State Pension Question

[johnny.5]

if you pay more in do you get more out per week ?

[roslyn251254]

Over the years you will have paid National Insurance contributions.....depending on how many full tears you paid determines how much stste pension you get ....up to a maximum at present of £884.80 every 4 weeks...

[roslyn251254]

..Years..stAte...! sorry

[youngmafbog]

It's on time paid in rather than amount paid in - unfortunately!

[New Judge]

I'm atraid you've stared me off.  😀

"It's on time paid in rather than amount paid in - unfortunately!"

Not only unfortunately, but outrageously.

You can, in fact, make no NI contributions at all, but still be entitled to the full State Pension.  At present, NI is deducted on earnings over £242 per week (£12,584 per annum). However, if you earn more than £123 per week (£6,396 pa) but less than £12,584 you pay no NI but are credited with a "qualifying year" for pension purposes. If you complete the minimum number of years required at those earnings, even though you have never paid a penny in NI, you will receive the full State Pension.

Meanwhile, somebody earning £50,000 a year will pay £2,993 each and every year nd they will receive exactly the same pension.

It's actully worse than that because some people can earn no money at all, but still be credited with qualifying years, but I won't go into that.

Hopefully you can see why I'm outraged!  😬

[johnny.5]

thank you for the replies

but 

is there a maximum number of years you have to pay into NI?

and if you reach that target do you still have to pay NI?

 

[newmodarmy]

 NI continues to be payable until state pension age. So you could have 50 years' contributions and get no more than someone with far fewer years.

[brainiac]

If you’re a man you usually need:

30 qualifying years if you were born between 1945 and 1951

44 qualifying years if you were born before 1945

If you’re a woman you usually need:

30 qualifying years if you were born between 1950 and 1953

39 qualifying years if were born before 1950

[Togo]

The minimum number of years required for "full" State pension was increased from 30yrs to 35yrs in 2016. I paid full contributions for almost 50 years and was never advised that my nigh on 20 year extra payments was being taken to give a non contributor my funds. Had I paid the same amounts into a private health and pension scheme I would be very well off indeed with no need to trouble the enaichess. 

[johnny.5]

so I just checked 43 years full NI are my contributions now going to some elese ?

[johnny.5]

just read this on the gateway

 

Your forecast

is not a guarantee and is based on the current law

is based on your National Insurance record up to 5 April 2024

does not include any increase due to inflation £221.20 is the most you can get

You cannot improve your forecast any more.

If you’re working you may still need to pay National Insurance contributions until 16 November 2032 as they fund other state benefits and the NHS.

[Bazile]

Is there such a thing as higher rate state pension ?

[Auntypoll]

If everyone is entitled to the full state pension why the need for pension credit?

[ladybirder]

I paid into SERPS for 18 years I think it was. 

[ladybirder]

^ That was to Bazile.

[brainiac]

Auntypoll - If you haven't paid in in enough qualifying years, have no other income and savings of less than £10,000 you can get your pension topped up to the full State pension by Pension Credit.

Pension Credit will also get you a reduced Council Tax bill (sometimes no bill at all) reduced dental charges, reduced water bills and other benefits.  I don't understand why there are a reported several hundred thousand people entitled to PC who do not claim it.

[Auntypoll]

Anyway, the pension you recive today is not paid for out of the money you put into the pot in the past, its paid for by NI contributions from working people today. 

[Auntypoll]

Brainiac, thats what i thought but New Judge stated

' You can, in fact, make no NI contributions at all, but still be entitled to the full State Pension.'

thats why I asked.

[Bazile]

So , how do you know if you paid into SERPS and how does it work with respect to getting a higher pension 

[ladybirder]

Paying money into SERPS (State Enrolled Pension Scheme) for 18 years has given me an SP of £297 a week.

Is it only me on here that chose to do this?

[brainiac]

Auntypoll - NJ's point: However, if you earn more than £123 per week (£6,396 pa) but less than £12,584 you pay no NI but are credited with a "qualifying year" for pension purposes. 

So if you had earned between those two figures for the required number of qualifying years you would get a full State Pension, but never have paid anything in.