Calculating number of years of paying NI for state pension

castle96

I have been employed for the last 6 yrs, previously s/employed for 20.
I cannot recoup any of those 20 yrs ? and now pay NI conts ? or can I ? "you can only 'go back' 6 yrs"

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

See page 5 - "What if I have been self employed".

wotsthat

jamesd wrote: »

When the flat rate system comes in each person will have a foundation amount calculated. That will be the higher of the current rules or flat rate rules amount. After that there will be no more earnings-related increases, just an increase of about 4.60 a week in state pension for each year worked. That increase will continue until the flat rate state pension reaches £144 under the original announcement or more like £155 once inflation-linked increases are allowed for.

Does that mean everyone gets a letter in 2016 to tell them where they stand at that point or does the foundation calculation have to be requested?

If I'm reading this correctly someone who has always been contracted out with a foundation amount on the current rules (£113) will get to the flat rate (£155) after 9 years (155 - 113/ 4.6)?

I still can't believe there's not a catch.

jamesd

The original plan was to send a letter to everyone but I think that plan has been cancelled and that people will now have to request it.

Yes, I think you're right about the time to get the full flat rate if always contracted out. No catch that I'm aware of since if the years can't be worked they can be purchased and the person keeps whatever they got from contacting out.

gadgetmind

wotsthat wrote: »

I still can't believe there's not a catch.

You can't believe it? I can't believe that my wife will now get the full amount despite not paying anything other than class 2 for the last 20+ years!

castle96

I have been employed for the last 6 yrs, previously s/employed for 20.
I cannot recoup any of those 20 yrs ? and now pay NI conts ? or can I ? "you can only 'go back' 6 yrs"

thanks for the reply. Have read that but am still unsure.

If I can only "go back" 6 years, then these are the years that I was employed and paying NI. Is it true that I cannot go beyond these 6 years and pay 6yrs S/E NI for 6 yrs of my 20 yrs s/employment ?

p00hsticks

castle96 wrote: »

If I can only "go back" 6 years, then these are the years that I was employed and paying NI. Is it true that I cannot go beyond these 6 years and pay 6yrs S/E NI for 6 yrs of my 20 yrs s/employment ?

Are you saying that you haven't paid any NI in the twenty years you have been self employed ? Were you registered as self employed with HMRC ? You should have been paying class 2 & possibly Class 4 NI

If not sure, get a copy of your NI record via the link xylophone posted in post #2

It's too late now to back pay for those years

castle96

i paid the one i had to, - class 4 ? but not the other - class 2? (or the other way round). oh well, too late now

dunstonh

Pension Bill 2010 put state pension payout at 66 for women, so losing 6 years payout in comparison to 1 year to men's rise from 65 to 66 to get state pension.

Wrong. Where do you get your information from?

jamesd

Lostpension60 wrote: »

Pension Bill 2010 put state pension payout at 66 for women, so losing 6 years payout in comparison to 1 year to men's rise from 65 to 66 to get state pension.

See the Pensions Act 2007 introduced by the last Labour administration which did most of that, notably “(4)A woman born after 5th April 1955 but before 6th April 1959 attains pensionable age when she attains the age of 65” which removed the state pension age difference between men and women. For men or women born later it increased the state pension age to 66, 67 or 68 depending on just when they were born.

What the Pensions Act 2011, which the 22010 bill became, really did was make these transitions happen more quickly than the 2007 schedule, so age 66 for both is to be reached by 2020 instead of 2026 in the earlier act. For some women that caused them to be affected by the lower discrimination in state pension age vs men because they avoided it in the original version.

While the last women who can retire at 60 have already done so, until 2028 men are still discriminated against with a later state pension age than women. Even after both sets of changes men remain discriminated against by receiving the state pension for less time and usually paying in more to get the lower benefit. To equalise that would take a further delay of about two years for women compared to men or substantial changes to reduce the life expectancy difference between the two.

dunstonh wrote: »

Wrong. Where do you get your information from?

Looks like the petition at the URL given, which is entitled "Women's Pension 60. Against Tax Allowance Loss 65 / Pension Loss Widows, Housewives, Poor Workers". A grab bag of lets get people to pay lots of extra tax desires.