State pension forecast

molerat

Get an on line account, all the missing years that are available to buy are shown along with price. Don't phone DWP unless you want to end up more confused than when you started. Any questions can be answered here, especially the ones about whether pre 2016 years will count.

p00hsticks

molerat wrote: »

Get an on line account, all the missing years that are available to buy are shown along with price. Don't phone DWP unless you want to end up more confused than when you started. Any questions can be answered here, especially the ones about whether pre 2016 years will count.

And be wary of buying pre-2016 years, which may not increase the pension amount.

barnes69442

My wife has a COPE reduction of £6.68 and has to pay £648.60 for 2016/17 (46 weeks).
I believe this will result in an increase of £4.56 per week.
If that is the case it should take only 143 weeks for a net gain to be made if I understand the rules correctly.
2017/18 does not look like it would be anywhere near as good a calculation.
Please advise.

molerat

On the gross amount received yes. £741.00 for 17/18 will only take 162 weeks so still excellent value. Don't forget that £4.58 is increased by inflation each year. Does she have any pre 2016 years available and if so have you run the calculations on them being economical ?

barnes69442

There are no pre 2016 years available.
Years missing 75-78 & 91-93 all time expired.
She does not become eligible for her state pension till 2022 but is very unlikely to work again.
As her shortfall is £6.68 and if we pay the £648.60 I make it that for the extra £2.12 shortfall it would be about 350 weeks before she breaks even if she pays the 2nd year., not quite such an attractive option.

molerat

Still like buying a 15% annuity so not too shabby a return

GunJack

Don't look at it against the COPE amount...if most of her years were pre-2016 the cope was only used once in the calculation of her starting amount, it won't be taken off her SP amount.

ossie48

molerat wrote: »

You would seem to have a problem then.

You need to contact the NI records office and get them to check on your contracted out status. You could also contact your pension providers to confirm that the schemes were contracted out, 99.99% chance they were..

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/national-insurance-enquiries-for-employees-and-individuals

Thread starter here : I have finally received a reply.

My estimate based on my NI record up to 5th April is £122.29 a week. My forecast if I contribute another 9 years before 2032 is £159.55.

My COPE estimate is £78.75 a week.

Any suggestion on the way forward or do I settle on £122.29 a week..There's nothing about making up the amount (Just to recount I'm retired on a Final salary pension since 2013)

cheers

xylophone

Thread starter here : I have finally received a reply.

https://forums.moneysavingexpert.com/discussion/5729633

See post 8 above and https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf
but for NSP read 155.65 and for BSP £119.30.

Linton

ossie48 wrote: »

Thread starter here : I have finally received a reply.

My estimate based on my NI record up to 5th April is £122.29 a week. My forecast if I contribute another 9 years before 2032 is £159.55.

My COPE estimate is £78.75 a week.

Any suggestion on the way forward or do I settle on £122.29 a week..There's nothing about making up the amount (Just to recount I'm retired on a Final salary pension since 2013)

cheers

Paying voluntary Class 3 NI contributions is a very cheap way of increasing your retirement income. You pay about £740 in one year to get an extra £240/year for every year you draw State Pension. Which means that after 20% tax you get back your contribution in about 4 years. So if you have a spare 9 years before reaching SP age I think you would be mad not to do it. Once you reach a full SP further NI contributions have no effect.