Pension/NI advice needed

vickk

Sorry for raising this old thread but I wonder if someone could explain the relevance of the following quote in relation to my circumstances. I understand I can improve mt pension if I pay NI for 2016, 2017 and 2017 2018 but does this cover it


Men approaching 65

Your situation How to get credits You’re between the current women’s State Pension age and 65, live in the UK at least 183 days a year and you’re in one of these situations: you don’t work, you don’t earn enough to make a qualifying year, or you’re self-employed with a small earnings exception You get Class 1 credits automatically

p00hsticks

vickk wrote: »

Sorry for raising this old thread but I wonder if someone could explain the relevance of the following quote in relation to my circumstances. I understand I can improve mt pension if I pay NI for 2016, 2017 and 2017 2018 but does this cover it

It depends on your exact date of birth - see the table in the link here as to how many years credits you can get and for what years.

https://www.gov.uk/automatic-pension-credits-for-men

xylophone

but does this cover it?

I'm not sure that it does.

https://www.gov.uk/automatic-pension-credits-for-men

If you’re a man born before 6 October 1953, you might get credits towards your basic State Pension for tax years when you were aged 60 to 64.

But you already had the right to a "basic state pension" (£119.30) when your "starting amount" was calculated at 6.4.16.



If the "credits" don't improve your NSP then you would have to pay the VCs?

It would be best to check the point with DWP?

kidmugsy

vickk wrote: »

So, I could pay voluntary contributions for the next 2 years at a total approx cost of £1440 to improve my pension by £9 per week, and I can do this either monthly or quarterly in arrears.

Can i wait 2 years and pay them in one go at retirement age? or can i pay 2 years in advance?

An extra £450 for life in return for £1440. I'd pay up ASAP in case the price went up.

vickk

I was born in may 1953 so I could get 2 years pension credit, however if I understand xylaphone correctly then they can only count towards my basic state pension which I have already qualified for. I take it you are suggesting I can not get the 2 years that would increase my pension through the new system.

kidmugsy, I would pay up asap only they will not allow me to pay in advance.

molerat

I can't see how you are not entitled, the "basic" pension is £155.65 so any credits should add to any amount below this.

Class 3 rates are guaranteed at the in year price for 2 years after the end of that year so no rush to buy if necessary.

xylophone

I take it you are suggesting I can not get the 2 years that would increase my pension through the new system.

No, I'm suggesting that rather than being credited you would have to pay VCs to improve the NSP - check with DWP.

Silvertabby

I can't see how you are not entitled, the "basic" pension is £155.65 so any credits should add to any amount below this. Posted by molerat

£155 per week is the new single tier pension, not the old basic State pension (of £119 per week). xylophone has a point - if you use his link it does say that you can increase the basic State pension with the 'free' credits then, if you click on the link for 'basic state pension' that confirms £119 per week.

Bit of a pooh - thought that Mr S would get 2 years on top of his foundation level of £134, but looks like he may have to pay for them - or will he? The link does say that this refers to those who reached State pension age before April 2016.

Gah ! I've got a pensions background, and it's still not clear - God help anyone else!

greenglide

Autocredits for men between Female SPa and Male SPa are bog standard credits to your NI account and give you the same as class 1, class 3 etc.

Autocredits will increase the new State Pension amount until the maximum of £155.65 is reached.

vickk

Many thanks for all the replies. I have read this over and over and my conclusion would suggest that I will get Class 1 NI credits for this tax year and the next, the confusion comes as whether thay will count to the increase of my pension or not. I have written to the DWP and HMRC asking the question.

Automatic pension credits for men born before 1953


If you’re a man born before 6 October 1953, you might get credits towards your basic State Pension for tax years when you were aged 60 to 64.

You’re eligible if you’re a man born before 6 October 1953 and one of the following applied during tax years when you were aged 60 to 64:

• you weren’t working
• you weren’t earning enough to pay or be treated as paying National Insurance contributions

If this applies to you, you should add the years as shown in the table to your result from the State Pension calculator.
When you were born Credits to add Add credits for tax years when you were aged Before 6 October 1950 5 years 60 to 64 Before 6 October 1951 4 years 61 to 64 Before 6 October 1952 3 years 62 to 64 Before 6 July 1953 2 years 63 to 64 Before 6 October 1953 1 year 64 You shouldn’t count these credits for tax years when you were out of the UK for more than 6 months or self-employed and paying Class 2 National Insurance contributions.
The lower age limit is gradually increasing in line with women’s State Pension age.


Last updated: 4 November 2016