HMRC pension estimate

molerat

Whether it is worth paying post 2016 years and what it will achieve is quite straight forward and easily answered, it is pre 2016 years that are problematic.

xylophone

Which, when it eventually arrives, will likely not make the situation any clearer. They are unlikely to give you a straight answer, if you want that you will have to pay for advice. It is fairly simple to work out for yourself though.

http://www.thisismoney.co.uk/money/pensions/article-3535618/STEVE-WEBB-Buying-ups-paying-missing-NI-boost-state-pension.html

"If all of this seems rather baffling, help should hopefully soon be at hand! The Government is working a website where you will be able to see all of your National Insurance history and answer ‘what if’ questions about the effect of paying additional contributions for particular years.

The delivery date for this website keeps slipping but the Pensions Minister Baroness Altmann recently told the Work and Pensions Select Committee that she expected the website to be available in the Autumn.
Given that there is no rush to pay voluntary contributions in any case, probably the best strategy is to wait until this website becomes available and then use it to work out the cheapest way to boost your state pension through voluntary contributions if that is what you wish to do. "

xylophone

Old rules give you £119.30 for 30 NI years. plus any SERPS/ S2P additional pension earned through being contracted in.

It was possible to earn some S2P even if contracted out.

https://en.wikipedia.org/wiki/State_Second_Pension


S2P gives all employees earning up to £32,592 a year (in 2011/12) a larger pension than SERPS, regardless of whether they are "contracted out" or not - with most help going to those in the '"lowest"' earnings (up to £14,400 a year in 2011/12) - known as the "LET" or '"Low Earnings Threshold"'.

Contracting out ended for DC schemes from April 6 2012 and for DB Schemes from 6 April 2016.

Nationwide8

xylophone wrote: »

http://www.thisismoney.co.uk/money/pensions/article-3535618/STEVE-WEBB-Buying-ups-paying-missing-NI-boost-state-pension.html

"If all of this seems rather baffling, help should hopefully soon be at hand! The Government is working a website where you will be able to see all of your National Insurance history and answer ‘what if’ questions about the effect of paying additional contributions for particular years.

The delivery date for this website keeps slipping but the Pensions Minister Baroness Altmann recently told the Work and Pensions Select Committee that she expected the website to be available in the Autumn.
Given that there is no rush to pay voluntary contributions in any case, probably the best strategy is to wait until this website becomes available and then use it to work out the cheapest way to boost your state pension through voluntary contributions if that is what you wish to do. "

Interesting...am not going to do anything for a long while but am trying to get my head around the possibilities and have to wait anyway until my pension estimate on the gov page updates to include up to April 2016,wonder how much difference 3 mths NI contributions for 2015 -2016 will make to the £125 maybe £4.25 / 4 .. for a quarter of a year might give me an extra £1 ??

Am also waiting for my tax statement 2015 - 2016,got the 14 -15 one about this time last year.They owe me tax back I paid when I worked for 3 mths,hoping they do it automatically when it's flagged up as overpaid.

Nationwide8

molerat wrote: »

Whether it is worth paying post 2016 years and what it will achieve is quite straight forward and easily answered, it is pre 2016 years that are problematic.

Well I guessed if I did pay 9 mths back ( £550 approx ) for the time I didn't work 2015 -2016 I would gain £4.25 x three quarters = £3.18 but going from what's been said on here it's not that simple for 2015 -2016 ?

p00hsticks

Nationwide8 wrote: »

Well I guessed if I did pay 9 mths back ( £550 approx ) for the time I didn't work 2015 -2016 I would gain £4.25 x three quarters = £3.18 but going from what's been said on here it's not that simple for 2015 -2016 ?

I think your guess is wrong - the £4.25 a year is for years AFTER the new State Pension came in - i.e 2016-17 onwards. As I've said previously, I think from what you have previously said about your forecast and record, it is highly unlikely that making up year 2015-16 is going to achieve anything in your case, other than reduce your bank balance by £550.

Techno

Mole rat - I don't think mrs M will be too impressed by you lumping her in with someone who has never worked �� bringing up children is a pretty tough job!

otb666

i have done on line forcast and have 33 years i am 50 estimate 143.85pw now when i retire 155.65pw another 3years needed- i have a COP of 13.77pw i thought i would need a further 4 years to make up my COP-Just rung them and they said no the 143.85pw included the COP being deducted already therefore do i need to do a further 3 or 7 years, i have worked always and for same company since 1994 i thought i was contracted out quite early on and have two kids 24 and 18yrs old, I do not really understand this at all

molerat

Techno wrote: »

Mole rat - I don't think mrs M will be too impressed by you lumping her in with someone who has never worked �� bringing up children is a pretty tough job!

Wow - jumping to conclusions a bit there. Where did you get that implication from ? I was merely showing that a full state pension can be achieved with little to no paid employment

p00hsticks

otb666 wrote: »

i have done on line forcast and have 33 years i am 50 estimate 143.85pw now when i retire 155.65pw another 3years needed- i have a COP of 13.77pw i thought i would need a further 4 years to make up my COP-Just rung them and they said no the 143.85pw included the COP being deducted already therefore do i need to do a further 3 or 7 years, i have worked always and for same company since 1994 i thought i was contracted out quite early on and have two kids 24 and 18yrs old, I do not really understand this at all

You're currently going to get £143.85, so need an additional three years to get you to the maximum £155.65.

the COPE figure is best ignored - it's an estimate of the extra you could have got by benig contracted in and quoting it was intended to provide additonal information but has just caused more confusion