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Pension credit entitlement

 
 
bachgennewydd
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      11-10-2005, 11:22 PM
I have a relative who has a poor NI contribution record and will not
get a full state pension. Will this affect his entitlement to the
pension credit? He has no savings.

bachgennewydd

 
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nobody760
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      11-10-2005, 11:58 PM
I'm sure that others will give you a more precise answer but to the
best of my knowledge the only 'qualification' is that you are over 60
with less than 6000 of savings bachgennewydd - new boy?


 
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Dave xxxx
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      11-11-2005, 06:37 PM
bachgennewydd wrote:
> I have a relative who has a poor NI contribution record and will not
> get a full state pension. Will this affect his entitlement to the
> pension credit? He has no savings.
>
> bachgennewydd


I think the credit is to help them with poor NI contributions


 
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z
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      11-11-2005, 07:01 PM
I had, one year recieved a letter from the I&R offering me the
opportunity to pay money toward my NI contributions that I had failed
to maintain during a period of unemployment.

I never knew if this would be worth to do. Anyone care to advise
whether or not it is?

If as the above indicates, pension credit is to "top up" those pension
entitlements which were lacking due to low ni contributions, I assume
it was not necessary for me to make this payment.

Cheers

 
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Mike
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      11-11-2005, 08:07 PM
bachgennewydd wrote:

> I have a relative who has a poor NI contribution record and will not
> get a full state pension. Will this affect his entitlement to the
> pension credit? He has no savings.
>
> bachgennewydd
>


Pension Credit is not dependant on NI conts. It is means tested and the
equivalent of IS/JSA(Income Based) for the over 60s.
Most of the rules are similar however more generous treatment of savings
and the savings credit element (qualifying income includes State pension
and occupational pensions) mean many people who would not qualify for
IS/JSA(IB), do qualify for PC.
If your relative is within 4 months of their 60th birthday or already
over 60 they can claim. The telephone claim line is easiest, and they
will be able to tell your relative if they are wasting their time and
won't qualify.


Mike
 
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Martin Davies
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      11-12-2005, 08:57 AM
z wrote:
> I had, one year recieved a letter from the I&R offering me the
> opportunity to pay money toward my NI contributions that I had failed
> to maintain during a period of unemployment.
>
> I never knew if this would be worth to do. Anyone care to advise
> whether or not it is?
>
> If as the above indicates, pension credit is to "top up" those pension
> entitlements which were lacking due to low ni contributions, I assume
> it was not necessary for me to make this payment.
>
> Cheers


Depends on what your overall retirement income will be.
Though if you do pay NI for every year, you get more than simply basic state
pension anyway.

Martin <><

--
http://www.cashisallyouneed.co.uk/


 
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Andy Pandy
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      11-12-2005, 12:57 PM

"z" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed) ps.com...
> I had, one year recieved a letter from the I&R offering me the
> opportunity to pay money toward my NI contributions that I had failed
> to maintain during a period of unemployment.
>
> I never knew if this would be worth to do. Anyone care to advise
> whether or not it is?


That depends on your exact circumstances. It may not get you any more state
pension anyway as you are allowed about 5 years of your working life with no NI
contributions without it reducing the basic state pension. And it could reduce
PC or other means tested benefits...

> If as the above indicates, pension credit is to "top up" those pension
> entitlements which were lacking due to low ni contributions, I assume
> it was not necessary for me to make this payment.


The PC depends on *total* income and capital in retirement, not just state
pension income.

For instance if you had a well paid job with a good occupational pension, and
retired at 50, then it'd probably be worth paying enough voluntary contributions
to ensure a full basic state pension - since your occupational pension would
probably disqualify you from PC or HB etc.

If you are not going to have any pension other than the state pension, very
little SERPS, and no savings in retirement, then it'd probably be a waste of
money paying voluntary contributions since it'd just reduce your PC/other
benefits.

There again that's the current rules - they could change...

--
Andy


 
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QuickCalc admin
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      11-12-2005, 03:46 PM
Pension Credit queries:
Try this free calulator.
Simple, accurate, quick.
Available online.
Used by hundreds of advice agencies and govt departments etc (including
age concern advisors)

www(dot)quickcalc(dot)net

Choose pension credit from top row.

 
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