To Fill NI Gaps or Not....

Soworried

We have zero knowledge with pensions but have an appointment in June with pension wise but would like to know a bit before we go.

My husband is 7 years short as he had to stop working due to health issues.
We do pay in to a private pension for him and have since 1998 but we believe he'll get more state pension if we top up these 7 years. Is that incorrect?

He was born in 1965

xylophone

What exactly does his state pension forecast say?

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

p00hsticks

Soworried wrote: »

We have zero knowledge with pensions but have an appointment in June with pension wise but would like to know a bit before we go.

First step if you haven't already done so is to get his individual pension forecast; https://www.gov.uk/check-state-pension
It should tell you

a) how much he will get as of now
b) the maximum he could possibly get and
c) how many further years he needs to reach that maximum.

Once you know that, use this guide (or ask on here) to work out what is best to do.
https://www.royallondon.com/siteassets/site-docs/media-centre/good-with-your-money-guides/topping-up-your-state-pension-guide.pdf

Soworried

xylophone wrote: »

What exactly does his state pension forecast say?

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

It says he needs to pay 7 years contribution

molerat

Soworried wrote: »

It says he needs to pay 7 years contribution

That is only a very small part of what it says. Buying the wrong years can be a waste of money and not add any value to his pension.

Soworried

Does this information help ?

You can get your State Pension on July 2032. Your forecast is

£168.60 a week

£733.11 a month, £8,797.31 a year

Your forecast

is not a guarantee and is based on the current law
does not include any increase due to inflation
You need to continue to contribute National Insurance to reach your forecast
Estimate based on your National Insurance record up to 5 April 2018
£138.55 a week
Forecast if you contribute another 7 years before 5 April 2032
£168.60 a week
£168.60 is the most you can get
You cannot improve your forecast any further, unless you choose to put off claiming.

If you’re working you may still need to pay National Insurance contributions until 13 July 2032 as they fund other state benefits and the NHS.

View your National Insurance record
Your forecast may be different if there are any changes to your National Insurance information. There is more about this in the terms and conditions.

You’ve been in a contracted-out pension scheme
Like most people, you were contracted out of part of the State Pension.

Year is not fullView 2017-18 details
2016-17Year is not fullView 2016-17 details
2015-16Year is not fullView 2015-16 details
2014-15Year is not fullView 2014-15 details
2013-14Year is not fullView 2013-14 details
2012-13Year is not fullView 2012-13 details
2011-12Year is not fullView 2011-12 details
2010-11Year is not fullView 2010-11 details
2009-10Year is not fullView 2009-10 details
2008-09Full yearView 2008-09 details
2007-08Full yearView 2007-08 details
2006-07Full yearView 2006-07 details
2005-06Full yearView 2005-06 details
2004-05Full yearView 2004-05 details
2003-04Full yearView 2003-04 details
2002-03Full yearView 2002-03 details
2001-02Full yearView 2001-02 details
2000-01Full yearView 2000-01 details
1999-00Full yearView 1999-00 details
1998-99Full yearView 1998-99 details
1997-98Full yearView 1997-98 details
1996-97Full yearView 1996-97 details
1995-96Full yearView 1995-96 details
1994-95Full yearView 1994-95 details
1993-94Full yearView 1993-94 details
1992-93Full yearView 1992-93 details
1991-92Full yearView 1991-92 details
1990-91Full yearView 1990-91 details
1989-90Year is not fullView 1989-90details
1988-89Full yearView 1988-89 details
1987-88Full yearView 1987-88 details
1986-87Full yearView 1986-87 details
1985-86Full yearView 1985-86 details
1984-85Full yearView 1984-85 details
1983-84Full yearView 1983-84 details
1982-83Full yearView 1982-83 details
1981-82Full yearView 1981-82 details
en
View gaps only

Back

Summary
27

years of full contributions

14

years to contribute before 5 April 2032

10

years when you did not contribute enough

molerat

What is his COPE amount ? - there is a hyperlink in that contracting out statement.


Are any of those 2009-10 to 2015-16 years part filled ?


He can safely purchase 3 of those years but unless they are part filled it may not be worth it - the cut off for getting them at historical cheap prices has passed and they now cost the same as a current year. The seventh year may also not be worth buying as it will only give £1.13 per week pension so the payback period will be quite long.

Soworried

11.77 a week

He's been unable to work since April 2009 and has not made any contributions since March 2009

molerat

2009-10 to 2016-17 cost £780.00 each until April 2020
2017-18 costs £741.00 until April 2020
2018-19 costs £761.80 until April 2021
and then increase to the current in year price.

In my opinion the best approach is to start paying from 2019-20 by DD and make a decision on buying 17-18 and 18-19 before those cut off dates. Bear in mind that these payments are like a reverse life insurance policy - you only get a payout at the end if you are still alive, if you get run over by a bus you get nothing so paying the slight premium by only buying going forward years may be the financially sensible approach.

Soworried

Thank you so much for your advice, you've been very helpful