State Pension

MondayMorning

I understand from HMRC that my 41 years of NICs before 6th April 2016, will only be 30 years on that date and therefore only 30/35s of the new state pension.

I am a female who will be 65 this month. My State Pension age is September 2019.
I haven’t worked in the tax years 2016/17 and 2017/8. For 2018/9 I will only be working this month.

I understand that I won’t pay NICs while working because I will be 65? Can I elect to pay NICs for the next 5 tax years to make up the missing 5 years for a full state pension?

[Deleted User]

Hi,


have a read of this, might help.

Mnd

Presumably you have been contracted out for a while (same as my wife) do you know if you have another pension somewhere. (Sorry it doesn't answer your question directly but it is important )

MondayMorning

Yes, I have a private pension that I am claiming now and will have to look at using that money to pay into another pension now that I am returning to to work.


It's the missing 5 years under the new State Pension rules, that I'm looking at trying to pay in to. HMRC staff said I can only carry 30 years over from 6 April 2016, despite having 41 years by that date.

Silvertabby

You can only pay voluntary NI in respect of full financial years before SPA. As you reach SPA in September 2019, the last year you can pay is 2018/2019. If you are paying NI through work, then you will continue to pay until September even though your payments from April to September won't increase your State pension.

You haven't quite got the calculation right - have you obtained a State pension forecast from DWP?

Silvertabby

MondayMorning wrote: »

Yes, I have a private pension that I am claiming now and will have to look at using that money to pay into another pesnion now that I am returning to to work.

It's the missing 5 years under the new state pension rules, that I'm looking at trying to pay in to. HMRC staff said I can only carry 30 years over from 6 April 2016, despite having more than 35 years on that date.

Crossed with my last post.

What DWP are saying is that your State pension entitlement has been calculated using the old rules rather than the new, as that gives you a higher amount.

Forget the single tier pension - your pension will be the old basic State pension of £125 (?) per week plus any SERPS/SP2 you may have qualified for. This means that you will receive no benefit for paying NI pre 2016. In view of your State pension age you will, however, benefit from paying NI for 2016/2017, 2017/2018 and 2018/2019 if you haven't already done so. For each full year your foundation amount State pension (as at April 2016) will be increased by approx £4.50 per week.

I, too, won't get the full single tier pension (unless I pay voluntary NI) because of my contracted out occupational pensions - but the way I look at it is that I'm already getting the difference between my actual State pension and £165 per week with my occupational pensions.

MondayMorning

Silvertabby wrote: »

As you reach SPA in September 2019, the last year you can pay is 2018/2019. If you are paying NI through work, then you will continue to pay until September even though your payments from April to September won't increase your State pension.

Does that mean that I can buy 2019/20 through voluntary payment to end up with 34/35 of the new state pension? Instead of the 33/35 maximum SP I can get because of my age, which means that all my NICs of more than 30 years are lost before April 2016?

Silvertabby wrote: »

You haven't quite got the calculation right - have you obtained a State pension forecast from DWP?

Not recently.

Silvertabby

Then I would get an up to date pension forecast before going any further. Did your last quote give your COPE amount?

Triumph13

If you want the exact numbers, excluding any SERPS/S2P, then if you pay voluntary NICs for 16/17, 17/18 and 18/19 then you will get up to:
Basic SP £125.95
'extra' £14.09 (3 lots of 1/35 x £164.35)
Total = £140.04 pw
It's just a coincidence that that is approx. 30/35 of the new single tier pension.

MondayMorning

Triumph13 wrote: »

If you want the exact numbers, excluding any SERPS/S2P, then if you pay voluntary NICs for 16/17, 17/18 and 18/19 then you will get up to:
Basic SP £125.95
'extra' £14.09 (3 lots of 1/35 x £164.35)
Total = £140.04 pw
It's just a coincidence that that is approx. 30/35 of the new single tier pension.

Thank you.

xylophone

First obtain your state pension forecast.

https://www.gov.uk/check-state-pension

What exactly does it say?