HMRC pension estimate

Nationwide8

molerat wrote: »

The amount increases each year in line with inflation, the £733.20 is the 2015-16 and 16-17 rate. The 2015-16 figures should be done by end September. Many here have reported theirs up to date already but mine is not, maybe being early retired there is no reporting done so it will be last to update.

Thanks again molerat,I just have to decide if it's worth paying the extra contributions to give me £30 extra a week at 67 when 1) there are no guarantees people get to SP age to be able to even benefit esp since it could be higher than 67 by the time I get there..
2 ) £125 x 4 = £500 a month as it stands now on top of private pension seems OK to me esp as I'm *managing* without it now.

bigadaj

Nationwide8 wrote: »

Thanks again molerat,I just have to decide if it's worth paying the extra contributions to give me £30 extra a week at 67 when 1) there are no guarantees people get to SP age to be able to even benefit.
2 ) £125 x 4 = £500 a month as it stands now on top of private pension seems OK to me esp as I'm managing without it now.

If you got a part time job earning above the lower limit for NI contributions, so around £6k per year, you would get the additional credit towards the new pension.

Just something to consider.

Nationwide8

bigadaj wrote: »

If you got a part time job earning above the lower limit for NI contributions, so around £6k per year, you would get the additional credit towards the new pension.

Just something to consider.

Yep,have had that thought,will check up when you start paying NI on amounts earned.
Is a private pension taken into consideration to add to earnings for NI contributions ? ...I know it is for tax.

molerat

Earnings between £112 - £155 pw get NI credits without paying contributions. Pension income is not counted for NI purposes.

bigadaj

Nationwide8 wrote: »

Yep,have had that thought,will check up when you start paying NI on amounts earned.
Is a private pension taken into consideration to add to earnings for NI contributions ? ...I know it is for tax.

No, for the fairly logical reason that you don't pay NI on pensions.

p00hsticks

Nationwide8 wrote: »

All this could change in the time frame I'm looking at but reading around 6 yrs of NI contributions is the most you can go back to "fill",so can you eg pay 5 - 6 yrs back contributions in a lump sum if you wanted rather than pay weekly or yearly ?

Just to reiterate in case it's not clear - you need to look at buying years from April 2016 forwards. Going back to fill any pre-2016 years is unlikely to make any difference

bigfreddiel

molerat wrote: »

You can get NI credits in many ways other than by paying for them. MrsM got 19 years for receiving child benefit and is now receiving them for looking after grandchildren. So someone who has never worked can get a full SP.

You're correct and so is my second statement, I didn't mention where the contributions come from! Thanks for clearing that one up fj

bigfreddiel

bigadaj wrote: »

No, paying exactly the same NI as those not contracted out. It's just that the NI that must be paid by those not contracted out doesn't get them anymore benefit.

There is no contracted out option now, everyone is contracted in, thus the term single tier state pension. fj

bigadaj

bigfreddiel wrote: »

There is no contracted out option now, everyone is contracted in, thus the term single tier state pension. fj

Yes, but assuming two people of similar age, with significant payments pre 2016 the contracted out person will only have £119 as a starting amount, whereas the contract in person could easily have £155 if not more.

From now on both will have to pay NI, but the contracted out person keeps earning credit up to the £155 limit, whereas the contracted in person gets nothing for that NI paid, at least in pension terms .

Nationwide8

p00hsticks wrote: »

Just to reiterate in case it's not clear - you need to look at buying years from April 2016 forwards. Going back to fill any pre-2016 years is unlikely to make any difference

I've missed this,Why ??

I contributed NI for 3mths April 2015-April 2016 then early retired.

So it would make little difference to pay the "gap" for 2015 -2016 ?