Is it worth me making contributions

sheramber

If your are is a Universal Credit area you cannot claim tax credits . Universal Credit replaces tax credits among other benefits.

This may be why they say you need to sign on.

Even if you did not qualify for a payment you would get National Insurance credits.

https://www.gov.uk/universal-credit

margih

But I cannot sign on as I am technically employed by Bexley Council and do not have a P45. I am not actually looking for work as I have got my Bexley Pension.

xylophone

But I cannot sign on as I am technically employed by Bexley Council and do not have a P45. I am not actually looking for work as I have got my Bexley Pension.

You are in receipt of an occupational pension and you work on a casual basis for Bexley Library Service.

You say that you do not earn enough to be credited with NI.

https://www.litrg.org.uk/tax-guides/employed/what-national-insurance-do-i-pay-employee

See

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

concerning voluntary contributions.

margih

It seems I cannot claim any credits for being a low earner. I have asked for a current forecast to see if it makes more sense than the online version. I have paid 44 years and am 61 now I will get my pension when 66, so I think I will wait until closer to that time before making any decisions about the gaps. It is all so confusing !

molerat

The printed version is less clear than the on line version which gives you all the data you need. You need to check what your NI record shows for 2016-17 , any weeks paid ? How much do you earn a year from the job, you may earn enough for credits ?

margih

I do not have a regular wage as I am only casual staff and called in when they are short of staff. last year I earned about £109.00 I have 44 years until 2015/16 then none after as I became a casual employee.
The online version says in big numbers the forecast is 159.55 then underneath in small print says I need to contribute to reach the forecast. Based on my record to 2017 the forecast is £141.90 but if i contribute for another 4 years it will be £159.55.!!! I have paid 44years!!!

xylophone

I have paid 44years!!!

But you have been in a contracted out pension scheme for many/most of those years?

At 5/4/16 a calculation was done under the old and new schemes and you received the higher of the two amounts. This became your starting amount.

Old scheme

Full basic state pension of £119.30+ (SERPS/S2P - Deduction for Contracting out)

New Scheme

Full new state pension of £155.65 - Contracted Out Pension Equivalent.

As you are under State Pension Age you are able to increase your starting amount by contributions or credits up to a full new state pension.

Read

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

margih

I cannot make head nor tail of all of this! I am no good at read advice I read somewhere that if you have paid in for 35 years you will get the full pension. So I think I will have to wait until I am closer to my pension age in 2022 to sort this out as I am just getting very confused now. I do not understand my online forecast at all as it has 2 different amounts on it. The online version says in big numbers the forecast is 159.55 then underneath in small print says I need to contribute to reach the forecast. Based on my record to 2017 the forecast is £141.90 but if i contribute for another 4 years it will be £159.55.!!!

badmemory

This means that your record to 5th April 2017 means that your pension will be £141.90, then for each additional year you contribute you get £4.55 added. 4 years at that rate would add £18.20 which would be £160.10 but the max you can get is 159.55.

Dazed_and_confused

Whilst I think everyone's explanations should have made it clear to the op what the correct position is I do think the way this is presented on your online account would be much clearer if it started with the you are entitled to £141.90 bit and then continued with but if you continue to contribute you can get a maximum of £159.55.