State Pension Forecast, Confusing?

GSP

Hi P00hsticks, I was made redundant early 2016. From early 2015, my pay was "disrupted" as the year progressed and nearly ceased altogether, so 2015 onwards hasn't been "clean".

badmemory

marlot wrote: »

Note that the state pension is taxable, so the payback may take a little longer if you have other pensions or earnings.

Yes I did ignore tax - so it will take less than 4 years 4 months to get your money back, unless of course you are paying 40% tax in which case an extra bit of state pension would be pretty irrelevant, but under 6 yrs payback!

Tom99

If you did not contribute in 2016/2017 you need to pay for 5 yrs starting from 2016/2017. Don't pay for any years prior to that as they will not count.

I can't remember how many years you can backdate but you will be able to wait a bit before you start making these contributions. From a timing point of view it is best to pay for 5 yrs as close to your retirment age as possible just in case you pop off beforehand.

GSP

Many thanks Tom.
I have 12 years to contribute those 5 years. I wonder if it would be more expensive to leave payments to the end? Valid points about starting from 2016/17, and popping off! There could be changes in legislation also, though that could work for or against.

Tom99

GSP wrote: »

Many thanks Tom.
I have 12 years to contribute those 5 years. I wonder if it would be more expensive to leave payments to the end? Valid points about starting from 2016/17, and popping off! There could be changes in legislation also, though that could work for or against.

Yes it could be more expensive to leave it and the number of back years you can pay for may be reduced as well. So you could start this year and pay 2016/17 then next year pay 2017/18 and so on.

I have paid 2016/17 in a one off lump £733.20 a few months ago and it is already showing my increase pension. Remember to state what year you are paying for when you write a letter.

[FONT=Tahoma, sans-serif]HM Revenue and Customs
National Insurance Contributions and Employer Office
Benton Park View
Newcastle upon Tyne
NE98 1ZZ [/FONT]

GSP

Thanks Tom