Inland Revenue Letter For Student

CIS

The problem with that assumption is that most likely, if the pension isn't phased in for people only after a certain dob (as in womens increase to 65), it would most likely be pro-rated.

If your short now then , especially as the changes probably wont be introduced for 15-20yrs, youv'e gone 1/2 your working life without a full record, and by then it would be too late undo any losses.

QBD

Hi, Im currently a undergraduate and have also got the letter asking me whether I want to make voluntary contributions. Im 23 and still have 1 year to go till I finish. As it stands I have no qualifying years at all, but due to part time work and taking a gap year the amounts I have to pay are smallish.

2003/2004 - 41.70 needed
2002/2003 - 88.20 needed
2001/2002 - 351.00 needed

I have to decide by April whether to pay the smaller amounts. Can anyone suggest whether it is worth my while doing this, I still have 43 years till pension day comes. I suppose it might be worth paying off the smaller amounts because I only have 1 year left to finish till I work/sign on etc?

I suppose its all the more reason for students to be forced into working at least part time whilst studying, which is why student loans are so low and you dont get NICs. Cest La vie!

Lychee

I received the letter as well. I need to pay £215 to make up for 2003/04. I'm 22 (23 later this year) and have 2010 to make this voluntary contribution. The one thing I'm really wondering about is what happens if I leave the country, say, in 10 years time. I've paid all the NI contributions prior to leaving the UK and live abroad for the rest of my life... will I still be entitled to even a small percentage of the state pension?

melancholly

I've started paying for the amounts I need to make up - you do have a long time to pay them, but you only have a few years when you can pay them at the rate you'll have been quoted. After that you can pay them, but they will be at the rate for the year in which you pay them, so will go up.
QBD - I'd pay the small ones, it's not a huge amount of money and it gives you 2 full years worth of contributions. Then when you do get a job you can think about the big total. I'm doing a phd and won't be able to afford 3 full years of contributions, but I'm making sure all the part paid ones from when I was an undergrad and gap-yearing are paid up first.

QBD

melancholly wrote:

I've started paying for the amounts I need to make up - you do have a long time to pay them, but you only have a few years when you can pay them at the rate you'll have been quoted. After that you can pay them, but they will be at the rate for the year in which you pay them, so will go up.
QBD - I'd pay the small ones, it's not a huge amount of money and it gives you 2 full years worth of contributions.

Thanks for the advice - thats what i'll do, better get started its something I keep thinking is so far away but I dont want to survive on cat food when im pensioned just because Ive not covered the basics!

Cheers

Savvy_Sue

Lychee wrote:

I received the letter as well. I need to pay £215 to make up for 2003/04. I'm 22 (23 later this year) and have 2010 to make this voluntary contribution. The one thing I'm really wondering about is what happens if I leave the country, say, in 10 years time. I've paid all the NI contributions prior to leaving the UK and live abroad for the rest of my life... will I still be entitled to even a small percentage of the state pension?

AFAIK, it depends a) on your nationality and b) on where you are living in retirement. Don't quote me on this, because I'm not sure, but if you are not an EU national then I don't think your NI contributions count towards anything, but you still have to pay them. And I don't think you can claim your state pension everywhere. I believe it used to be payable within the commonwealth, but again I'm not entirely sure about this, and whether it was only some commonwealth countries etc etc etc.

Does the HMRC website not say anything useful?