I don't really understand the state pension, it says it is based on ni contributions so does that mean you get more or less depending on how much you earned? And if you were on benefits all your life does that mean you don't get pension?
I am asking this hypothetically I am a long way from receiving pension yet:)
2006-12-29 07:54:34 · 4 answers · asked by cigaro19 5 in Business & Finance ➔ Taxes ➔ United Kingdom
There is more than one component to the UK pension.
The basic pension depends on how many "contribution years" you have. A contribution year is one where you have paid a specified minimum in national insurance. The number required to get the full pension is dependent on the length of your working life but is generally about 40 years. If you do not achieve this you will get a proportion of the basic pension. Moves are in hand to reduce this requirement to thirty years.
Women who are not working because they are raising children can be credited with contribution years.
The second part of the pension varies according to the actual contributions made, which in turn are dependent on your salary so you do get more if you have earned more.
Prior to about 1976 or 1977 there was a graduated contribution which worked in a similar way but I guess you do not need to know this.
At any time you can get a pension forecast by completing a form BR19 which can be downloaded from the Pensions Service website.
Anyone on benefits is credited with basic national insurance contributions and this will entitle them to the basic pension. It may then be topped up with other benefits according to their needs.
2006-12-29 20:54:36 · answer #1 · answered by tringyokel 6 · 0⤊ 0⤋
You have to have paid NI contributions for most of your working life to qualify for the basic state pension. You currently get an earnings-related supplement under the state second pension, but Tony and Gordon are planning to take this away.
If you are past state retirement age and you don't have enough income, it will be topped up by a means tested benefit. So if you spend your working life on benefits, you spend your retirement on benefits.
2006-12-29 16:03:42 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Its not how much you earn, but how many years you contribute. Into the system. Unlike me, if you have all your P60's to prove that you have contributed to the system you have to rely on their assessment, which at times can be said to be unreliable due to the enormous changes over the years the system has changed systems, IE from Kalamazoo to IT
2006-12-29 16:10:18 · answer #3 · answered by hotod 2 · 0⤊ 0⤋
No matter what age you are, it won't be that long.
2006-12-29 16:01:34 · answer #4 · answered by dot&carryone. 7 · 0⤊ 0⤋