New State Pension starting amount and full record of qualifying years- trial service

JezR

Ros Altmann had a bee in her bonnet over needing to include a statement of COPE, at least that is what she said at the time. For a while there was no such statement at all, and if this was the general view within the Department it might quietly disappear again the next time the content is reviewed.

greenglide

Or simply state something like "our records show that during your working life you have been a member of one or more contracted out pension schemes. We estimate that this may be able to provide you with a pension of approximately £xx.xx from your pension provider".

Anything but the stupid COPE statement which tells you nothing.

Bootsox

I'd like to see a statement allowing a direct comparison, in £ note terms, between the value of the NIC reduction you "enjoyed" by being contracted out and the consequential reduction in nSP.

Yorkshire_Pud

SnowMan wrote: »

That's correct.

That's also correct.

You will have that choice to make. At the moment at £14.10pw (£733.20 pa), which seems to apply for 2016/2017 (?) it is great value to buy those years, unless you have a significantly reduced life expectancy. The unknown is what future class 3 rates will be.

Based on current rules you have 2 years after the end of each tax year to decide whether to buy the post April 2016 tax year (at the original rate that applied to that year), or 6 years at the then current rate.

So the key thing here is that you don't need to make any decisions until just before 6th April 2019

Hi Im wondering if anything has changed that I need to take account of since my post #345 over two years ago!?

Its in my diary and it seems I need to buy every eligible year from 2016/17 to 2020/21 so 5 years or is it 4 to bridge the gap from £135 to £155 (2016 figures)

Tried to multi quote with my original post #345 that snowman kindly answered but can see no option to do so!? On iPad.

Thanks!

Yorkshire_Pud

Yorkshire_Pud wrote: »

I got my paper copy of my NI record and luckily I have 35 qualifying years so no benefit to buy any pre 2016 years.

My estimate for getting my pension in 2021 was £135 if I make no more NICs and £155 full pension if I buy the NSP NICs for the next 5 years.

I guess the reason my 35 years don't immediately qualify me for the full amount is because I had many Contracted Out years!?

So on the face of it I need to work out if I want to pay the forthcoming NICs as I no longer work in the hope I will live and receive NSP for at least 5 years post 2021 after which the increased Pension I receive by paying 5 years NICs will all be gravy.

If that is correct I think I would wait until 2020 and pay four years past NI at once as I would have a better idea re health wealth etc at that point rather than paying each year as it becomes possible to pay it?

This is my original post #345 referred to in post above.

GunJack

Yorkshire_Pud wrote: »

Hi Im wondering if anything has changed that I need to take account of since my post #345 over two years ago!?

Its in my diary and it seems I need to buy every eligible year from 2016/17 to 2020/21 so 5 years or is it 4 to bridge the gap from £135 to £155 (2016 figures)

Tried to multi quote with my original post #345 that snowman kindly answered but can see no option to do so!? On iPad.

Thanks!

Nothing's changed, but I'd get an updated forecast online before doing anything, just to check...e.g. would you be eligible for any automatic credit years (male, and reach female pension age of someone with same birthday as you), it may save you a year or two's voluntary NI....

molerat

GunJack wrote: »

...e.g. would you be eligible for any automatic credit years (male, and reach female pension age of someone with same birthday as you), it may save you a year or two's voluntary NI....

Not with an SP date of 2021, both male and female age is 66 by then. Men and women are equalised by December this year.


One thing to be aware of is that 2016-17 which today costs £733.20 will, on 6 April 2019, cost something like £780 and increase again in 2020 and 2021.

Yorkshire_Pud

Thanks both.
I did a rough calculation and it would take about 4 years and 3 months being paid state pension to break even given that its taxable and have already paid tax on any extra years bought before 2021.

So after age 70 and 3 months start to benefit for as long as I live after.

If I lived another 10 years it would be worth £10,000 less 20% tax so £8,000 extra but week on week that's only £16.

Something for me to ponder, as its about £780 x 5 years = £3,900 NI upfront.

Lucky I have a private pension so I don't need the full entitlement.

GunJack

molerat wrote: »

Not with an SP date of 2021, both male and female age is 66 by then. Men and women are equalised by December this year.

Bl00dy Hell, that's come around fast.... well reminded

Silvertabby

Not with an SP date of 2021, both male and female age is 66 by then. Men and women are equalised by December this year.
Originally posted by molerat

GunJack wrote: »

Bl00dy Hell, that's come around fast.... well reminded

Hopefully, that will be the end of the WASPI moaning minnies.