qualifying years for state pension.

gadgetmind

slpj wrote: »

Does this mean I will get £123.43 + my old serps of £33.79, making a total of £157.22?

No. You get the largest of the following two.

A) £144 x years/35 - "rebate derived amount"
What you're down to get under the current system.

The calculation of "rebate derived amount" is subject of much debate. Some claim they know roughly how it will be calculated but my (B) is more than £144 so I haven't looked too deeply.

slpj

Thanks gadgetmind.
So if I pay for the additional years, I would also get the full 144 instead of £141.24?

So how much does it cost to buy 5 years, and is it worth it for an extra 2.76 a week (£143 per year)?

gadgetmind

slpj wrote: »

So if I pay for the additional years, I would also get the full 144 instead of £141.24?

Yes but it's not that simple.

So how much does it cost to buy 5 years, and is it worth it for an extra 2.76 a week (£143 per year)?

I'll answer this in reverse order.

After 2017, an extra year will earn £144/35 per week, which is £4.11, so waiting until after then is best for most people. You just wait to see what your foundation amount is and then start trying to increase it.

I think you will only need one extra year after 2017 to get the full amount. Using class 3 voluntary contributions varies in cost from year to year but is about £650.

The other alternative is to register as self-employed and pass class 2 at about £130 pa but I don't know enough about your situation to know what issues it might cause. My wife just told HMRC she was self-employed, set up the direct debit for class 2, and fills in a self assessment every year showing her negligible earnings.

Linton

slpj wrote: »

Thanks gadgetmind.
So if I pay for the additional years, I would also get the full 144 instead of £141.24?

So how much does it cost to buy 5 years, and is it worth it for an extra 2.76 a week (£143 per year)?

Is the 30 years you have been told correct? If you look through this thread it seems that the latest forecasts are saying that everybody with 30 years or more has 30 years contributions as that is all that is currently required.

slpj

Thanks for those last 2 replies.

I already do self assesment because I have a small rental income. I'm thinking of full time employment next year anyway, and hope to work for at least the remaining years until I reach state pension age. But I think I'll be looking for paye rather than be self employed.

I suppose I'll have to ring the dwp then and ask if I have more than 30 years.

I hope it all becomes clearer in the next year or so.

bilbo51

Stompa wrote: »

Out of curiousity, were both of those quotes obtained using the e-service?

Yes. I also got a statement by phone which was mailed to me in May 2012 when the e-service was not working for me which also says 42 years.

Stompa

bilbo51 wrote: »

Yes. I also got a statement by phone which was mailed to me in May 2012 when the e-service was not working for me which also says 42 years.

Thanks. I'm puzzled now as all my forecasts (obtained via the e-service) from 2008 onwards show 30 years, which I'd attributed to a peculiarity in the way the e-service statements are written. You seem to be an exception to that theory, so I guess it's not a good theory.

bilbo51

Stompa wrote: »

You seem to be an exception to that theory, so I guess it's not a good theory.

Aha! The Scientific Method in action.

[Propose a theory and stick with it until something to disprove it comes along ]

Linton

Stompa wrote: »

Thanks. I'm puzzled now as all my forecasts (obtained via the e-service) from 2008 onwards show 30 years, which I'd attributed to a peculiarity in the way the e-service statements are written. You seem to be an exception to that theory, so I guess it's not a good theory.

The e-service statement seems to be different to the one you get by phone (or was in 2012). The phone one is more useful.

That's my theory anyway.

molerat

Sounds like a typical government thing then, 2 different answers to the same question