Help needed re. Retirement please

linclass

xylophone wrote: »

See https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

Have a look at the above but for NSP read £155.65 and for BSP £119.30.

See also

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

Many thanks for these links. I will put aside a day or 2 to wade through these...:cool:

Read this and found (from another contributor) highly interesting:

** If you get paid £113 per week or £5876 per year from one employer and that employer is set up for PAYE and registers you payments then yes you will get a years national insurance contributions to give you another £4.55 a week.**

I too have a part-time job since March 2015, earning roughly £135 p/w. Obviously don't pay tax. So, would I be treated the same as suggested above? I think I need to speak with the accountant....

xylophone

See http://taxaid.org.uk/guides/information/an-introduction-to-income-tax-national-insurance-and-tax-credits/national-insurance/national-insurance-for-employees-and-employers/national-insurance-thresholds with example.



https://www.litrg.org.uk/latest-news/news/170607-new-state-pension-%E2%80%93-did-you-pay-contracted-out-nic

molerat

On the face of it you should be credited with NI, what does your NI record show for 2015-16 and 16-17 ? What does your NI summary state for total years ?

linclass

Morning Molerat, yes - Yr 2015/16 - 'Year is not full, you can make up the shortfall' - I started working the p/t job in March 2015 - and Yr 2016/17 - 'Year is full - you did not make any contributions this year'. So it looks like my employer has paid from 2016/17 but not 2015/16. Unless it's a new law, and didn't com into play until 2016??

Additionally, Yr 20008/09 ' You have contributions from National Insurance credits: 53 week' I signed on for the whole of this year, and was told that although they wouldn't pay me job seekers allowance (too much savings apparently...) I may as well continue signing on as they pay my NI.

Thanks

LHW99

Did you get child benefit for your children?
Would you have been given any "home responsibilities protection"?
https://www.gov.uk/home-responsibilities-protection-hrp

May be worth checking with the helpline, if you did claim the benefit, but its not listed as a credit.

molerat

A critical question right now is the one I asked earlier. What does the NI summary state as to total years. There should also be 3 figures relating to your pension amount in different circumstances. All very important as to the way forward.

linclass

molerat wrote: »

A critical question right now is the one I asked earlier. What does the NI summary state as to total years. That is very important as to the way forward.

Hi molerat,

Forecast states:

22 years full contributions
2 years to contribute before 5th April 2019
14 years when you did not contribute enough.

I stayed at home with 2 children from 1970 to 1981 and the details for all these years state 'Full Year - you did not make any contributions this year'

The 3 figures are:

£109.48 - Forecast if you contribute until 5 April 2019
£100.36 - Estimate based on your National Insurance record up to 5 April 2017
£146.17 - The most you can increase your forecast to.


thanks

molerat

As you have less than 30 years any pre 2016 years available to purchase will add to your pension. You need to look at how many and see how much they will cost.

The flow chart in the Royal London link is very good in your scenario.

molerat

linclass wrote: »

Hi molerat,

Forecast states:

22 years full contributions
2 years to contribute before 5th April 2019
14 years when you did not contribute enough.

I stayed at home with 2 children from 1970 to 1981 and the details for all these years state 'Full Year - you did not make any contributions this year'

The 3 figures are:

£109.48 - Forecast if you contribute until 5 April 2019
£100.36 - Estimate based on your National Insurance record up to 5 April 2017
£146.17 - The most you can increase your forecast to.


thanks

So you currently have £100.36. 2017-18 and 2018-19 will bring that up to £109.48. You can add another £36.69 to that by filling any pre 2016 gaps. You now need to look at what is available to purchase. There may be part years that are very cheap to fill. All the information is there in the forecast. Look hard at 2015-16 as you were working and should have some credits for that. That £36.69 is 9 years. Have you looked after grandchildren since April 2011 whilst the parent was at work and paying class 1 NI, a [STRIKE]very cheap[/STRIKE] free way to get credits. https://www.gov.uk/government/publications/national-insurance-credits-for-adults-who-care-for-a-child-under-12-fact-sheet/specified-adult-childcare-credits-fact-sheet

linclass

molerat wrote: »

As you have less than 30 years any pre 2016 years available to purchase will add to your pension. You need to look at how many and see how much they will cost.

The flow chart in the Royal London link is very good in your scenario.

Thanks molerat. Pre 2016 - but is this ALL years or only 6 years back?