LGPS ASP Newsletter

Wentthedaywell?

Sorry, I'm still not clear.

Am I right in thinking I can't make any to-up payment now, or in the near future, and hence the April 2017 deadline doesn't apply to me?

If I wanted to make up for the contracted out years do I carry on paying NI contributions from retirement in Sept 17 (at 60) to SPA in 2023? Or would I stop at some intermediate date when the maximum will have been reached?

saver861

Wentthedaywell? wrote: »

Sorry, I'm still not clear.

Am I right in thinking I can't make any to-up payment now, or in the near future, and hence the April 2017 deadline doesn't apply to me?

If I wanted to make up for the contracted out years do I carry on paying NI contributions from retirement in Sept 17 (at 60) to SPA in 2023? Or would I stop at some intermediate date when the maximum will have been reached?

I think you might be mixing up contracted out years. You don't make up for contracted out years. Put another way, if you have 30 years NIC's at April 2016 and they were all contracted out, you will still get the full basic state pension of £119. Thats what you would have gone anyway.

Just to clarify further, if you are referring to the Top-up before April 2017 deadline, that does not apply to you. That only applies to men older than 64 and women older than 62 thus you are not in that bracket.

If you want to add years to that after April 2016 and before your spa, then you either carry on working or pay voluntary contributions. Each year will add £4.40 to your existing £119 per week.

xylophone

I'm guessing the cost will be around the same as it is now at £14 or so. If they make the cost too much more then its unlikely to be worth it to get to the breakeven point.

Why are you guessing?

Did you read the information re class 3 NI for 2016- 17 in the link in my previous post?

Wentthedaywell?

So have I got this right please?

I could retire at 60 but carry on paying NI at about £14 pw. for 6 years (till SPA) in order to get, at my SPA of 66, another £4.32 pw. for each of those 6 years that I paid extra.

At most, this would give me £25 pw. - I won't have time to make up the full £40 difference. I appreciate I'm no worse off than I would have been, I'm just wondering if there's any way to maximise my SP, by contributing more beforehand to make up for my contracted out years.

saver861

xylophone wrote: »

Why are you guessing?

Did you read the information re class 3 NI for 2016- 17 in the link in my previous post?

Yes - for next year the cost is £14.10 - so that is fixed.

And I'm 'guessing' it will remain around that cost ongoing! They could put it up but if they put it up too much it would not be worthwhile in terms of getting to the breakeven point.

saver861

Wentthedaywell? wrote: »

So have I got this right please?

I could retire at 60 but carry on paying NI at about £14 pw. for 6 years (till SPA) in order to get, at my SPA of 66, another £4.32 pw. for each of those 6 years that I paid extra.

Yes. So by my quick reckoning you will have £119 as of April 2016. You will work another year say - which will bring it to £123. Any year you buy after that will add £4.40 to this total.

Wentthedaywell? wrote: »

At most, this would give me £25 pw. - I won't have time to make up the full £40 difference. I appreciate I'm no worse off than I would have been, I'm just wondering if there's any way to maximise my SP, by contributing more beforehand to make up for my contracted out years.

No is the answer to that. You cannot somehow make changes to your CO years and as it stands you will be just short of the £155 in any case.

Wentthedaywell?

Thanks Saver for your explanations.

It is something I will seriously consider in a year or so, as I don't have to do anything immediately.

saver861

Wentthedaywell? wrote: »

Thanks Saver for your explanations.

No worries .. its all good.

Wentthedaywell? wrote: »

It is something I will seriously consider in a year or so, as I don't have to do anything immediately.

Well the only thing you need to do if you have not done is get your state pension forecast. You can check that against what you think it should be. If it is different then follow it up.

Also, you need to keep on top of any changes that might happen, particularly in the March budget and any alterations that might happen to the new state pension.

It will take a deal of time for it to bed in and might subject to changes and alterations as they proceed.