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  • FIRST POST
    • happyhero
    • By happyhero 16th Mar 17, 9:43 PM
    • 1,102Posts
    • 54Thanks
    happyhero
    State Pension for me - confused - help please
    • #1
    • 16th Mar 17, 9:43 PM
    State Pension for me - confused - help please 16th Mar 17 at 9:43 PM
    I'm struggling a bit with state pension info online to make it clear for my particular case.

    I'm 56 born 1961. I left work in 2005 to live off savings/investments. At that time I had 30 qualifying NI years which I'm sure I phoned up about and was told that would give me a full state pension but when I did a quick state pension forecast online last year it looked like that 30 years was not enough and I wouldn't get a full state pension.

    Have I got something wrong/mixed up?

    Will I get a full state pension?

    Should I and could I top my state pension up?

    If I could what would it likely cost me?

    Would the money be better directed to a SIPP as I am a keen investor?
Page 2
    • roxy28
    • By roxy28 18th Mar 17, 4:56 PM
    • 624 Posts
    • 57 Thanks
    roxy28
    I edited my post re 9th year whilst you were posting.

    Years can be purchased at the in year price up to 2 years after the end of the year so 2016-17 needs to be purchased by 5 April 2019 to maintain the current price. After then they increase to the price of the year when purchased and are available until the end of 6 years so 5 April 2023 for 16-17. You cannot buy in advance so will have to buy as you go along. 16-17 is £733.20, 17-18 will be £741, each year increasing roughly with CPI.
    Originally posted by molerat
    For someone who is retired now and reaches SP age in march 2019 can they buy 2 years worth of NI to increase SP amount.
    Years 2016/17 2017/18 but not 2018/19? and can the 2 years be paid together after year 2017/18.
    • molerat
    • By molerat 18th Mar 17, 5:06 PM
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    molerat
    Yes. You cannot buy the year you reach SPA. Buying them together will not be a problem.
    www.helpforheroes.org.uk/donations.html
    • roxy28
    • By roxy28 18th Mar 17, 6:33 PM
    • 624 Posts
    • 57 Thanks
    roxy28
    Yes. You cannot buy the year you reach SPA. Buying them together will not be a problem.
    Originally posted by molerat
    Ok thanks for the reply.

    My uncle who this applies to was unsure if the tax year 2017/18 was ok to buy.

    Also is there any advantage in buying 2016/17 after april 6th this year
    • molerat
    • By molerat 18th Mar 17, 7:03 PM
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    molerat
    The advantage is in buying them as late as possible. The earliest,16/17, will stay at the same price so the money can be put away in an interest earning account plus it is safe if he falls under a bus
    www.helpforheroes.org.uk/donations.html
    • roxy28
    • By roxy28 19th Mar 17, 4:59 PM
    • 624 Posts
    • 57 Thanks
    roxy28
    The advantage is in buying them as late as possible. The earliest,16/17, will stay at the same price so the money can be put away in an interest earning account plus it is safe if he falls under a bus
    Originally posted by molerat
    Ok thanks again, have passed info on.
    • happyhero
    • By happyhero 28th Mar 17, 8:07 PM
    • 1,102 Posts
    • 54 Thanks
    happyhero
    I had to resurrect my post from a few weeks back as I was amazed with some new info I found and felt it was relevant to my case.



    Basically I got my wifeís State Pension forecast and although she is only a few months different in age to me and has only ever done part time work between 4 pregnancies and periods of not working except for when she left school and did a couple of years working for British Home stores, she seems to have accumulated enough contributions to be nearly on the new maximum of £155 with a figure of £151.


    How is this possible, I worked for 30 years solid achieving a £119 weekly figure and Iím 9 years short to make the new £155 figure, and she has a messy mostly part time past which already gives her £151 per week and only 2 years required to make £155?



    Lovely if we can both make our SPís up to max without too much cost but Iím almost scared to ask about hers in case itís a mistake.


    Hereís her SP forecast


    Your State Pension
    You can get your State Pension on 30 August 2028. Your forecast is
    £155.65 a week
    £676.80 a month, £8,121.59 a year
    Your forecast
    • is not a guarantee and is based on the current law
    • does not include any increase due to inflation
    You need to continue to contribute National Insurance to reach your forecast
    Estimate based on your National Insurance record up to 5 April 2016
    • £151.20 a week
    Forecast if you contribute another 2 years before 5 April 2028
    • £155.65 a week
    £155.65 is the most you can get
    You cannot improve your forecast any further, unless you choose to put off claiming.
    If youíre working you may still need to pay National Insurance contributions until 30 August 2028 as they fund other state benefits and the NHS.
    View your National Insurance record
    How contracting out affects your pension income
    Like most people, you were contracted out of part of the State Pension.
    More about how contracting out has affected your pension income.
    Putting off claiming
    When you are 67, you can put off claiming your State Pension. Doing this may mean you get extra State Pension when you do come to claim it. The extra amount, along with your State Pension, forms part of your taxable income.

