Paying "full stamp" (whatever that is?)

If I remember correctly, she only has two years to make up, before she is fully paid up for the basic pension. You can pay additional contributions to do that.

At £6.50 an hour,

Good times for her but what are the implications for a future State pension?

She's paid in for 28 years (she's 46) but still obviously has 14 (or is it 19?) years to retirement........I can't imagine HMG allowing her to draw a full pension when she's only effectively contributed for that time (even though she's working).

What's the position? All advice appreciated.

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David W is correct - your wife (being a comparative youngster...!) requires only 30 qualifying years. And she will be credited with a full year of contributions for State Pension purposes, providing she earns at least £107 / week gross (2012-13). Your figures suggest she'll comfortably exceed that - but will only have to pay 12p NI per 4-weeks.

HTH

Thanks both, much appreciated.

If you earn the right amount, you can qualify for a state pension without paying a penny in NI or even get a rebate paid into an occupational pension.

If you're otherwise not employed but have any employment that can be classified as self-employed (eg sell a few widgets on ebay), you can pay Class 2 NI contributions (something like £2 a week) and that's sufficient to count as an NI 'stamp'. So for £100 a year you get covered, and then if you don't earn enough there's no extra NI to pay. You'd probably have to do a tax return though.

Theo (IANA tax accountant)