Hat tip to Martin Lewis, who is a little "cheesy" (as he admits) but seemingly "bang on the money" on this important issue. At the risk of seeming like being a pension obsessive, I have spent most of today trying to working out whether Gill and I have to pay extra National Insurance contributions in order to maximise our possible new state pension entitlements.
I have looked at our projections on the Gov.UK website and thanks to Martin Lewis, I think I have been seriously misled about our entitlement to a maximum new state pension,
It is all very complicated but really important, if you are of "a certain age". I had looked in the past at the Gov.UK website projections and had been reassured that both of us would be entitled to the full New State Pension (currently £203.85 per week) since we both had more than 35 years "full contributions".
I thought that the projections on the site that we both would not get this full amount (£203.85 per week) were probably wrong and surely inaccurate since we both had already more than the 35 years "full contributions".
However, what I failed to realise (but still not sure and hate the way this issue is not addressed on the Gov.uk website) is that there appears to be a potential massive difference between "full contributions" and "qualifying contributions".
So just because I have 41 years "full contributions" doesn't mean that I have 35 "qualifying contributions".
This is due to a possible number of reasons including low pay and being "contracted out" by your pensions scheme in the past. I suspect that being "contracted out" may be the reason that Gill and I do not appear to qualify for a full new state pension but will need to clarify.
I definitely agree with Martin that you need to check facts and options with the (check his video first)
Future Pension Centre on 0800 731 0175
or if you are already receiving the state pension
Pension Service on 0800 731 0469
If Martin is right that many people face losing out on possible huge amounts of money by not maximising their New State pension entitlement, then for crying out loud, check it out. What have you got to lose?
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