Shortfall in National Insurance Contributions

Triplered

Wondering about this myself - so only just looked at the "white paper" and it looks like there will still be a means tested Pension Credit but seems to be also referred to as "Guarantee Credit" as well as Housing and Council Tax benefit. So sounds like some one with no National Insurance Contributions would be given some sort of "livable" pension which will probably be less than the average pension others get who have paid full National Insurance Contributions. The figure she would get will be revealed in time but is called "basic level of means-tested support".

Your wife would have to have less than the savings limits (£10,000 or whatever it will be then).

The actual paragraph relevant being "The single-tier pension will be set at a rate that is above the basic level of means-tested support. As a result there will no longer be a need for a complex savings reward under single tier. Removing Savings Credit will simplify means-tested support and help to ensure Pension Credit is re-focused on providing a safety net targeted at the poorest and most vulnerable." - your wife would be falling into the poorest and vulnerable bracket if you had died and she had few savings and no National Insurance contributions and therefore no income.

Jack_Griffin

I got a pension statement out of HMRC late last year which recorded 30years NI contributions, At the time I thought great all sorted, but now they've moved the goal posts again.

So yesterday I sent off for an NI record as I swear I should have a few more years than that! At least I shall be able to see where the gaps are and challenge anything wrong I still have the documention for.

Moral of the story is keep your P60's & P45's for ever as HMRC record keeping may be suspect! Fortunately I have mine back to 1978, but there is a year+ before that I worked that I hope is on their records (though I definitely had 3 years since 1978 out of the country or in full time education) or I could have trouble with evidence if I need it.

Iceweasel

OK - we received our pension forecast info from DWP today.

As expected I've got 38 years contributions + some additional 2nd pension - so I'm confident that my pension is a big as I can make it.

My wife has been informed that she has 3 years contributions - which comes as a surprise. She cannot recall ever having worked a full year. Probably these 3 are because of her being in full time education in her teens.

Am I right in saying that the years quoted are full years only and a year which is short is not counted at all?

My wife may have several years incomplete - but the estimate doesn't tell us which years or how many weeks or months short.

Is there some way we can find this out and if it's worthwhile paying voluntary contributions to complete them?

We are reluctant to spend any of our small savings if the result will not make much of a difference in the future.

We cannot find out for sure if on my death my wife can benefit from my contributions - or does she 'stand alone'?

These new proposals have thrown all our plans for the future up in the air and we are now sure of nothing - shame on you, Mr Cameron.

dampsquib

Iceweasel wrote: »

Am I right in saying that the years quoted are full years only and a year which is short is not counted at all?
Is there some way we can find this out and if it's worthwhile paying voluntary contributions to complete them?

Do part year's count towards a State Pension? This is something I've been wondering about too.
In addition to getting a State Pension Forecast, I discovered that you could also apply to HMRC for a statement of your National Insurance Account - see here http://www.hmrc.gov.uk/ni/intro/check-record.htm
You can apply online, but in my case that just resulted in an email saying that they couldn't trace my records, and I was asked to repeat my info in a letter. Couldn't really see how repeating the same info would help, so I've sent them a very detailed account of my working life. When I get my statement, hopefully it will confirm that none of my contributions have been lost. It will also be interesting to see if various summer jobs, temporary jobs, and spells on the dole count for anything.
Next problem, will be to determine if addressing any shortfall would be worthwhile.

Jack_Griffin

dampsquib wrote: »

You can apply online, but in my case that just resiulted in an email saying that they couldn't trace my records, and I was asked to repeat my info in a letter.

LOL, exactly the same as happened to me. It took them 2 weeks for them to reply to the website enquiry.. typical government inefficiency.

Sent it all in a letter the day I got the first fail reply.. I will see if that works..

t0rt0ise

I just got mine in the post. I was pleasantly surprised to see that I've got 40 qualifying years. I thought I'd have fewer. But one year I paid some NI and got credited with 69 weekly credits. That just can't be right.. to have more credits than there are weeks in the year. So I just hope that the rest of it is correct.

jamesd

You may have ended up buying enough weeks so that one year that previously didn't have enough weeks to count now does count in full instead of not at all.

mrs_formby

Have read with interest many of these posts & there are some similarities running through them. My dilemma now is caused by the differing responses received from HMRC - NI voluntary contributions section to make up the shortfall. Yesterday told as I have 31 years I could, before 6/4/13, pay the previous 2 years unpaid contributions at reduced rates i.e. £626.60 for 2010/11 & £655.20 for 2011/12 then £689 for all other 2 years that I was short. Seemed clear & would enable me to increase my record to show 35 years paid & so be eligible for full State Pension in 2020. If I delayed beyond 5/4/13 then the rates would rise.

However, today, am told by HMRC in Newcastle, that an internal memo states people are going to be allowed to pay back for missing years stretching to 2006/7 at today's rates. This ability to "enjoy" today's rates will continue until 2019.

This conflicts with yesterday's response & made me realise that I was assuming the Pensions Bill would be passed. I was also told today if I paid in these missing years & the Bill wasn't passed there's no guarantee of me getting a refund.

I understand that by paying an average of £665 per lost year that I should, at the proposed £144 Basic State Pension, receive £4 more each week. This would mean with no inflation proofing I would only have to live 3 years & 3 months to break even. Yes, it's a wee gamble but really a no brainer given mortality rates & family longevity etc.

My dilemma is should I pay it now or wait & see if there is this ability to pay at today's rates providing of course the legislation goes through? How to discover when I should pay? Surely the politicians realise there are millions of people who have between 30 & 34 years contributions & therefore have not received an annual demand/gentle request to top up because they were over the minimum. Will they give them some grace or even allow them 7 years to catch up?

Can anyone help me with my dilemma as time is running out for me & many others too?

Jack_Griffin

Jack_Griffin wrote: »

LOL, exactly the same as happened to me. It took them 2 weeks for them to reply to the website enquiry.. typical government inefficiency.

Sent it all in a letter the day I got the first fail reply.. I will see if that works..

Got my reply finally, I have 33 years to 20010-11 and I worked the following 2 years, so I've got 35 in all and also 72 weeks credits (however that works).

The date on their letter is 18th Feb, but I got it about 28th Feb.

smallblueplanet

mrs_formby wrote: »

...

My dilemma is should I pay it now or wait & see if there is this ability to pay at today's rates providing of course the legislation goes through? How to discover when I should pay? Surely the politicians realise there are millions of people who have between 30 & 34 years contributions & therefore have not received an annual demand/gentle request to top up because they were over the minimum. Will they give them some grace or even allow them 7 years to catch up?

Can anyone help me with my dilemma as time is running out for me & many others too?

Anyone have an opinion?