 years full NI contributions.

Myself and at least two friends all retired well before our State Pension ages and now receive the full State Pension - two of us, including me, get this plus additional S2P/SSP payments.

If you have any different info' to the aforementioned position perhaps you could provide a link?

***

There is a lot of confusion around this subject tbh.

One is the 'why do I have to keep paying NI if I have 35 years of full contributions?' which is answered below - basically you continue paying until State Pension age IF YOU WORK to fund people who are in a situation where through no fault of their own they do not have enough NI years of their own and never will do.

https://www.ii.co.uk/analysis-comme...e-once-ive-paid-enough-state-pension-ii510447

NB: please read the above article thoroughly. The scheme is that 35 full years NI contributions will give you a full State Pension.

However, due to various scheme changes over the years SOME people may have to make up any shortfalls accrued under previous schemes - this is where things can get very messy and MAY mean that there will be a shortfall on the amount of State Pension you will be paid (despite having 35 years full payments) and you MAY be able to compensate for this with extra payments.

If in doubt check your personal forecast with HMRC or a qualified person eg your accountant etc.

This will give you the amount you will receive based on your current level of contributions and the current rate of State Pension payment.

Qualifying years may change over time subject to Government whims plus the State Pension amount generally rises annually although there is nothing to say it cannot remain static year to year.

 

[Slick]

No to your initial question, provided you have 35 years contribution you can retire any time you like before your official State Pension age and you will get the full State Pension.

Maybe more if you contributed to SSP or S2P.

I repeat:

There is absolutely no requirement to work until your State Pension age to receive full State Pension.

Confusion can arise if a person retires before their State Pension age and does not have their full 35 years of contributions.

These are the appropriate rules in the above situation:

https://www.gov.uk/voluntary-national-insurance-contributions

That's a relief, as that was always my understanding. At 53, having missed only year due to working 714, I've already paid in more than my share thank you very much, and don't intend on waiting until the government deem to have squeezed enough out of me before retirement.

 

[OldShep]

I’m young enough to get the new pension. Born 1952. I stopped paying NI aged 60 and get AIUI the full pension currently £1004.24 / mth.
I don’t think I’d of got more if paying NI until 65.

 

[SpokeyDokey]

I’m young enough to get the new pension. Born 1952. I stopped paying NI aged 60 and get AIUI the full pension currently £1004.24 / mth.
I don’t think I’d of got more if paying NI until 65.

You are being paid more than the full New State Pension which is for 23/24 £10600 pa.

You must've made some S2P or SSP payments at some stage in your career.

 

[Slick]

I've just checked mine, and as I suspected, I've been fully paid up for some years now and due to collect £11,180,30 per annum from around 2 weeks before I probably croak it.

It did say this though, which kind of feeds into what @PaulSB was saying.

If you’re working you may still need to pay National Insurance contributions until DOB 2036 as they fund other state benefits and the NHS.