Big 65 approaching

srcandas

Hi all. Just really want some clarity as I have less than 8 months to go before I get my state pension. The forecast says:

Summary 40 years of full contributions
1 year to contribute before 5 April 2017
7 years when you did not contribute enough

For the last two years it says: You have contributions from National Insurance credits: 52 weeks
These may have been added to your record if you were ill/disabled, unemployed, caring for someone full-time or on jury service.

What happened was I had two personal pensions amounting to £5000 after tax per year and I lived off savings. I didn't declare myself unemployed. I am a director of a 2 man IT company but claimed no salary or dividends.

I completed Self Assessment and received rebates based on obviously not using my personal allowance after the pension companies extracting 20% tax. I certainly didn’t notify HMRC that I had any special circumstances to claim any contributions.

Does this look ok or should I be looking at buying extra years? Or is there any benefit in buying extra years if that is an option?

As I understand it delaying claiming is not as beneficial as it once was. I assume that is still true.

Many thanks if anyone has a view. :beer:

molerat

Credits for being between 65 and female retirement age probably so will get it this year as well. No point filling any pre 2016 gaps, you already have more than 35 years, as they will have no effect on your pension

srcandas

molerat wrote: »

Credits for being between 65 and female retirement age probably so will get it this year as well. No point filling any pre 2016 gaps, you already have more than 35 years, as they will have no effect on your pension

Tx molerat but I'm a guy. Do I still get free years??? :j

What I don't get is that 65 in August and I was in education until 20. So that seems like more or less 44 years. So why do they say 40 + 1 + 7?? Does it start when you are 16?

Having typed that it sort of seems logical.

If I claim, which I undertand from you good people here I need to get done soon, will they send me a fixed quotation and after that could I still buy years if required?

:beer:

molerat

srcandas wrote: »

Tx molerat but I'm a guy. Do I still get free years??? :j

What I don't get is that 65 in August and I was in education until 20. So that seems like more or less 44 years. So why do they say 40 + 1 + 7?? Does it start when you are 16?

Having typed that it sort of seems logical.

If I claim, which I undertand from you good people here I need to get done soon, will they send me a fixed quotation and after that could I still buy years if required?

:beer:

That is the reason you get them ! it fills the gap between when males and females reach state retirement age.

You get 3 years credits from 16 - 18.

balooney2000

srcandas wrote: »

Hi all. Just really want some clarity as I have less than 8 months to go before I get my state pension. The forecast says:

Summary 40 years of full contributions
1 year to contribute before 5 April 2017
7 years when you did not contribute enough

For the last two years it says: You have contributions from National Insurance credits: 52 weeks
These may have been added to your record if you were ill/disabled, unemployed, caring for someone full-time or on jury service.

What happened was I had two personal pensions amounting to £5000 after tax per year and I lived off savings. I didn't declare myself unemployed. I am a director of a 2 man IT company but claimed no salary or dividends.

I completed Self Assessment and received rebates based on obviously not using my personal allowance after the pension companies extracting 20% tax. I certainly didn’t notify HMRC that I had any special circumstances to claim any contributions.

Does this look ok or should I be looking at buying extra years? Or is there any benefit in buying extra years if that is an option?

As I understand it delaying claiming is not as beneficial as it once was. I assume that is still true.

Many thanks if anyone has a view. :beer:

My understanding of this is you have 7 years where you did not contribute enough - leaving 33 full years. This is not enough years to get the full state pension.

Although adding 1 more year to this April will buy a little bit extra but still not a full SP.

xylophone

What is shown as your "starting amount'?

https://www.gov.uk/check-state-pension

srcandas

xylophone wrote: »

What is shown as your "starting amount'?

https://www.gov.uk/check-state-pension

Xylophone the forecast if that is what you mean is: The forecast is: £220.57 per week.

srcandas

balooney2000 wrote: »

My understanding of this is you have 7 years where you did not contribute enough - leaving 33 full years. This is not enough years to get the full state pension.

Although adding 1 more year to this April will buy a little bit extra but still not a full SP.

Baloney if it started at 16 through to 65 then there is a maximum of 48 years so that must mean 40 paid up plus 7 not paid up plus one to come = 48 surely.

bigadaj

srcandas wrote: »

Baloney if it started at 16 through to 65 then there is a maximum of 48 years so that must mean 40 paid up plus 7 not paid up plus one to come = 48 surely.

Appropriate user name from the previous poster it appears.

Your current pension amount is above the new single tier so you won't benefit from anything additional.

Deferring now would give you the new lower amount, still effectively circa 5% so better than pretty much any other guaranteed investment out there.

xylophone

The forecast is: £220.57 per week.

You can't improve the pension - you already have full NSP plus a protected payment.

https://www.gov.uk/new-state-pension/how-its-calculated

If your starting amount is more than the full new State Pension

The part of your starting amount which is above the full new State Pension is called your ‘protected payment’. This is paid on top of the full new State Pension.

Annual increases
The new State Pension increases each year by whichever is the highest:

earnings – the average percentage growth in wages (in Great Britain)
prices – the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI)
2.5%

If you have a protected payment, it increases each year in line with the CPI.

http://www.pruadviser.co.uk/content/knowledge/technical-centre/the_new_state_pension/

srcandas

Thank you guys and gals. Very much appreciated.

So all I need to do is apply when there are 6 months to go. Cheers