    You were contracted out
    In the past youíve been part of one or more contracted out pension schemes, such as workplace or personal pension schemes.
    When you were contracted out:
    • you and your employers paid lower rate National Insurance contributions; or
    • some of your National Insurance contributions were paid into your private pension schemes instead
    Contracted Out Pension Equivalent (COPE)
    Your workplace or personal pension scheme should include an amount of pension which will, in most cases, be equal to the additional State Pension you would have been paid. We call this amount your Contracted Out Pension Equivalent (COPE). Your COPE estimate is shown below.
    The COPE amount is paid as part of your other pension schemes, not by the government. The total amount of pension paid by your workplace or personal pension scheme will depend on the scheme and on any investment choices.
    Your COPE estimate is £4.45 a week.




    How is this possible?
    • LHW99
    • By LHW99 28th Mar 17, 8:21 PM
    • 962 Posts
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    LHW99
    If your wife was claiming child benefit, then she could have been given a number of years credits towards State Pension.
    Also you can pay NI contributions as long as you earn over a certain lower limit, and these still count towards the total number of years.
    • molerat
    • By molerat 28th Mar 17, 8:35 PM
    • 17,332 Posts
    • 11,517 Thanks
    molerat
    She has at least 35 years contributions, the NI record will show how they were obtained. The big difference between the two of you is that she has not got the occupational pension which you paid lower NI for. Her COPE amount is only £4.45 whereas yours is £85.27 so you get the old 30 year pension as it is higher and she gets the new.
    www.helpforheroes.org.uk/donations.html
    • xylophone
    • By xylophone 28th Mar 17, 11:04 PM
    • 23,442 Posts
    • 13,627 Thanks
    xylophone
    For each of you two calculations will have been done at 6.4.2016.

    The starting amount for each of you will have been the higher of the two.

    Calc 1 Old Rules

    Full BSP for 30 years NI ( for your wife, this could have included credits while she was in receipt of CB)

    plus (any SERPS/S2P minus a deduction for contracting out).

    Calc 2 New Rules

    Full NSP - COPE.

    The New Rules second calculation for you would have given £155.65 - £85.27 = £70.38.

    Clearly the calculation under the old rules gave you the higher starting amount.

    The second calculation for your wife would have been £155.65 - £4.45 =

    £151.20.

    It seems likely that the New Rules calculation was the higher of the two in your wife's case.
    • happyhero
    • By happyhero 29th Mar 17, 12:33 AM
    • 1,102 Posts
    • 54 Thanks
    happyhero
    Thanks guys for the responses, so it seems having kids gave us money instead of what usually happens where they bleed us dry

    What actually happened was my wife was married before we got together and she had 2 kids then and then again with me another 2 (so total ages now are 32, 30, 17 and 11) so this has kept child benefit coming in for a long time.

    I picked up all kids in the end (first 2 were only 5 and 7 when I came along) but I wont tell them our good news or they'll expect a rise from us

    I'm surprised what an effect having kids can have on this. Makes me think of what my wife's sister said. She lives in France and made it sound like they encourage you to have children in France, you practically get paid for having kids, not sure of the details and how accurate it is but thats what she told us.

    So one last question will it be the same per year roughly to buy the 2 years for my wife, I think it was around £700 per year mentioned earlier in this thread?........................................... ........................................... Actually will she even have to buy 2 more years as she will still be getting child benefit for a while longer what with our youngest being only 11 so i assume that will complete her record to get the maximum of £155???
    Last edited by happyhero; 29-03-2017 at 12:39 AM.
    • xylophone
    • By xylophone 29th Mar 17, 12:57 AM
    • 23,442 Posts
    • 13,627 Thanks
    xylophone
    https://www.gov.uk/child-benefit/what-youll-get


    Child Benefit and your State Pension
    If your child is under 12 and you’re not working or don’t earn enough to pay National Insurance contributions, Child Benefit can help you qualify for National Insurance credits.
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