Pension/NI advice needed

jamesd

They will count and will increase it until you reach the flat rate maximum.

vickk

jamesd wrote: »

They will count and will increase it until you reach the flat rate maximum.

I hope you are right but until I found this online people on the gov pensions advice team have been advising I need to purchase 2 years at £720 a year in order to gain the £9 per week.

xylophone

I did some on line searching and have come up with this

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/209123/national-insurance-single-tier-note.pdf

para 63/64

If in 2016 the amount of state pension an individual could become entitled to is lower than the full single-tier pension, they can increase the prospective value of their state pension by gaining further qualifying years up until they reach State Pension age.

Even if an individual is no longer in paid employment they may still gain qualifying years if they are carrying out activities or in circumstances that attract an award of NI credits.

Under the single-tier pension all NI credits will give rise to the same amount of state pension. A full year of credits will give rise to 1/35th of the full rate of the single-tier pension.

This seems to have been a note before pensions legislation was passed but if the relevant legislation was enacted as above, then the OP gets the auto credits to increase NSP.

However, if so ( on the basis that DWP staff understand the auto credits system) it seems strange that

people on the gov pensions advice team have been advising I need to purchase 2 years at £720 a year in order to gain the £9 per week.

At all events, in view of

I have written to the DWP and HMRC asking the question.

presumably the query will be put to a suitably experienced member of staff and the OP will have the assurance in writing of the correct answer.

vickk

Many thanks xylaphone for your efforts. What I would say in my previous questions sent to the advice team, despite me putting in my specifics like DOB , pension forecast etc the answers have always been generic. Using words like may and could and sometimes just replying with links so they may not have looked at my situation as an individual case and more like general. They have sometimes referred to potential credits like being on job seekers but never this particular credit.

hopefully I will get a specific response this time but if not I will have to bite the bullet and phone them

vickk

Well, for anyone who might be interested or in a similar situation I have had a positive response from the DWP as shown below.

[FONT=&quot]Dear Mr Vickers
[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]About your recent email[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Thank you for your email of 16 February 2017[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]If you were born on 15 May 1953, you will be entitled to two years of automatic National Insurance credits for the last two tax years before you reach State Pension age (2016/17 and 2017/18 tax years).[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]This is providing that you are not self-employed and paying class 2 National Insurance contributions or abroad for at least 6 months of those two tax years.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]If none of the above apply to you, then voluntary National Insurance contributions will not be needed for 2016/17 or 2017/18 tax years if you are not working.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]If your starting amount on 6 April 2016 is less than the full rate of new State Pension, you may be able to increase it by adding further qualifying years, up to the full rate of the new State Pension or until the tax year before your State Pension age - whichever comes first. For each extra qualifying year gained after April 2016 you will get approximately £4.45 a week.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Where to get more information[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]If you want more information about anything in this email, please get in touch with us. The address and phone number are at the end of this email.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Yours sincerely[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Carmel Nicol[/FONT]
[FONT=&quot]Correspondence Officer[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Our address The Pension Service 9[/FONT]
[FONT=&quot] Mail Handling Site A[/FONT]
[FONT=&quot] WOLVERHAMPTON[/FONT]
[FONT=&quot] WV98 1LU[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Our phone number 0345 300 0168 [/FONT]
[FONT=&quot] +44(0)191 218 3600[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]If you have a textphone 0845 300 0169[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Email [EMAIL="fpc.customercare@dwp.gsi.gov.uk"]fpc.customercare@dwp.gsi.gov.uk[/EMAIL][/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Website https://www.gov.uk/browse/working/state-pension[/FONT]

Ian011

vickk wrote: »

If you have a textphone 0845 300 0169.

The premium rate 0845 number changed to an inclusive 0345 number almost three years ago.

Looks like someone forgot to update their email signature.

Silvertabby

Thank you! That's a good answer for Mr S as well.