Shortfall in National Insurance Contributions

seven-day-weekend

If your retirement date is after 6th April 2010, you only need 30 years paid/credted NI contributions whatever your gender or marital status.

Second State pension used to be known as SERPS, now known as S2P, you get this earnings-related supplement on your State Pension if you have not opted out,for example into an Occupational Pension.

For example , my friend told me tonight that her State Pension is £125 a week; this is her £95 plus £30 second State Pension.

Mine will be £102 pw, but I have an opted out Local Government Pension of £45 pw also.

MFewings

I have read the thread and tried to understand but combined with the letter ive got im even more confused.

The letter i recieved from HMRC says i have a sortfall of £339 for year 06-07 and £405 for 07-08. It then goes on to say I have 31 years which count towards my basic state pension and I need 30 years to get a full pension.

It also says I might want to make up the gap to get breavement benefits as would need 39 years for this. I still have 11 years working life if I can find a job (which is looking more difficult), so what is this breavement benefit, and what would people recommend I do?

Is it worth making these payments now (funded by my husband of course) or should I see what happens over the next few years????

EdInvestor

MFewings wrote: »

The letter i recieved from HMRC says i have a sortfall of £339 for year 06-07 and £405 for 07-08. It then goes on to say I have 31 years which count towards my basic state pension and I need 30 years to get a full pension.

It also says I might want to make up the gap to get breavement benefits as would need 39 years for this. I still have 11 years working life if I can find a job

You have already qualified for the full state pension by paying 30 years so there's no need to make up shortfalls on that account.But NI also coveres bereavement benefit (details on DirectGov site) so they are pointing out that it you want to qualify for this as well, you do need to make up the shortfall and probably keep on doing so.

Botch

Its highly unlikely to be of any real benefit as you are fully paid for the basic state pension after 30 years NI payments (from April 2010) They do try every way to gain a little of our cash these days!

molerat

Oh has just got a pension forecast. She has 23 years in the bank, is 55 and not working. It gives a list of amounts to pay for each extra year but states that for more than 2 years back the amounts may be more. Anyone know if the amounts will be more than quoted for the 06 tax year and previous.

molerat

molerat wrote: »

Oh has just got a pension forecast. She has 23 years in the bank, is 55 and not working. It gives a list of amounts to pay for each extra year but states that for more than 2 years back the amounts may be more. Anyone know if the amounts will be more than quoted for the 06 tax year and previous.

Found the answer here http://www.pensionsadvisoryservice.org.uk/tkflow/Flow.aspx?f=TPASVoluntary%20NICs&template=TPAS_Template_new&xsl=dtree_new

Carmen

Hi,
My brother in law has been told how much state pension he will receive when he retires in April. He queried the amount and was told he had a shortfall in his NI contributions. This can have only happened during the last 15years(approx) when he was pensioned off from work with ill health.
He has claimed some kind of benefit during this period and had been told his NI would be paid whilst on benefits.
Could anyone please clarify this?
Thanks
Carmen x

seven-day-weekend

How many years is his shortfall for? Which years are they? What Benefit was he claiming?

Carmen

I will try to find out the details you ask.
Thanks

Carmen

Carmen wrote: »

I will try to find out the details you ask.
Thanks

He was claiming IB, the shortfall could only have been during the last 15 years, during his time on IB (will try and find out exactly, if possible?)
I think carers allowance (for my sis)comes into this somewhere, maybe that makes a difference, although he was told it was because of a shortfall in NI.
Carmen x