State pension forecast

Dazed_and_confused

But think carefully before buying the final year as that isn't necessarily as cost effective.

While you are well short of the full £159.55 each year you buy will add £4.55 to your weekly State Pension payment and that is seen as a good use of the £741 it costs to buy the year. Depending on your tax position you normally get the £741 back in extra pension in about 4 years.

But if you buy extra year(s) National Insurance and get to say £158.95, buying another year to get the full £159.55 wont be quite as attractive as you would still have to pay £741 but will really only get 60p/week in return.

So instead of taking around 4 years to recoup your original £741 it will be more like 30 years before you see the full £741 back in increased pension.

molerat

LULULU1 wrote: »

I intend to do some part time work after I retire from fulltime work in 2020.

Just make sure you earn more than £113 per week (the "LEL", increased by inflation each year https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions) and you will get NI credits

LULULU1

So are you saying as long as I earn £113 per week my national insurance contributions will be all covered to give me full pension.

Thanks

molerat

Pretty much. As long as you earn 52 times the LEL in a year you will be credited with a whole year. If you don't make that then each week you earn in excess of the LEL you will be credited with one week. The £113 is for 2017-18, the LEL increases each year with inflation.