State Pension calculation - Is this correct?

HappyMJ

greenglide wrote: »

Is it not already invested?

You don't need to cash it all in to invest it (there are tax implications if you do).

The money in my pension is invested in medium risk asset classes. When I can take it I'll take the lot and invest it to earn more than the annuity rates offered. My pension pot is only about £10,000 there isn't going to be much tax to pay on that.

HappyMJ

Freecall wrote: »

Please correct me, that's what I am looking for. As I say, it looks too good to be true.

Isn't there some other way you can get National Insurance contributions for free?

As you're not working have you considered working either for an employer or for yourself and earning just enough to qualify and not have to pay for them? That's what I do...I am paid £112 a week through my Ltd. company and I am credited with NI for free.

If you're too ill to work you can sign on for ESA and you will get NI credits also for free even if you do not qualify for any payment. That's what my partner does. She never has to visit the DWP or Jobcentre. If you don't get any money they leave you alone.

xylophone

As you're not working have you considered working either for an employer or for yourself and earning just enough to qualify and not have to pay for them? That's what I do...I am paid £112 a week through my Ltd. company and I am credited with NI for free.

And all without an NI number? Or have you been issued with one at last?:)

https://forums.moneysavingexpert.com/discussion/comment/70128354#Comment_70128354

I just ticked the No box when asked for my National Insurance Number. I've never been issued with one and I have an ISA.

Freecall

HappyMJ wrote: »

Isn't there some other way you can get National Insurance contributions for free?

If only....

HappyMJ wrote: »

As you're not working have you considered working either for an employer or for yourself and earning just enough to qualify and not have to pay for them? That's what I do...I am paid £112 a week through my Ltd. company and I am credited with NI for free.

As it happens I sold my company last year but that's another story.

Working - maybe but for now I am enjoying my retirement.

:beer:

Freecall

I have found a really clear article on the subject from last year in one of the IFA journals.

http://citywire.co.uk/new-model-adviser/news/steve-webb-how-to-boost-new-state-pension-payments/a827032

Looks like we were correct, it really is a no-brain excersise.

The biggest fear seems to be that if you leave it for 6 years the government may withdraw the offer as it could be considered as too generous.

Doesn't stop people taking advantage of the deal for the current year though.

What I don't understand is why this is not being sung from the rooftops. The new state pension scheme seems to have had such a bad press but this aspect really should be broadcast more widely.

I guess bad news sells.

:cool: