Help. Doubts on paying voluntary payments for NI

thinfatwhiteduke

molerat wrote: »

You only need to make the required number of contributions to receive the pension at the appropriate time. How you plan what happens before then is all down to you, it is easily doable if you want to make it happen, you don't need to be wealthy.

So at the age of 59/60, if I've completed my 35 years, can I start receiving my pension?

jamesperrett

thinfatwhiteduke wrote: »

So when they say that you need to make 35 years of contribution it's a lie. It's way more than that. Unless you're wealthy and can afford to live for other 6-8 years without working. Impossible.

If you contribute to a private pension you could easily build up enough to allow you to retire early in the intervening years. The earlier you start paying into your own pension the more it is likely to grow.

thinfatwhiteduke

jamesperrett wrote: »

If you contribute to a private pension you could easily build up enough to allow you to retire early in the intervening years. The earlier you start paying into your own pension the more it is likely to grow.

But if I'm poor and I can only afford to pay my NI?

Dazed_and_confused

Currently it will be either 67 or 68 before you can receive the State Pension.

I think probably 68 for you.

It cannot be any earlier but may become later by the time you get to that sort of age.

thinfatwhiteduke

Dazed_and_confused wrote: »

Currently it will be either 67 or 68 before you can receive the State Pension.

I think probably 68 for you.

It cannot be any earlier but may become later by the time you get to that sort of age.

If my forecast says that I can start receiving my pension at 2054. And I have 3 full years of contribution (with 32 more to do) and 5 incomplete years. If I pay for those 5, will it not change the year, let's say to 2049 rather than 2054?

Dazed_and_confused

No. There is nothing* you can do to bring the date it can be paid from forward.

*other than become a politician and change the rules

thinfatwhiteduke

Dazed_and_confused wrote: »

No. There is nothing* you can do to bring the date it can be paid from forward.

*other than become a politician and change the rules

So basically paying for those 5 years is totally unnecessary. It will not improve my situation the slightest.

Dazed_and_confused

It might improve your situation.

If you are unable to earn enough years in the future from working of getting NI credits it could help get the 35 years.

But if won't bring the payment date forward.

snowqueen555

Actually paying up seems to be a long process, took a while to find the right email, then you need to fill out a form either by email for through phone to get an official statement. That is as far as I have gone.

From what I gather there is a contradiction as the government gateway says you can only pay going back around 5 years but if you look at your gov gateway account it says I can pay up for years from 10 years back. So I think depending on your age, if you are young enough can can pay for years more than 5 years old.

I have the option to pay 2008-2009, £110, so seems like a good deal for an extra year, but I feel like I will make enough contributions anyway by the time I am in my 60's.

I have 34 years left to pay 23 years.

Did you have a Government gateway id? You can check your official record online doesn't take long to register.

lisboa84

thinfatwhiteduke wrote: »

I'm 32 (33 this year).
On the the tax.service.gov.uk website it says that I have :
3 years of full contributions
5 years when I did not contribute enough
(Of those 5 years, 3 years show the amount I can pay, and 2 years still have to update informations and see if they count towards my pension).

I'm just getting to grips with the state pension rules myself.
So, if you have 3 years of full contributions, then I assume that those are the 3 entry years granted to you on your 16th, 17th, 18th birthday?

If there are 5 years when you didn't contribute enough, does that mean that you work part-time and don't pay enough national insurance to earn the year through your compulsory contributions?

You're 32, you entered the system on your 16th birthday; you have 3 years in the bank, 5 years optional for you to buy, what's the story with the other 8 years?

thinfatwhiteduke wrote: »

Dazed_and_confused wrote: »

Currently it will be either 67 or 68 before you can receive the State Pension.

I think probably 68 for you.

It cannot be any earlier but may become later by the time you get to that sort of age.

If my forecast says that I can start receiving my pension at 2054. And I have 3 full years of contribution (with 32 more to do) and 5 incomplete years. If I pay for those 5, will it not change the year, let's say to 2049 rather than 2054?

I'm erring on the side of caution. I'm also due to retire in the mid 2050's, and it's such a long time away, I wouldn't be surprised at all if the state pension retirement age by then was 70, and that we need 40 years of contributions to claim the full state pension amount.

(Wikipedia says retirement age will be 69 by 2046, but don't list any credible source from what i can see).

snowqueen555 wrote: »

Actually paying up seems to be a long process, took a while to find the right email, then you need to fill out a form either by email for through phone to get an official statement.

What is the link to the e-mail form you are referring to?
I'm sure reading around different threads and forums, that most people simply checked their gateway account for the missing gaps, and sent a cheque & letter in the post, or paid through their online bank, without sending any forms.

snowqueen555 wrote: »

From what I gather there is a contradiction as the government gateway says you can only pay going back around 5 years but if you look at your gov gateway account it says I can pay up for years from 10 years back. So I think depending on your age, if you are young enough can can pay for years more than 5 years old.

You can back-pay gaps as far as 2006-2007 tax year. (10 years from when the new state pension rules began).
The deadlines are up to 5th April 2019 at the 2006-2007 rates, or up to 5th April 2023 at the rate at the current time.

thinfatwhiteduke wrote: »

Also, it says that from April 2019, the current amount (of each year missing in my record) could increase. So again, isn't in my interest to pay for the gaps before the price becomes much higher?

I'm a little confused by the use of the word 'could' here.
I have a letter which states similar - "if we receive payment after April 2019, the amount may increase".

So if payments after April 2019 could or may increase, that implies that there is a possibility that they won't increase; so under which circumstances would any payment made after April 2019 be at the original rate, and not be at the new higher rate?