Pension entitlement

[AlunandFelicie]

I wonder if anyone has any knowledge of a disabled person’s entitlement to the state pension
After child raising my wife went into full time education to gain qualifications for the job she eventually took being then in full time employment ,in 2017 she was a victim of a RTA that has left her unable to work and in receipt of PIP at the higher rate.
On checking her future pension entitlement the years since the accident are shown as incomplete years with the possibility of ‘buying back’ at roughly £800 per year! Is this correct? As it seems to us that she is in effect being forced to use her PIP payments to fund her future pension? Or is there something we are missing or able to claim to make up the shortfall.
My wife doesn’t retire until 2029 so we would have to fund 12years missing contributions £9600
Thanks for any insight

 

[gus-lopez]

You need to contact the 'future pensions forecast team'.& go through it with them.
Another from the back of my memory is;
You need to phone to claim ESA and say that you want to make a credits only claim. They'll tell you that you can't get ESA because you haven't been working. You let them say it, then say: "I know that, but I want to make a credits only claim, please."
that way they credit you with NI contributions

 

[Puddleduck]

Did she also claim ESA? If so her "stamp" would have been paid but I have a feeling that PIP doesn't pay the NI stamp.

EDIT: Thanks gus-lopez

 

[Nanniemate]

I wonder if anyone has any knowledge of a disabled person’s entitlement to the state pension
After child raising my wife went into full time education to gain qualifications for the job she eventually took being then in full time employment ,in 2017 she was a victim of a RTA that has left her unable to work and in receipt of PIP at the higher rate.
On checking her future pension entitlement the years since the accident are shown as incomplete years with the possibility of ‘buying back’ at roughly £800 per year! Is this correct? As it seems to us that she is in effect being forced to use her PIP payments to fund her future pension? Or is there something we are missing or able to claim to make up the shortfall.
My wife doesn’t retire until 2029 so we would have to fund 12years missing contributions £9600
Thanks for any insight

Martin the moneyman has been doing loads on this lately may be worth looking at his links https://www.moneysavingexpert.com/news/tag/state-pensions/

 

[AlunandFelicie]

Did she also claim ESA? If so her "stamp" would have been paid but I have a feeling that PIP doesn't pay the NI stamp.

EDIT: Thanks gus-lopez

What is ESA?
We’ve worked all our lives so had/have no idea of what we should of claimed

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[Puddleduck]

What is ESA?
We’ve worked all our lives so had/have no idea of what we should of claimed

Employment Support Allowance. It's not made easy to claim and there are various levels of support plus some is income based and some contribution based.

 

[Kybod]

Employment and Support Allowance (ESA)

Employment and Support Allowance (ESA) money if you cannot work because of illness or disability - rates, eligibility, apply, assessment.

www.gov.uk

 

[Puddleduck]

Probably too late for you but for anyone else it is well worth asking your local council if they have a benefits advisor.

 

[carolyn]

Employment and Support Allowance (ESA)

Employment and Support Allowance (ESA) money if you cannot work because of illness or disability - rates, eligibility, apply, assessment.

www.gov.uk

That explains it much more clearly than the Citizens advice website. It clarifies what happens if you’re already drawing a personal pension which the OP might be. The PIP isn’t affected but ESA would be and with regards to type 1 NI contributions.

 

[Puddleduck]

Yes, ESA is a "working age" benefit and ceased at age 66.

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[pappajohn]

If she's unable to work she should be claiming unemployment benefit.
Unemployment benefit pays NI contributions.
I claimed dole for around 8 years up to retiring due to disability plus PIP at the higher rate which I still get.
30 complete contribution years qualify for full pension

 

[CazPaul]

A lot of it will stop after the 26th March announcement it’s rumoured

 

[rolosroller]

If she's unable to work she should be claiming unemployment benefit.
Unemployment benefit pays NI contributions.
I claimed dole for around 8 years up to retiring due to disability plus PIP at the higher rate which I still get.
30 complete contribution years qualify for full pension

I think it went up to 35 years. But that might be fake news

 

[pampam]

If not working or receiving sick pay your nat insurance should be credited for you:
Also when caring for children

 

[tonka]

If she's unable to work she should be claiming unemployment benefit.
Unemployment benefit pays NI contributions.
I claimed dole for around 8 years up to retiring due to disability plus PIP at the higher rate which I still get.
30 complete contribution years qualify for full pension

pappajohn I have seen you mention this 30 years on a couple of posts..
Just to mention / advise / let you know / update etc,, You now need 35 years contributions for a full pension..
My wife had 29 years in the bag when we sold our business in 2006 and "semi retired"... So only 1 missing year.. They then moved the goalposts ( unsure when ) and she's now 6 years short

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[Nanniemate]

pappajohn I have seen you mention this 30 years on a couple of posts..
Just to mention / advise / let you know / update etc,, You now need 35 years contributions for a full pension..
My wife had 29 years in the bag when we sold our business in 2006 and "semi retired"... So only 1 missing year.. They then moved the goalposts ( unsure when ) and she's now 6 years short

You can buy years back but has to be done quickly, time running out .check out Martin Lewis it maybe helpful.

