Hundreds of thousands missing out on full state pension : i News

The Government has been criticised for leaving pensioners in a state of “total confusion” about why some are not receiving the full state pension. The new flat rate state pension, which is £159.55 a week for this tax year, was introduced in April 2016 and is available to anyone who has built up 35 qualifying years’ worth of National Insurance credits. But i has received many emails from readers who say they are not receiving the full state pension, despite having worked for most of their adult life. Contracted out without being told The reason is often because they were contracted out – sometimes without their knowledge – at some point in their career. This meant they paid a reduced rate of national insurance in exchange for a lower state pension.

Readers say they were never told they had been contracted out. Others add they were told they had enough qualifying years, only to get a nasty surprise when they retired. According to government figures, more than 90,000 were denied the full state pension in the first five months of the new scheme. “I have been a state registered nurse for 42 years and have only recently found out that I will not be getting the flat rate state pension because I was contracted out. I was not aware that this had occurred and did not find out until I got my state pension forecast,” said Gillian Swain. Figures from the Department of Work and Pensions (DWP) show that 63,440 people were receiving the full state pension in August, five months after the new system was introduced. In total, almost 154,000 started receiving the state pension over the same time period – meaning more than half (90,560) did not qualify to receive the full amount. Over the full year this could amount to 200,000 people.
READ MORE : i NEWS
Advertisements

7 Comments

  1. The whole thing is a complicated mess. I will miss out on the full amount, as I was advised to contract out, which I did for 6 years. I do get a small pension, but I know my state pension will still fall short of the full amount.

    The government should ensure that people, who received bad advice at the time, are not out of pocket, and should make up the shortfall through pension credits.

    Liked by 1 person

  2. Elaine Davenport says….As I was born in January 1954, I have to wait until I’m 65 & five months to access my reduced state pension.

    Why isn’t every single woman in Britain asking Labour if they are going to return the pensions age back to the status quo ?.
    If the answer from Corbyn and co is YES, then goodbye to the Tory landslide this June.

    Liked by 1 person

  3. Here’s what to do if you are not receiving the full state pension due to contracting out
    Many pensioners say they are in a state of “total confusion” about why some are not receiving the full state pension. The reason is often because they were contracted out – sometimes without their knowledge – at some point in their career. This meant they paid a reduced rate of national insurance in exchange for a lower state pension. Here’s what you can do about it.

    Read more at: https://inews.co.uk/essentials/lifestyle/money/heres-what-to-do-if-you-are-not-receiving-the-full-state-pension-due-to-contracting-out/

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s