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  • FIRST POST
    • ossie48
    • By ossie48 18th Oct 17, 11:28 AM
    • 97Posts
    • 46Thanks
    ossie48
    State pension forecast
    • #1
    • 18th Oct 17, 11:28 AM
    State pension forecast 18th Oct 17 at 11:28 AM
    Forecast £159.55 a week 32 years of full contributions, 16 years to contribute, 3 years when you did not contribute enough.

    Estimate based on NI record up to April 2016 £145.88 a week

    You can make up the shortfall
    Pay a voluntary contribution of £733.20 by 5 April 2023. This shortfall may increase after 5 April 2019.

    As I'm early retired and made no contributions for the last few years is the 'voluntary contribution' above an accrual or would I have to pay all the voluntary contributions that are listed year by year. In other words 2014/15 was £722, previous year £54. Tried ringing the help line but cant get a reply.

    Cheers
Page 4
    • p00hsticks
    • By p00hsticks 11th Feb 18, 11:07 AM
    • 5,964 Posts
    • 6,063 Thanks
    p00hsticks
    Hi all, I am 55 this month and plan to retire in 2 years time. I have work and have always worked full time.

    My Gov state pension forecast says I will currently get £129.83 on my current contribution but get £159.55 if I work until 2029 which I don't want to do.

    I have 39 years of full national insurance contributions and will have a final salary defined benefits pension when I retire in 2 years time.

    I also have a COPE of £62.99 per week.

    So my question is will I get my full state pension if I only work for 2 more years and if not can I purchase more years and when is it best to do this.

    Many thanks for any help in advance
    Originally posted by LULULU1
    No, you won't get a full state pension. The two further years will add 2/35ths of the full amount (just under £10) to your starting amount.

    If you get another pension forecast when you retire you can see how many years you are short and then pay voluntary class 3 contributions for as many years up to State Retirement Age as you need to take you up to the maximum

    This guide explains it all
    https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf
    • Dazed and confused
    • By Dazed and confused 11th Feb 18, 11:47 AM
    • 2,216 Posts
    • 1,015 Thanks
    Dazed and confused
    But think carefully before buying the final year as that isn't necessarily as cost effective.

    While you are well short of the full £159.55 each year you buy will add £4.55 to your weekly State Pension payment and that is seen as a good use of the £741 it costs to buy the year. Depending on your tax position you normally get the £741 back in extra pension in about 4 years.

    But if you buy extra year(s) National Insurance and get to say £158.95, buying another year to get the full £159.55 wont be quite as attractive as you would still have to pay £741 but will really only get 60p/week in return.

    So instead of taking around 4 years to recoup your original £741 it will be more like 30 years before you see the full £741 back in increased pension.
    Last edited by Dazed and confused; 11-02-2018 at 11:50 AM.
    • molerat
    • By molerat 11th Feb 18, 1:44 PM
    • 17,942 Posts
    • 12,208 Thanks
    molerat
    I intend to do some part time work after I retire from fulltime work in 2020.
    Originally posted by LULULU1
    Just make sure you earn more than £113 per week (the "LEL", increased by inflation each year https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions) and you will get NI credits
    www.helpforheroes.org.uk/donations.html
    • LULULU1
    • By LULULU1 11th Feb 18, 7:08 PM
    • 349 Posts
    • 28 Thanks
    LULULU1
    So are you saying as long as I earn £113 per week my national insurance contributions will be all covered to give me full pension.

    Thanks
    • molerat
    • By molerat 11th Feb 18, 7:11 PM
    • 17,942 Posts
    • 12,208 Thanks
    molerat
    Pretty much. As long as you earn 52 times the LEL in a year you will be credited with a whole year. If you don't make that then each week you earn in excess of the LEL you will be credited with one week. The £113 is for 2017-18, the LEL increases each year with inflation.
    www.helpforheroes.org.uk/donations.html
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