 

[SVMC15]

Have you also checked the state pension forecast? You may find that you don't need to buy all 12 missing years to reach the maximum 35 years required for a full state pension. There may also be second state pension entitlements that are added on which increases the entitlement even if you haven't got the full contributions.

 

[Puddleduck]

And possible pension credits???

 

[pappajohn]

You can buy years back but has to be done quickly, time running out .check out Martin Lewis it maybe helpful.

You can only buy 6 years, any more are lost.

 

[Emmit]

Does this apply to you;

Home Responsibilities Protection (HRP) was a scheme to help protect parents’ and carers’ State Pension. National Insurance credits replaced HRP in 2010.

You’ll have received HRP automatically if between 6 April 1978 and 5 April 2010 you were claiming:

• Child Benefit for a child under 16
• Income Support because you were looking after a sick or disabled person and were not available for work

You’ll need to apply for HRP if you think it’s missing from your National Insurance (NI) record.

Just a thought.

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[Silver-Fox]

Call citizens advice help line.

They should and will run through everything.
The staff are knowledgeable and helpfull and can even fill out the forms for you online.

 

[tonka]

You can buy years back but has to be done quickly, time running out .check out Martin Lewis it maybe helpful.

Already on the case.. Phoned the helpline a few weeks ago...
We are ok as it's still over 2 years before she gets state pension and you can back pay 6 years as standard.
The "time running out" that Martin lewis is mentioning is more for people owing a lot more years..
For some reason the helpline confirmed it's only 5 years missing, so that saved a bit.. They passed us to HMRC who have issued bank details and a reference number so we can pay to top up. For some reason the online system would not let us do it but that could just be our circumstances...

 

[Silver-Fox]

Already on the case.. Phoned the helpline a few weeks ago...
We are ok as it's still over 2 years before she gets state pension and you can back pay 6 years as standard.
The "time running out" that Martin lewis is mentioning is more for people owing a lot more years..
For some reason the helpline confirmed it's only 5 years missing, so that saved a bit.. They passed us to HMRC who have issued bank details and a reference number so we can pay to top up. For some reason the online system would not let us do it but that could just be our circumstances...

You only need a certain amount of years to get a full state pension, unfortunately I’ve forgotten how many now

 

[tonka]

You only need a certain amount of years to get a full state pension, unfortunately I’ve forgotten how many now

It was 30 years but they changed it a while ago it is now 35 years..
Lucky for me i had 35 years in when i finished work, had my first payment this week..

 

[Silver-Fox]

It was 30 years but they changed it a while ago it is now 35 years..
Lucky for me i had 35 years in when i finished work, had my first payment this week..

Woo hoo

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[BrochMike]

You only need a certain amount of years to get a full state pension, unfortunately I’ve forgotten how many now

New state pension is payable after minimum of 10yrs of NI contributions but to get the full amount you need at least 35yrs (if you were contracted out during your career, this impacts what you will get).

The new State Pension

How to get and claim your State Pension, State Pension age - for men born on or after 6 April 1951 and women born on or after 6 April 1953.

www.gov.uk

 

[StillGoing]

There was a state earnings related pension scheme (SERPS), also known as the ‘additional state pension,’ which operated between 1978 and 2002. It was replaced by the state second pension, which ran until 2016. As I retired on the new state pension, I understand my SERPS pot was converted into additional NI years towards the new state pension. This meant I got the full new state pension even though I had less than 35 years contributions - the difference made up from SERPS.

 

[Bolti]

There was a state earnings related pension scheme (SERPS), also known as the ‘additional state pension,’ which operated between 1978 and 2002. It was replaced by the state second pension, which ran until 2016. As I retired on the new state pension, I understand my SERPS pot was converted into additional NI years towards the new state pension. This meant I got the full new state pension even though I had less than 35 years contributions - the difference made up from SERPS.

So you were in serps and got years added, I was contacted out of serps and got years deducted. Do you get the feeling they made all this up in 2016?

 

[BrochMike]

SERPS ('contracted IN') can boost your pension via a 'protected payment', in effect meaning you can get more than the full new pension (or get equivalent of the full pension with less than 35yrs contributions).

How on earth a mere human is meant to work it out is beyond me!

Perhaps that's why they determined it was necessary to simplify?

 

[Minxy]

Already on the case.. Phoned the helpline a few weeks ago...
We are ok as it's still over 2 years before she gets state pension and you can back pay 6 years as standard.
The "time running out" that Martin lewis is mentioning is more for people owing a lot more years..
For some reason the helpline confirmed it's only 5 years missing, so that saved a bit.. They passed us to HMRC who have issued bank details and a reference number so we can pay to top up. For some reason the online system would not let us do it but that could just be our circumstances...

You only need to pay some of the years now if they are going to be definitely required to make up her full 35 years and will 'drop off' the payable list in the new tax year, if not then stick the money in a savings account until you need to pay. My hubby needed a good few years paying but we left it to a few days before he was entitled to his pension before topping up, they just paid the backdated extra pension as a lump sum a month later and increased his future payments accordingly.

Also check that all additional year payments will make a sensible difference to what she'll get as for many topping up the 5th year often only adds pence so you never recover the outlay.

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