Calculating number of years of paying NI for state pension

p00hsticks

castle96 wrote: »

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

class 2 is the flat rate one that all self employed pay - it counts towards the state pension. If you've been paying these, I'm not sure what benefit (if any) there is in making additional payments (but I'm not an expert).

castle96

never paid class 2, only class 4 that was collected with the tax payment

p00hsticks

castle96 wrote: »

never paid class 2, only class 4 that was collected with the tax payment

I thought all self employed paid Class 2 ( unless they are low earners) ?

http://www.hmrc.gov.uk/working/intro/class2.htm

but as I said in my previous pst, I'm not an expert

peterth125

I have paid 44 years NI contributions of which 4 years were contracted out. Does this mean I still qualify for the full amount with no deductions for being contracted out as I have the necessary 35 years. Hope this makes sense
Thank you

xylophone

I have paid 44 years NI contributions of which 4 years were contracted out. Does this mean I still qualify for the full amount with no deductions for being contracted out as I have the necessary 35 years. Hope this makes sense
Thank you

Surely all this was discussed before? You are eligible to claim your state pension in December this year and you have received a forecast showing that you have qualified for the full basic state pension and for some additional pension? See post 18

https://forums.moneysavingexpert.com/discussion/comment/66170273#Comment_66170273

peterth125

If you have nothing constructive to say then please do not make sarky comments. Yes I have had a forecast but along side the forecast is the phrase " the amount could be lower especially if you were contracted out between 1978-1997 "
It might all make sense to you but very confusing to me. Rang DWP yesterday and spoke to some one with even less knowledge than myself. So please do not assume everyone knows as much as you do otherwise we would not be on here asking for help and advice

jamesd

With 44 years total and only 4 contracted out it is extremely unlikely that your foundation amount will be below the flat rate level. It's far more likely to be well above it. It's remotely possible that you were earning so little in part time work for so long that you might not get there but that's very unlikely.

To get a better idea of the worst likely case result, take the additional state pension part of your statement, multiply by 40 and divide by 44. Then add the basic state pension and any graduated retirement pension. That is a reasonable but not perfect estimate of what your foundation amount will be. It's more likely to be too low than too high. This makes the worst case assumption that you were contracted out during the time when the contracted deduction was maximum, as I see you were from another post.

If your foundation amount is above the flat rate level you'll get the higher foundation amount.

The calculation I gave is appropriate only for those with reasonably full work histories. Others may get a higher foundation amount under flat rate rules. This doesn't apply to you.

If you reach your state pension age before the flat rate system comes in, use the calculation I gave and it'll give a reasonably correct answer.

And I see that you didn't mention key information that you gave elsewhere:

peterth125 wrote: »

I am due to retire in Dec 2014 at age 65

So I wasted my time explaining the flat rate things that do not apply to you. Use the calculation I gave. It'll give you a decent answer. Not perfect but good enough for planning.

peterth125

Thank you so much for a clear explanation. I will give it a try. Thanks again.
Peter

xylophone

If you have nothing constructive to say then please do not make sarky comments. Yes I have had a forecast but along side the forecast is the phrase " the amount could be lower especially if you were contracted out between 1978-1997

"

I believe that anybody reading the thread to which I refer above would agree that I had been very constructive - what a pity that your comments are so ungracious and ungrateful!

And did you read post 18 in your previous thread which answered your question?

xylophone

And I see that you didn't mention key information that you gave elsewhere:

I mentioned this in my post 26 above.

You are eligible to claim your state pension in December this year and you have received a forecast showing that you have qualified for the full basic state pension and for some additional pension? See post 18

http://forums.moneysavingexpert.com/...=#post66170273