Can I start putting money into my state pension now?

Catbells

Hi. I'm 57 and don't have a pension. I'm hoping my house equity when I sell it will provide a greater proportion of my OAP, but realise this won't be enough if I buy an annuity for £150,000.

I have a small amount - £250 - in a teachers pension from years ago.

a) Can I add to this over the next ten years in order to increase the pension from that or

b) can I add to the Government pension in a similar way ie over the next 10 years at a rate of £10,000 a year? Will this yield more than an annuity?

Many thanks for any enlightenment or suggestions.

Andy_L

a - No, you have to be an active member of the scheme - AIUI from a previous thread if you start teaching again than you can buy extra pension.

b - Possibly: if you havn't paid enough years of NI to qualify for a full state pension (unlikely considering your age though) then you can pay for the missing years. IIRC this is a bargin compared to private provision but can only get you a full state pension, no higher.

Your other options are to invest that £10k/year in a private pension/ISAs/property/gold etc

molerat

If you get a state pension forecast it will show you what you have accrued so far, if any years in the last 6 are missing and how much it will cost to buy them through class 3 contributions. http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/StatePensionforecast/DG_10014008

McKneff

If you have already paid for 30 years NI contributions there is no point in buying any back. You only need 30 years for a full state pension.

Best thing for you i would think is ISAs

Andy_L

McKneff wrote: »

Best thing for you i would think is ISAs

Based on the information given why would you think that's the best option?

Catbells

Thanks to all.

My pension quote is £109 per week. Is this the maximum? I will look at the class 3 contributions which Molerat mentions - assuming this is what it refers to - and see if I can top it up

McKNeff/Andy L: I haven't worked uninterrupted for the last 30 years - bringing up children and family illness (as carer) kept me in a part time role teaching for most of my married working life. I am now divorced.

Are you referring to Government backed ISAs? for a safe investment for pension purposes McKneff?

molerat

If you have had a state pension forecast then it will clearly show how many years you have and which years you can buy. If you are missing contributions from more than 6 years ago you cannot buy them now. Class 3 contributions are not additional pension but can increase your basic pension up to the max of 30 years. Bringing up children and caring can give you credits towards the 30 years.