Pension credit entitlement

Discussion in 'UK Tax Credits and Benefits' started by bachgennewydd, Nov 10, 2005.

  1. 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
     
    bachgennewydd, Nov 10, 2005
    #1
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  2. bachgennewydd

    nobody760 Guest

    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?
     
    nobody760, Nov 10, 2005
    #2
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  3. bachgennewydd

    Dave xxxx Guest

    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
     
    Dave xxxx, Nov 11, 2005
    #3
  4. bachgennewydd

    z Guest

    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
     
    z, Nov 11, 2005
    #4
  5. bachgennewydd

    Mike Guest

    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
     
    Mike, Nov 11, 2005
    #5
  6. 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/
     
    Martin Davies, Nov 12, 2005
    #6
  7. bachgennewydd

    Andy Pandy Guest

    "z" <> wrote in message
    news:...
    > 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
     
    Andy Pandy, Nov 12, 2005
    #7
  8. 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.
     
    QuickCalc admin, Nov 12, 2005
    #8
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