Shortfall in National Insurance Contributions

EdInvestor

beany wrote: »

I phoned Pensions service a few days ago and they man I spoke to said don't both to pay voluntary NI contributions, so why, in their letter, are they suggesting I should.

This is a 'form" letter they are required to send out to alert anyone who will miss a year of NI contributions unless they top up.So you can ignore this as the man said as you should be credited with enough conts to make up the full amount via the caring.

beany

thank you EdInvestor

samtastic7

dorry wrote: »

hi :wave:

don't know if this is the right place to ask this question?? I am 44

I have just spoken to pensions forecast people and they have confirmed I have 26 years from up to years 05/06, so will have near enough 27 years by now, which is correct.:j

so in 3 years time, when i have 30, so I stop payin ni or is this for something else as well??

thanks in advance

i have similar question i am 42 and always paid i am currently paying vountery contributions as i dont earn enough to pay it on my wages do stop paying whn i have 30 years worth?

Meanbean_2

Hello,

Apologies if I'm repeating questions here, but I wasn't sure if things had changed since it was last asked. In 2004 I got a letter saying that my NI contributions weren't enough to contribute to my state pension, and that I could pay about £97 towards it or wait and see if I didn't need to (that wasn't the exact wording, but you get the idea).

So, being generally clueless on these matters, I waited, and wondered if it was advisable to pay now - I'm 26.

Many thanks!

EdInvestor

Since then the total number of NI conts needed for the state pension has reduced from 44/39 (M/F) to 30, so it's unlikely at 26 you would need to make up that year.

Meanbean_2

Brilliant, thank you!! :kisses3:

cobblersdespair

my wife finished work 2years ago having paid ni contributions for some 20 years, now the job centre says she is not eligible for any benifit because she has'nt paid stamp for 2 years. so can i buy the last 2 years of stamps to bring her back upto date?

seven-day-weekend

I don't think Voluntary Contributions count towards anything other than State Pension, so I think the answer is no.

seven-day-weekend

beany, ref post #109, I think you can only get a TOTAL of 19 years HRP under the old rules and 12 under the new.

adrian_bond

hi everyone,

this is my first post so please be gentle!

im 27, about to start a private pension (thanks for all the data by the way. makes great reasearch!) as my company doesnt offer any contribution and i need to get something sorted now. i rang the forecasters department at HM revenue etc and they informed me that i have 7 qualifying years already paid (forecast to retire on 5th august 2049!). this entilies me to retire at about 68 (despite the woman at HM saying 60) with a basic state pension plus any 2nd state pension benefits as expected. however, i then previously recieved a letter form the forecasters department saying that there is a shortfall of four years where i didnt make sufficient contributions to ensure a full entitlement. these were the four years i was at university from 2002 - 2006.

2002/2003 = £97.20
2003/2004 = £332.10
2004/2005 = £299.70
2005/2006 = £267.30

total defecit = £996.30!

Having spoken to the woman at HM rev, she informed me that it isnt worth paying the £1000 or so shortfall as it will make no difference to my pension as i already have 23 years and have no serious plans to emigrate or die early etc! therefore, this article makes very interesting reading. Am i being lied to by HM, have they made a mistake, why dont the government want my money, and what should i do?

i have plenty of cash in savings so i can cover the bill easily enough, but dont want to throw it to them for nothing in return. i also dont want to waste it where i could have it working extremely hard for me for the next 47 years!

the letter states i can make up the payment as volutary class 3 contrbutions. will this count towards my pot and can i expect a larger pension to retire on (provided the state pension exists when i retire!) if i pay the money?

if it is money to the government for nothing in return then they can squat on it, but if i can expect a few more quid to buy soup and incontenance nappies when i retire then excellent!

any advice / opinions etc will be greatly appreciated. cheers.