April 2019 - Retirement

DairyQueen

How many full years of contributions will you have achieved by April 2019?

If you had less than 30 years when the new SP starting amounts were implemented (6th April 2016), and if you have any missing years/part-years between 6th April 2006 and 5th April 2016, then it's possible that making voluntary contributions could boost your state pension. I have assumed that you have a complete NI record since 6th April 2016.

You are also able to defer taking your state pension in exchange for an additional 1% for every 9 weeks that you delay (an extra 5.8%-ish for every year that you delay).

As has been mentioned, any NI payments you make in the tax year in which you reach SP age do not count toward the state pension but NI funds more than the state pension.

If you continue working after SP age then you do not pay NI on your earnings.

If you wish to add a little extra to your pension, and you have no relevant gaps to top-up, then perhaps consider working a little longer and deferring your SP. If you work an additional year then (net of inflation increases in the interim) you would receive approx. an extra £466p.a.

((154.81 * 52 = 8050.12) * 5.8%) = £466.91

Plus you would not pay NI for the extra year that you worked between November 2019 and November 2020.

daygrove

Hi DairyQueen,
I have 48 years of Full Year contributions up to the present day (no gaps); with 1 year left (according to the .gov site) but I have been contracted out for a number of years (25) as I was paying into the Local Government Pension Scheme. My Birthday is the 28 April 1954 and my retirement date is the 1st November 2019. I realise that NI contributions are for NHS etc but just posted because I receive a small wage for my P/T job which I pay £50/month for NI contributions and was wondering if I would not be paying this for the 6 months; but looks like from the replies I will be paying until November 2019. I tried to attach a screen shot from the .gov site but wasn't successful in doing so.

[IMG]c:\users\robin\desktop\pension[/IMG]

DairyQueen

daygrove wrote: »

Hi DairyQueen,
I have 48 years of Full Year contributions up to the present day (no gaps); with 1 year left (according to the .gov site) but I have been contracted out for a number of years (25) as I was paying into the Local Government Pension Scheme. My Birthday is the 28 April 1954 and my retirement date is the 1st November 2019. I realise that NI contributions are for NHS etc but just posted because I receive a small wage for my P/T job which I pay £50/month for NI contributions and was wondering if I would not be paying this for the 6 months; but looks like from the replies I will be paying until November 2019. I tried to attach a screen shot from the .gov site but wasn't successful in doing so.

[IMG]c:\users\robin\desktop\pension[/IMG]

A very impressive NI record but, unfortunately, this means that you are unable to add more than the one (i.e. current) tax year indicated on your forecast.

It may be worth considering deferring for that year. Given that you will earn an additional £50p.m. (the NI saving) over that year, plus receive an additional chunk of SP, index-linked for the rest of your life.

Only you can say whether it's worth the delay.

Wishing you a long and happy retirement.

drumtochty

Marcon wrote: »

Why the abuse? OP has asked an innocent question - which is surely what this forum is supposed to be all about? If you can't stop yourself from being gratuitously rude, perhaps not answering at all would be the better bet.

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[FONT=&quot]Who made you the forum milk monitor, telling people not to post if you do not approve of their posts?[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]The poster was having a moan about paying national insurance, that we all have to pay up to state retirement age if we earn over the NI primary threshold. He is obviously up to speed on computing to clearly comment on a forum and like anyone else can web search to find what NI pays for which we know covers more than pension contributions.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I do not consider my reply to be anything less that reminding the poster who, in my opinion is on a "high horse" as he is considering stopping work just because he has to pay NI and gets no further pension contributions.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I have paid NI for the last virtually three years for no extra pension increases, as I for one know that the cost of the NHS and the cost of inflating the state pension has to be paid for and I'm happy to pay my share of the burden unlike the original poster.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I will post where I have something to add whether you like it or not.[/FONT]

DairyQueen

drumtochty wrote: »

.
I have paid NI for the last virtually three years for no extra pension increases, as I for one know that the cost of the NHS and the cost of inflating the state pension has to be paid for and I'm happy to pay my share of the burden unlike the original poster.

The OP has paid NI for 48 years - with no gaps (see most recent post). I would bet that beats your record, and just about everybody else's record. It certainly beats mine. I think OP has certainly paid his/her fair share.

Btw, the total cost of the state pension has not been 'inflated'. It was costed as a zero-sum game as the amount foregone by the (estimated 20 million) losers balances the amount gained by the (estimated 10 million) winners.