40 Years of NI contributions = £119.35 :(

glennevis

"you could register as self employed and pay class 2 This would save you £500 less the few pounds tax on earnings."

Yes but, as I found out when I called the pensions help line, you can only do this until 2018 because class 2 is going to be abolished, after that you would have to pay class 3.

OldBeanz

Still a potential saving of £1,000 which on some parts is of this forum would appear as manna from heaven.

bigfreddiel

What is it about people saying they have made x number of years full contributions and in the next breath they say they were contracted out. You haven't made full contributions! You've made reduced contributions so you get less state pension.

Isn't that obvious?

Cheers fj

mark1959

bigfreddiel wrote: »

What is it about people saying they have made x number of years full contributions and in the next breath they say they were contracted out. You haven't made full contributions! You've made reduced contributions so you get less state pension.

Isn't that obvious?

Cheers fj

I think the DWP's own website says "full contributions" when you log on to your pension forecast, whether you've been contracted out or not. I know my forecast did.

Silvertabby

“ What is it about people saying they have made x number of years full contributions and in the next breath they say they were contracted out. You haven't made full contributions! You've made reduced contributions so you get less state pension.

Isn't that obvious?

Cheers fj
Originally posted by bigfreddiel

I think the DWP's own website says "full contributions" when you log on to your pension forecast, whether you've been contracted out or not. I know my forecast did.

It does, but I think DWP means full financial years, not full unreduced years.

musbury

I've 44 years NI contributions but 34 years were I was contracted out, my state pension forecast is £119.00 pw for the past 4 years I've been working part time and not contracted out, I'll hopefully continue for a few years more am I helping to increase my state pension by the longer I'm employed - any advice would be appreciate Da!

molerat

musbury wrote: »

I've 44 years NI contributions but 34 years were I was contracted out, my state pension forecast is £119.00 pw for the past 4 years I've been working part time and not contracted out, I'll hopefully continue for a few years more am I helping to increase my state pension by the longer I'm employed - any advice would be appreciate Da!

Every year contributed from April 2016 onwards will add £4.45 to that £119.00.

xylophone

I've been working part time

You are paying ( or being credited) with NI?

musbury

xylophone wrote: »

You are paying ( or being credited) with NI?

Oh yes, thanks.

Bootsox

bigfreddiel wrote: »

What is it about people saying they have made x number of years full contributions and in the next breath they say they were contracted out. You haven't made full contributions! You've made reduced contributions so you get less state pension.

Isn't that obvious?

Cheers fj

Your statement only gives one side to the story.

Gordon Brown's constant meddling with NI rates and thresholds meant that plenty of people ended up paying a lot more in NICs.

The small saving in being contacted out was completely swamped by the more than doubling of the NICs I ended up paying:

£1,743 in 96/97
£3,798 in 09/10

Saying that people must have a lower pension because they were contracted out is just a lame excuse to squeeze more money out of the taxpayer via Class 3 NICs.