Paying N/I after early retirement?

tanith

Hi I have been speaking to the Pension Forecast people today as my forecast got lost in the post (they put the wrong address DUH!!) the guy I spoke to was most helpful and we discovered that I have no allowance for Home Resposibilities Protection which he says I should be entitled to for the years 81-86 he is sending me out a form to fill in so they can recalculate for this... he also told me about qualifying years etc and seemed to suggest that to bump up my State Pension as I have missing years I could carry on paying N/I till my 60th birthday an extra 2 1/2 years.....

Is this correct? and how would they work out how much I would have to pay if I was not working , and only receiving an Occupational Pension?

If this is correct depending on how much I would have to contribute (I might struggle to pay) would it make sense to use some of my lump sum from the O/P to pay this ?

thanks for any insights to this query

tanith

tanith

Is there noone who can answer my questions?? I spose I should just do what I did BMSE (before MSE) phone them myself..... :rotfl:

tanith :rolleyes:

CIS

I used to be an advisor with pension forecasting ..;

You would have HRP on your record presumably through having children ?, this can give you up to 15 years per child , so why only 81-86 ? , are the rest showing on your record ?

A couple of questions,

Whether its wothwhile depends on your record, how exactly does it stand at the moment ?.

During the period 81 - 86 , where you working or only looking afer your children ?

Rogerb_2

We topped up my wife's pension by the missing 6 years as she would be drawing a state pension in her own right for ten years before being entitled to anything as part of my married man's pension. As well as giving her some financial independence it was also beneficial in later years as taxed as her own income. The six years cost in our case was recovered in under 2 years as she got a much better pension but the HRP credit helps this breakeven calculation as without it I recall the breakeven was a lot higher.
The stamp is just over £7 per week ( called voluntary I recall ) In some circumstances you can pay lump sums for up to 6 years back.

If into technical stuff - My wife's case was Worked 17, HRP 16, Missing 6 ie total 39 for full pension as I recall. They took the 16 HRP off the max total reqd of 39 reducing it to 23 for a maximum pension. Paying 6 voluntary added to the 17 worked was far more an advantage as a percentage increase than 6 on say 33 if they had added worked and HRP together instead.

Good Luck.

tanith

As regards the question regarding HRP , the guy in the pensions forecast office asked me my childrens years of birth ( 69. 73. 79.) my age is 57, and then said I would qualify from 81 to 86 , no idea why he quoted this.....
I was at home continually from 69 to 87 not working ..... and I am sure that he said I had NO HRP on my record at all......

I believe he said at present I only have 25 qualifying years showing... and need 39 but this would be reduced once the recalculation was done taking the HRP into account

He is sending me a form to record my childrens birth years and will then recalculate.....

He also mentioned SERPS and something else that would boost my final pension by a few pounds each , but I am afraid by this time I had lost all track of what he was talking about......

Hope this all makes sense to somebody....thanks anyway

Rogerb_2

Tanith - just updated my earlier response above so perhaps worth another read. I would have thought based on our case you would have HRP from 1978 when it came in I recall until you went back to work as long as you claimed child allowance.

CIS

You should be entitled to HRP from 1978 to 5/4/94 or 95 depending on your childs d.o.b.

For any year in which you get HRP which is also a qualifying year, is counted as a qualifying year, HRP is not used as the qualifying year is better on your record.

If would guess that you have enough conts on record to give you qualifying years between 78 and 81, thats why he mentioned HRP from from 81 - 86.

Where you working between 78 and 81, and again between 86 and 94/95

The form he is sending you is a CF411, you can print a copy off the internet yourself if you dont want to wait for it to arrive.
http://www.hmrc.gov.uk/forms/cf411.pdf

CIS

You would possibly have some State Second Pension and some SERPS (collectively known as Additional Pension) depending on your NI record and possibly some graduated pension.

tanith

Hi again... this seems so complicated , even though I am sure its not...

CIS I was NOT working between 1978 and 1981 . I started working in 1987 or 88 (have to check the year) continuously to today............

so will this mean I will qualify for a 'full' State Pension ...?

You are right about the SERPS he mentioned that and the Graduated Pension he said I qualified for both (only small amounts I believe).


I will print off the form and get it in the post... how do I check that their figures are correct.? does the pension forecast explain how they arrive at the figure ?

Thanks so much

tanith

CIS

In that case you should have HRP for 1978 to 1981 as well as the later period, I dont know why they didn't mention that.

The forecast will explain the figures , but if you have any problems you can post here or PM me and I'll be happy to help explain it.

Rogerb_2

I was going to say the same as CIS post above about getting 78 to 80 as well for HRP. If you have been told you have 25 qualifying years which I understand can't include HRP ( from CIS post ) plus they give you 8 HRP for 78 to 86 inclusive and you pay £7ish a week voluntarily for a couple of years then the calc would be as I recall

39 years less say 8 HRP = 31 needed for max pension

To date = 25 qualifying plus 2 voluntary ie 27

Calculation = 27 / 31 or 87 % of pension currently about £82 = £70 approx plus any secondary pension which I don't understand. As part years don't count I used 8 HRP ( could be 9 ) and 2 voluntary ( could make it 3 extra ) in case so as not to raise expectation.

Hope I haven't misled you at all when you get resolution as I have not got any more knowledge than from our own experience to offer. Good Luck