New State Pension Guide

Straightbat

The Government web-site is not very clear on this, but a newspaper article I have read by Steve Webb seems to confirm that if my new state pension starting amount is below the maximum and my retirement age is after April 2017 I can pay a voluntary National Insurance contribution for 2016-17 to enhance my pension's starting amount, and so on for every complete year until I reach my state pension age. But there is nothing in the MSE guide about this even though it would seem to be an excellent way to enhance one's pension if the funds are available.

Secondly my state pension age is actually February 2018 so I can only purchase one of these years anyway. But is it too late for me to do this now?

(And thirdly, if all this is correct, why is there so little information about it?)

Straightbat

The Government web-site is not very clear on this, but a newspaper article I have read by Steve Webb seems to confirm that if my new state pension starting amount is below the maximum and my retirement age is after April 2017 I can pay a voluntary National Insurance contribution for 2016-17 to enhance my pension's starting amount, and so on for every complete year until I reach my state pension age. But there is nothing in the MSE guide about this even though it would seem to be an excellent way to enhance one's pension if the funds are available.

(Excerpt from article: "With regard to future years, the key question is whether your starting amount is less than £155.65, regardless of whether it was worked out under the old system or the new system. If your starting amount is under this rate, then any full year of contributions or credits from 2016/17 onwards will add to your state pension. The price of voluntary contributions is generally relatively modest compared with the extra pension you get, so as long as you draw a state pension for four or so years then you will get back what you have paid and more.")

Secondly my state pension age is actually February 2018 so I can only purchase one of these years anyway. But is it too late for me to do this now?

(And thirdly, if all this is correct, why is there so little information about it?)

p00hsticks

Straightbat wrote: »

The Government web-site is not very clear on this, but a newspaper article I have read by Steve Webb seems to confirm that if my new state pension starting amount is below the maximum and my retirement age is after April 2017 I can pay a voluntary National Insurance contribution for 2016-17 to enhance my pension's starting amount, and so on for every complete year until I reach my state pension age. But there is nothing in the MSE guide about this even though it would seem to be an excellent way to enhance one's pension if the funds are available.

Secondly my state pension age is actually February 2018 so I can only purchase one of these years anyway. But is it too late for me to do this now?

(And thirdly, if all this is correct, why is there so little information about it?)

It may not be in the MSE guide but it's been discussed frequently on this board. This is the guide most commonly linked to for great guidance on the subject

https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

I believe you can go back up to six years to pay incomplete NI years - as far as I'm aware the fact that you are now over State Pension age doesn't prevent that.

Straightbat

Perfect, thank-you! But I am still shocked by the lack of information about this in the MSE guide and on the government web-site, where it is almost impossible to distinguish it from buying missing years before 2016, therefore leading to much uncertainty as that is a different scenario.

It is very disappointing of MSE :money: who always give the excuse that they can't give too much detail, because in fact this what they always do, lulling everyone into a false sense of them having covered every eventuality!

It is particularly annoying and actually misleading (therefore bordering on misinformation) because you could easily end your research in ignorance as a result of this, when there is a section on how to enhance your pension from which this option is missed out completely with no indication that the section is, or could be, incomplete.

(It needs to be highlighted because it is not just a matter of getting up to 35 years - you can purchase more after 2016 that takes you over 35 and still have an impact on your pension - can't you?)

p00hsticks

Straightbat wrote: »

(It needs to be highlighted because it is not just a matter of getting up to 35 years - you can purchase more after 2016 that takes you over 35 and still have an impact on your pension - can't you?)

You can - and there will also be people out there who have already reached the new maximum in less than 35 years (although if working they will still have to pay NI until they give up working or reach State Pension age).

The issue is, I think, that the media have just picked up on the '35 years for a new State Pension' without qualifying this by saying that that is only for people just starting their working lives - for the rest of us there are transitional rules in place which means that everyone's position is different.

However, it is pretty straightforward to get an individual pension forecast online via gov.uk and everyone should be encouraged to do this.

Straightbat

But MSE :money: presents itself as the consumer champion, able to pick holes in everyone else's shoddy or incomplete advice! A bit of humility wouldn't go amiss! And I'm not sure an individual forecast would make this clear either, would it? If all we need is one of those, why bother with an MSE guide at all?

Terron

gadgetmind wrote: »

As for cash state benefits, I'll get state pension at age 67 but nothing else unless you count bus pass, which will probably be means tested by then along with everything else! NHS you get no matter how little NI you've paid. Me paying more NI now won't get me anything in return so I'm less than enthusiastic to be doing it.

It's called National Insurance for a reason. Paying insurance and not having to use it is generally considered a good thing. There are benefits you only get if you have paid. which you probably don't expect and hope not to need.

mgdavid

Straightbat wrote: »

Perfect, thank-you! But I am still shocked by the lack of information about this in the MSE guide and on the government web-site, where it is almost impossible to distinguish it from buying missing years before 2016, therefore leading to much uncertainty as that is a different scenario.

It is very disappointing of MSE :money: who always give the excuse that they can't give too much detail, because in fact this what they always do, lulling everyone into a false sense of them having covered every eventuality!

It is particularly annoying and actually misleading (therefore bordering on misinformation) because you could easily end your research in ignorance as a result of this, when there is a section on how to enhance your pension from which this option is missed out completely with no indication that the section is, or could be, incomplete.

(It needs to be highlighted because it is not just a matter of getting up to 35 years - you can purchase more after 2016 that takes you over 35 and still have an impact on your pension - can't you?)

All the information on MSE is worth exactly what you paid for it.
You may do well to stop and mull over that for a few minutes.
There is a grave danger of future generations believing everything they read on the internet as if it were 'the truth, the whole truth and nothing but the truth'.
It isn't.

Straightbat

Thank you David but I only needed a few seconds.

I am very appreciative of MSE :money: but there is a touch of arrogance which grates a bit! (Ok, maybe it is justified in comparison with other sources of advice, but "physician heal thyself" also comes to mind when there are omissions that could easily mislead the purportedly well led public!)

And in actual fact I do pay for it...through all of the revenue generated when I click on its links, and through all the commission it is paid when I use it to switch energy provider!

Straightbat

Straightbat wrote: »

The Government web-site is not very clear on this, but a newspaper article I have read by Steve Webb seems to confirm that if my new state pension starting amount is below the maximum and my retirement age is after April 2017 I can pay a voluntary National Insurance contribution for 2016-17 to enhance my pension's starting amount, and so on for every complete year until I reach my state pension age. But there is nothing in the MSE guide about this even though it would seem to be an excellent way to enhance one's pension if the funds are available.

Secondly my state pension age is actually February 2018 so I can only purchase one of these years anyway. But is it too late for me to do this now?

(And thirdly, if all this is correct, why is there so little information about it?)

p00hsticks wrote: »

You can - and there will also be people out there who have already reached the new maximum in less than 35 years (although if working they will still have to pay NI until they give up working or reach State Pension age).

The issue is, I think, that the media have just picked up on the '35 years for a new State Pension' without qualifying this by saying that that is only for people just starting their working lives - for the rest of us there are transitional rules in place which means that everyone's position is different.

However, it is pretty straightforward to get an individual pension forecast online via gov.uk and everyone should be encouraged to do this.

Thank you Poohsticks but the plot yet thickens more. I have now discovered that I do not have to pay a voluntary NI contribution for 2016-17 after all because for men of my age it is automatically credited!
Now where in all the published advice and guidance does it tell me that, and why does everywhere talk of me having to pay a voluntary contribution for that year instead :question::wall:?