Contracted out for total employment history

GunJack

Silvertabby wrote: »

Still can't get my head round the post 2002 SP2 top ups, though - this was intended to help the low paid, even if they were contracted out - but I was only 'low paid' because I chose to work part time.

Nor me, but having been a low-paid Civil Servant untii 2007 I'm not arguing.... this year's NI will give me the max NewSP with 16 years to go to SP age

molerat

And my usual question ......... have you been looking after grandchildren whilst the parent is at work ?

Pollycat

Silvertabby wrote: »

But you don't have 35 full qualifying years for the new single tier pension - so you will receive the old basic State pension instead.


Don't even think about paying for any post age 50/pre 2016 years as that won't affect your pension at all. However, as Triumph says, you would benefit by paying for your full post 2016 years - ie, 2016/17 and 2017/18.

I'm in a similar situation, as I retired at 60 having always been contracted out. In my case, my foundation amount was more than the basic State pension because I have some post 2002 SP2 top ups. However, I have the scope to 'buy' 4 years of post 2016 voluntary NI contributions, which will take me very close to the maximum State pension.

Still can't get my head round the post 2002 SP2 top ups, though - this was intended to help the low paid, even if they were contracted out - but I was only 'low paid' because I chose to work part time.

Re the bit in bold:
my letter says

If you have gaps in your NI contributions for one or more tax years between 2006/2007 and 2015/2016, depending on your circumstances, you may be able to increase the amount of your state pension by paying voluntary NICs

Nothing about 2016/2017 and 2017/2018.

Thanks for all the replies, it's making a bit more sense and I'm going to look into paying NICs for 2016/2017 and 2017/2018 if it's possible.

OH - due to receive his state pension in 2021 is also thinking about that.

molerat wrote: »

And my usual question ......... have you been looking after grandchildren whilst the parent is at work ?

No, I've been enjoying my early retirement.

No grandchildren to look after.

atush

A shame, looking after the little blighters would have given you nics for free

Pollycat

atush wrote: »

A shame, looking after the little blighters would have given you nics for free

I think I'd rather pay the £1500.

Pollycat

Triumph13 wrote: »

You do need to live slightly longer if you are paying tax. 3.74 / 3.78 years for a 20% taxpayer and 4.99 / 5.04 years for anyone paying 40% tax in retirement .

I am paying tax (20%) on my occupational pension but it's still a good deal.


Just curious why my letter from DWP only mentioned 2015/2016, not 2016/2017 & 2017/2018 too but I guess I'll know when I get in touch with them.

atush

Pollycat wrote: »

I think I'd rather pay the £1500.

That is a long list of non breeders in yor thanks column lol.

I have 3 boys in their 20s but no signs of procreation. I told them how much children cost and they say they arent having any lol. So like you am paying voluntary contribs to catch up.

relishy57

You never know when grandchildren may arrive. I have been enjoying my retirement, thinking it could be years before my 2 had any children and I now have 1 grandchild aged 3 months and 1 due in January 19. I will be claiming the NICS from Jan 19 as will be looking after older grandchild from then on for at least 1 day a week. I will have 16/17 and 17/18 years to top up though but will leave until last possible moment.

Pollycat

relishy57 wrote: »

You never know when grandchildren may arrive. I have been enjoying my retirement, thinking it could be years before my 2 had any children and I now have 1 grandchild aged 3 months and 1 due in January 19. I will be claiming the NICS from Jan 19 as will be looking after older grandchild from then on for at least 1 day a week. I will have 16/17 and 17/18 years to top up though but will leave until last possible moment.

Don't hold your breath.
No children = no chance of grandchildren.

Enjoy your baby-sitting duties.

Pollycat

Update:
Have rung DWP, they'll ring me back with figures (may be a week).

Not tremendously impressed with their phone system.
I chose option 3 but was told I needed option 1 (change of circumstances).
I pointed out that my circumstances hadn't changed, I was simply making an enquiry about my state pension.

Hey Ho.

Thanks again to everyone who gave advice.
Will update further.