Pension gaps?

Sallyso

I’d really appreciate any advice on the following.

I have large gaps in my national insurance record, currently I have 7 years full contributions. I have been with the new pension government scheme for 2 years paying the minimum. My query is, would it be best to pay some of the gaps (lumps sums) into my national insurance contributions or would it be more beneficial to pay large monthly payments into the new pension scheme from now on? I am 53 and my company pays 2%.

Many thanks

Paul_Herring

Be wary of paying for gaps prior to 2016, HMRC will willingly take your money, but you may not get much benefit out of it..

Quick Google results, but may help..


http://www.thisismoney.co.uk/money/pensions/article-3535618/STEVE-WEBB-Buying-ups-paying-missing-NI-boost-state-pension.html

http://www.thisismoney.co.uk/money/pensions/article-3627480/Can-pay-extra-NI-state-pension-155-65-week.html

xylophone

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

mgdavid

Have you obtained a State Pension forecast, if so what did it say?

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

Sallyso

The state pension forecast said I would get 83.60 a week if I worked for another 14 years.

xylophone

For somebody aged 53 you are very short on State Pension.

(Incidentally, are you clear in your mind on the difference between an auto enrolment pension and your state pension?)

Does your state pension forecast show a COPE?

Sallyso

No, I'm not clear about anything to be honest. All I want to do is try and make some kind of provision for when I retire (if I ever can) . I was out of the country for many years (not working) so I am very confused about all the changes. I know that they are two separate pensions (one my company is obliged by law to pay a minimum of 1% and the government will match what I choose to pay) but that is about as much I know. My state pension forecast does not show COPE. Many thanks for your help.

kidmugsy

It might be best to refer to the State Retirement Pension - what used to be called the Old Age Pension - and call the other one your Occupational Pension. The latter should be quite attractive for someone who is 53 because the money becomes available to you at 55 - a comfort in case of emergency.

Sallyso

Thank you kidmugsy. I could put into the occupational pension aprox 300 pounds a month now so perhaps this is the way to go?

AlanP_2

Sallyso wrote: »

No, I'm not clear about anything to be honest. All I want to do is try and make some kind of provision for when I retire (if I ever can) . I was out of the country for many years (not working) so I am very confused about all the changes. I know that they are two separate pensions (one my company is obliged by law to pay a minimum of 1% and the government will match what I choose to pay) but that is about as much I know. My state pension forecast does not show COPE. Many thanks for your help.

The Gov't won't match what you choose to pay in, they will give you tax relief on your contribution so for a basic rate taxpayer 20%.

To get the best help from all on here I would suggest that you provide more information.

Other pensions ( I guess not), other savings, homeowner / mortgage / renting, other half / dependents, income, tax rate, debt etc.

Not trying to be nosy but looking at pension on it's own without considering the overall situation can mean things are missed.

molerat

On the face of it buying missing years will add to your pension. How many years are available to buy, if some of those years part full they could be extremely good value. A full breakdown of what your forecast states would help give a better picture. You have until at least April 2019 to consider the options on those years.