Pension Boosting article discussion

Barter

JamesU wrote: »

You haven't made it easy to understand how many years you have or need. Obviously a pension state forecast is needed to confirm how many eligible years you have to date, if not done already...

Hope this helps.

JamesU

I'm already retired, and, as of my 60th birthday, getting just over 80% of the full state pension. This is based on about 20+ years of NI contributions, 3 years HRP, and 10 years bought-back voluntary contributions. I know I could never get 100% pension, having spent a number of years in higher education, then paying married woman's stamp for 7-8 years.

But, as I mentioned in #149 above, I wasn't previously allowed to buy back 1995/96, and I now wonder if this new opportunity will make that possible. If so, the payment of £626.60, if made before 6th April 2011 (thus backdated), would seem worthwhile as I'd be in profit after 2yrs 6 mths.

I've made a number of phone calls today, passed from pillar(NI dept) to post(DWP) but I've been unable to ascertain whether I can now buy back that year. The Pensions Service is going to write to me about it, but who knows whether that'll be in time to beat the deadline.

I'm almost tempted to send them the money now, assuming it'll be refunded if I'm not eligible!

JamesU

Barter wrote: »

I'm already retired, and, as of my 60th birthday, getting just over 80% of the full state pension. This is based on about 20+ years of NI contributions, 3 years HRP, and 10 years bought-back voluntary contributions. I know I could never get 100% pension, having spent a number of years in higher education, then paying married woman's stamp for 7-8 years.

I've made a number of phone calls today, passed from pillar(NI dept) to post(DWP) but I've been unable to ascertain whether I can now buy back that year. The Pensions Service is going to write to me about it, but who knows whether that'll be in time to beat the deadline.

I'm almost tempted to send them the money now, assuming it'll be refunded if I'm not eligible!

I reached 60 on 26/10/2008
I'm already retired
about 20+ ????? years of NI contributions

In this link, half way down:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/NationalInsurance/Voluntarycontributionsandtoppingup/DG_190078

There is this link here:

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@shared/documents/digitalasset/dg_180385.pdf

Where it says:

2. New opportunity to pay additional voluntary contributions for past years
You may be able to pay up to an additional six years of voluntary contributions to cover years going back to 1975 if you:
• reached State Pension age between 6 April 2008 and 5 April 2010; and
• already have 20 qualifying years, including any full years of Home Responsibilities Protection (HRP); and
• have at least one qualifying year that consists of paid contributions, or contributions treated as paid.


If you are sure you have 20 yrs+ (most likely in order to get 80% pension?) then I guess be persistent on the phone (maybe also try 0845 604 2931 in second link). Importantly, maybe you can buy more than one year (up to six) from 1975 onwards depending on the gaps and what you want to do.

JamesU

Barter

Many thanks for your replies, JamesU; I'll keep going and see what happens... it seems clear to me that I should, now, be able to pay for this missing year, but those people manning the phonelines - the gatekeepers, don't seem to have heard of this new opportunity - how many people who rely on their "expertise" miss out due to this lack of information? It's quite worrying - that you need such persistence, & that genuine claimants could be fobbed off.

rockypaul

SnowMan wrote: »

There isn't enough information there to answer.

It depends in part on whether your wife's state pension is based on your contributions (i.e 60% of your basic state pension) or whether she has earned it based on her own contributions. If it is based on her own contributions then boosting may be worthwhile.

When did your wife reach SPA? When did you reach SPA (or when will you reach SPA). How much basic state pension (excluding SERPS, S2P and graduated pension) are you receiving? If you haven't reached SPA will you qualify for a full basic state pension yourself?

Its based on her contributions of 8 years, she reached SPA 3 years ago, I have not reached SPA & will not for a few years, but will qualify for a ful SPA.

SO IS IT WORTH DOING A BOOSTER...?

leitmotif

leitmotif wrote: »

I have a question not really addressed in Martin's article on boosting state pension. I have 11 qualifying years. HMRC wrote to me and told me I have two years (2004-2005 and 2005-2006) for which I haven't paid enough (I was living and working in the Netherlands during these years). I'm 34. Is it worth me buying them? I mean, I have another 30 odd years of paying NI, and presumably once I hit the target number of qualifying years the government won't allow me to stop paying NI, so wouldn't I just be throwing the money away by buying these two years when it's more than likely that I'll have hit the target number of qualifying years a good 12 years before retirement anyway?

I've just read in a news article that the government intend on reforming the pension system such that the more years NI you pay the higher your pension will be. Is this correct? If so, buying a couple of extra years missed due to being abroad will be worth it.

dunstonh

I've just read in a news article that the government intend on reforming the pension system such that the more years NI you pay the higher your pension will be. Is this correct?

That is how the current state pension is built up. The proposals are a whole load of changes and buying extra years is probably not worth it at this time (unless you have less than 30 years and retiring in the next year or two).

leitmotif

dunstonh wrote: »

That is how the current state pension is built up. The proposals are a whole load of changes and buying extra years is probably not worth it at this time (unless you have less than 30 years and retiring in the next year or two).

Hmm. So a wait-and-see approach is called for? If I buy the extra 2 years I have until 2012 to do so. I'm 34, have 11 years NI paid, so nowhere near retirement yet!

dunstonh

leitmotif wrote: »

Hmm. So a wait-and-see approach is called for? If I buy the extra 2 years I have until 2012 to do so. I'm 34, have 11 years NI paid, so nowhere near retirement yet!

You are 34 years old and have 11 years paid. Your state pension age is 67. You only need to work another 19 years and you hit the maximum. So, paying any extra would be pointless. It may be worth looking at again when you are in your late 50s in case rules have changed between now and then.

Elines

My wife phoned the pensions boosting number over a week ago and has not yet had a reply - is there an alternative phone number that has a real person on it that we can use instead? Time is running out ........

harz99

Elines wrote: »

My wife phoned the pensions boosting number over a week ago and has not yet had a reply - is there an alternative phone number that has a real person on it that we can use instead? Time is running out ........

Mine's the same!

Anyone?