NI Pension voluntary contributions

SteveJW

Just checked my NI wife’s pension forecast
Retirement date is 9th April 2022
Government site showing
Estimate based on contributions up to April 2017 £154.96
Forecast if she contributes another two years before 5th April 2022 £164.35

Currently she works part-time for a local authority, hours vary. Most weeks she doesn’t earn enough to pay contributions. It is very unlikely that she will contribute to a full year before 5th April 2022

Looking at the years she hasn’t paid full contributions. She can make up the short fall by making voluntary contributions for two years; the amounts required are £79.50 and £111.20

If these contributions are made does this take her to the required number of qualifying years, or am I missing something

Thanks in anticipation

xylophone

See

https://www.royallondon.com/global/documents/goodwithyourmoney/topping-up-your-state-pension-guide.pdf

Are you sure that she will not receive credits?

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

What happens if I earn less than the weekly/monthly threshold?

If you have earnings above the lower earnings limit (£116 per week or £503 per month for 2018/19) and below the primary threshold (£162 per week or £702 per month for 2018/19) you will not have to pay any Class 1 NIC. Your NIC record will be credited, however, as though you have paid Class 1 NIC. These are called NIC credits. These may earn you entitlement to contributory benefits and the state pension.

SteveJW

Thanks for the reply

I doubt she will meet the criteria for credits

She works as a casual Passenger Assistant (Helps with the transport of special needs clients)
Only called on to work when there is a shortfall in the availability of permanent staff. Could get a phone call saying a weeks work next week (25hrs), one days work (5hrs) or anything in between.

Also gets rolled up holiday pay, so when schools are on holiday no pay

She has been doing the same job for several years, she has a shortfall for the last seven years and I don’t think anything will change.

It appears a bargain pay £190.70 and get a pension increase of £10 per week

Do I understand things correctly?

Thanks

xylophone

See chart on page 6 of first link above.

It may be that pre 2016 years will not count.

Dazed_and_confused

And what's happening with 2017:18??

Based on other threads on here that year is normally showing up by now.

badmemory

There are other ways of earning credits too going forward. Does she look after grandchildren whilst their parents work for example or I believe carers allowance for a parent maybe.


As Xylophone implied - do make sure if you are paying previous years shortfall that that payment will have the desired effect.

molerat

Dazed_and_confused wrote: »

And what's happening with 2017:18??

Based on other threads on here that year is normally showing up by now.

MrsM's & mine still only up to April 17

Linton

The Future Pensions Centre, https://www.gov.uk/future-pension-centre should be able to advise on what voluntary contributions to make.