Should I pay shortfall for state pension ?

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motherofstudents
motherofstudents Posts: 1,358 Forumite
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in Pensions, annuities & retirement planning
I recently rewuested a pension forecast and also checked online. My record shows 34 full years and for 2012/13 I have 38 credits. My cope figure is £6.68 pw.
I have spoken to someone in the future pensions at DWP who said I could pay £185.50 to complete the year 2012/13, giving me 35 years. This would give me an extra £4.45 pw. That is increasing from £144.36 to £148.81.
That all seems fairly straightforward, but I think he said it wouldn't be worth paying any more as I was contracted out. This was all done over the phone so all I have in writing in the pension statement. Does this sound right ? Sorry, I do find pensions quite confusing !

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  • Silvertabby
    Silvertabby Posts: 9,023 Forumite
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    How old are you and are you still working (earning enough to pay NI)?
  • motherofstudents
    motherofstudents Posts: 1,358 Forumite
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    No longer working, age 62 and retirement date Nov 2020. Not paying NI.
  • molerat
    molerat Posts: 31,865 Forumite
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    That year then should increase your pension.
    155.65/35x34-6.68=£144.55
    155.65/35x35-6.68=£148.97

    You also then have the opportunity of purchasing some post 2016 years to make up to the full £155.65.

    Do you look after grandchildren whilst the parent is at work, a nice little earner for NI credits ;)
  • motherofstudents
    motherofstudents Posts: 1,358 Forumite
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    Thank you Molerat. I was confused as I thought I had read on here that previous years didn't count.
    I wasn't aware you could get NI credits for looking after grandchildren. Unfortunately my kids are being a bit slow in that department so that's not an option at the moment !
  • molerat
    molerat Posts: 31,865 Forumite
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    edited 18 March 2017 at 6:43PM
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    Often the COPE amount wipes out the benefit of buying missing pre 2016 years and the starting amount would be based on the old 30 year pension as it is higher, in your case it is a very small amount indicating a short period of contracting out - mine is £74. I assume much of your history is built up of home protection credits and / or low paid work so not building up a large S2P amount.
  • motherofstudents
    motherofstudents Posts: 1,358 Forumite
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    Yes that's right. I had a few years at DWP but took the pension money as it was under five years, and later local government was contracted out. Thanks for help.
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