A quarter of retirees worse off under new state pension system

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A quarter of people retiring between 2016 and 2030 will be worse off under the new state pension rules, according to estimates published today by the Department of Work and Pensions.

Most people will benefit from the change to the new system, which grants is worth £155.65 a week to people retiring from April 2016 with 35 years’ national insurance contributions.

But those who have not reached the qualifying 35 years’ will not be eligible for the full amount.
During the first five years, almost three-in-ten people will receive around £100 less a year on average as a result of the switch. Roughly the same proportion of retirees will be worse off between 2020 and 2030, though the amount they could lose increases over time. Some 30% of people retiring in 2030 will lose £350 a year, on average.

The government’s estimates suggest men are a bit more likely to miss out under the new system. Around 30% of men retiring before 2030 will lose out, compared to 25% of women. 
Vince Smith Hughes, retirement expert at Prudential, welcomes the move to a simpler system, but says working out if you’ll be better or worse of is “incredibly difficult,” due to “the complexity of the component parts of the current system.”

“People who are likely to not receive the full amount are those who have contracted out. They may have been in a final salary scheme and not have a full national insurance record.”

He recommends requesting a state pension forecast to anyone looking to see what they’ll get when they reach retirement. This can be done at https://www.gov.uk/state-pension-statement. Alternatively, people can seek free guidance from the Pensions Advisory Service, or seek professional advice from an adviser.

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Pre change pensioners far worse off than future pensioners.

Please be aware that whilst the article refers to 35 years NI contributions, the link "national insurance" (in blue) is out of date and still refers to '30 years' contributions.

But from next April your pension will be worked out using the old and new pensions, and the best one will pay out. (And for the next 40 years or so unless the rules change yet again).
So is it really true to say that people will be losing out?
Or is it really that some will gain more than others?

Can anyone advise me where I can find the definition of, "a qualifying year" on an HMRC site?
Does NI have to be paid across a full tax year to qualify?
Or, does a specified amount of NI contribution have to be paid within a tax year?
If in a year NI has been part paid towards a 'Qualifying year,' can it be "topped up" at a reduced cost?

I think that Jeffrey is right - very misleading wording of the headline and within the article.  I did the homework when the new pension was announced, to see what happens to my additional pension - paid for by full "contracted in " NI for over 37 years. The information was available about increases and reductions for those contracted out. The press did not read everything in detail and are now telling  people that the info. was not there.
And people who were contracted out do have a "full NI record" - just one that says they are entitled to less than those who were contracted in -  they do not suddenly jump from current basic to the £155 new standard.
The money that they, and their employers saved in NI became part of their company or personal pension  contributions and therefore those pensions make up the deduction from full rate standard pension.
Also remember, all those building up to the full new standard pension, nearly £40pw higher than the current basic state pension, will be paying full rate NI - there is no more "contracting out".
Very shoddy writing in this article I'm afraid.

Thanks Xrat - this has been updated

Martin, people who retire before the new system have the option to buy up to £25 a week more state pension. The rates are good compared to annuities, but working out if they're good value depends on individuals' tax circumstances. There's an article here that goes into more detail: http://www.moneywise.co.uk/news/2015-10-12/how-to-buy-yourself-better-st...

Jeffrey, Ineedhelp, these figures are the DWP's own estimates for how many people will be better / worse off because of the changes to the state pension. Most people will gain, but some will be worse off. 

Contracting out is a factor, but not the only issue at play here. The DWP's estimates have little explanation, but it's been speculated that another factor is people needing 35, rather than 30 qualifying years. 

Xrat, unfortunately we've seen no full explanation of what a qualifying year is, apart from articles like this one on the DWP's website: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/480248/Your_State_Pension_explained_autumn_15.pdf

Thanks for the link Tom, I think I need to write to the DWP.

F.Y.I. I found definitions on the DWP site vauge,
"A qualifying year is one where either sufficient N.I. has been paid, or demed to have been paid."
To answer my own question, it needed to add,
"(on earnings above a lower limit of £5,772 for the 2015/16 tax year.)"