Wife's Pension Forecast

Hal17

I am sorry to add a further post on this subject, I noticed that this subject has been discussed a number of times recently, but we cannot get our head around what we should do?

My wife took earlier retirement when she was made redundant in August 2013 and has not worked since. She will be 62 next week and is 4 years from SP age.

Her SP forecast received today states she has 43 years of full contributions, however, having worked for an employer with a non contributory pension scheme, I guess she was contracted out.

On the forecast she has the following figures:
1. £141.71 per week - Based on current NI records
2. £155.65 per week - Needs to contribute another 4 years
3. £13.94 COPE - which is the difference between the 2 figures.

On her NI records it shows shortfalls against the following years, where it states she could pay a voluntary NI contribution:

2013-2014 - £121.95
2014-2015 - £722.80
2015-2016 - £733.20

Is it just the case that she pays a total of the 3 years above, plus say a 4th year at £733.20 - Total £2,311.15 and then she will have enough qualifying years to get the full pension of £155.65.

Really appreciate any thoughts on the above. Thank you.

molerat

She already has the full 35 years so purchasing those pre 2016 years will not add to her pension. She needs to purchase post 2016 years only.

Linton

She has plenty of NI years. The problem is that because of a period where she was contracted out of SERPs she didnt pay the full NI. However as a feature of the new State Pension system any NI years earned after April 2016 can be used to help increase the SP up to the £155.65 at the rate of £4.45/week per NI year. Pre 2016 years dont count, but she can make voluntary NI payments for each of 2016/2017, 2017/2018, and 2018/2019 which she can just fit in before she reaches SP age. This is a very good offer!

Hal17

Thank you for your reply. I have just managed to call Tax helpline and they were extremely helpful in explaining it to us.

What was confusing us when we compared both our forecasts , was that the COPE figure on the wife's forecast was the same as the difference between the two forecasts she was given, and this I understand was just a pure coincidence.

So going forward she needs to decide if paying a future 4 years at £2,932.80 is worthwhile for the extra pension. I gather we can make this decision a few months before she reached SP age.

Easy to understand when it is explained - really helpful lady on the telephone.

Hal17

Thank you both.

Linton I could have waited for your reply and saved a phone call.

I think we will wait until nearer SP age and access at that time - then pay the missing 4 years and as you say, it is worth doing.

bigadaj

Hal17 wrote: »

Thank you both.

Linton I could have waited for your reply and saved a phone call.

I think we will wait until nearer SP age and access at that time - then pay the missing 4 years and as you say, it is worth doing.

It has been reported that some people have registered as seeking work and so have NI credits applied without a need to actively job seek.

Might be worth looking into.