Pension Dilema

Sallyso

Hello there.

Please could you help me.:o
I am 54 and have only paid into my state pension 6 full years. 3 full years from 1980 to 1983 and full years for 2011/2012 - 2016/2017 - 2017 - 2018. The gaps between 2012 to 2015 state that I can pay approx. 1.800 in voluntary contributions. If I pay those gaps I will have 10 years and I plan to continue working until I’m 67. My current forecast is 90 pounds a week if I continue to work until retirement age.
I am currently paying into my Smart Pension 5% (between employer and employee) but would like to add about 13.000 pounds to this pot. I have only contributed 1.864 pounds so far to my Smart Pension. My question is should I put the whole 13.000 into my Smart Pension or should I pay more gaps in my state pension? I can pay voluntary gaps from 2006/2007. I have 20.000 invested in shares. My net salary is 18,684 a year. I really appreciate your help. Many thanks.

Linton

Paying voluntary NI when your pension forecast is below the new State Pension is an extra-ordinarily good deal, much better than paying into any sort of employer or private pension. If you pay a voluntary year you get your money back in 3-4 years extra State Pension. So fill your gaps first and then pay extra into your employers pension.

tacpot12

Paying the voluntary contributions is likely to be the best choice. It would not be the best choice, only if you are in ill health and unlikely to make it to your state retirement age.

Make sure you don't leave it too late to fill any of the gaps that you are now aware of. Put the rest of what you can afford for retirement savings into your Smart pension.