Pension Boosting article discussion

Former_MSE_Wendy

This is the discussion area for the NEW Pension Boosting article

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kokma_nick

From 6th April 2009 certain people are able to buy an additional 6 years of NI contributions dating back to 1975.

If I am already in receipt of state pension at less than 100%, and buy sufficient years to increase my pension to 100%, will the increased pension be paid (a) from the date the additional NI contributions are made, or (b) from commencement of payment of state pension?

kokma_nick

Further to my post as above, does anyone know whether it is possible to ask my question of the REvenue and Customs BY E-MAIL

Only telephone numbers are shown on their website, i am overseas and do not wish to incur unnecessary expense holding on listening to music

cjdean

Hi there, can anyone help me. I am only earning less than the minimum amount to pay any tax or NI. I do not want to lose my eligibility to claim SP when I retire, so what do I do?

Should I expect forms to come dropping through the door to sort it out,

or

Should I be doing something already that I don't know about

Thanks!

Magcar

I have paid National Insurance contributions for approximately nine years, five of those with the married women's stamp. I received Child Benefit for approximately twenty-five years. I was led to believe I should pay six years shortfall to make up my pension but then read that married women needn't do this. What should I do please?

kento_2

Deferring state pension isn't a simple calculation.

You may have tax issues, it may be beneficial to avoid paying tax on state pension income now because other income is making it taxable.

On the other hand the extra state pension later in life may not produce an real extra income if you became entitled to minimum pension in any event.

What about the impact of drawing down savings capital rather than taking pension?

Finally, governments are prone to altering pension regulations, witness the forthcoming reduction to 30 qualifying years, so its hard to predict what might happen. For instance you might speculate that if the recession bites harder the working generation struggling to pay off government debt through higher taxation would look favourably on a political party looking to be even more frugal with pension spending.

RichOxon

cjdean wrote: »

Hi there, can anyone help me. I am only earning less than the minimum amount to pay any tax or NI. I do not want to lose my eligibility to claim SP when I retire, so what do I do?

Should I expect forms to come dropping through the door to sort it out,

or

Should I be doing something already that I don't know about

Thanks!

You need to get 30 qualifying years in order to get a full pension, and so as long as you expect to get those years before you retire then it doesn't make sense to pay now.

If you don't expect to get those years then it could make sense to pay before April, so that you pay the cheaper rate.

muckybricks

Further to kokma nick's post re buying missing years contributions, as I understand it, in November Gordon B made reference in his budget speech to allowing people with years missing between 1975 and 1981 to purchase up to 6 of these missing years. These people affected will mostly be women who are now approaching retirement and who stayed at home to bring up their children. A very useful piece of legislation if it is every enacted. Since then nothing seems to have happened.

I assume it will need to be put to a Parliamentary vote in order to be made law. If anyone knows what is happening I would be grateful for any information as I am due to retire in June with missing years.

Thank you

Mary B

RichOxon

I'm 28, have 9 qualifying years, and have the option of buying up to 3 more years, which will cost me a total of about £900 (one of them I already have partial credit for).

I'm planning on emigrating soon, so I may never reach the 30 qualifying years that I'd get from continuing to work in the UK.

I know I can claim my UK pension from the country I'm emigrating to.

Can I still accumulate qualifying pension years from keeping my UK business open? If I can, then it's a much cheaper way of picking up qualifying years than paying out that £900 now.

Does anyone know if that is possible? Can I live in another country, but still keep paying my Class 2 (Self-employed) National Insurance contributions, and in doing so accumulate those qualifying pension years?

Any advice appreciated! :-)

ChampagneJoJo

By the time I retire I will have 48 qualifying years, does this mean I will get more of a pension than if I only had 30 years, or can I stop paying contributions after the 30 years is up? (I'm self-employed)

west-sussex

I opted out of SERPS many years ago, left work to have children and then returned to work in SERPS again.

Does this effect my pension and how? Secondly how can I find how many qualifiying years I have?

Thanks