It's time to start digging up those Squirrelled Nuts!!!!

Suffolk_lass

Sea_Shell wrote: »

We'll both, eventually, get SP's too, but not until 2033 and 2039 (67) ?? We're both a bit short, but currently at approx. £7000 pa (we'll probably make them up much nearer the time.) So in about 20 years time we'll have £22,300 pa in todays money.

Not sure if you are aware of a couple of things in terms of making up your SPs:

• Your State pension forecast counts the past but projects full payment between the date of the forecast and the end of the contribution year before you reach SPA
  
• Since April 19 the rate you pay for previous years is the rate payable in the year you are paying, no longer the year you are paying for
  
• You can only go back up to 6 years
  
• There are two ways of buying the extra years with voluntary contributions - Class 3 (default) currently £780 for the 2019-20 contribution year (£15pw) or Class 2 for low-earning self employed who don't pay through their SA tax return - there is a list of occupations at this link. I have to say exam invigilator appeals to me - the rate for Class 2 is £2.50 a week (£130) in the current year.
  
• Your forecast on Gov.uk will tell you how many years you have so far

It is under discussion over here as my 'opted out of SERPS" years in my DB pension before 2016 mean I cannot get a full New State Pension and I have four years for which I could pay, resulting in over £4 per week for each year I buy - so for 4 years payment I could uplift it by over £17 a week - so do I do some self employed work, pay tax (0 tax allowance left) and C2 NI Conts or do I pay C3 £780 this year and whatever the going rate is for the next 3?

nigelbb

Suffolk_lass wrote: »

Not sure if you are aware of a couple of things in terms of making up your SPs:

• Your State pension forecast counts the past but projects full payment between the date of the forecast and the end of the contribution year before you reach SPA
  
• Since April 19 the rate you pay for previous years is the rate payable in the year you are paying, no longer the year you are paying for
  
• You can only go back up to 6 years
  
• There are two ways of buying the extra years with voluntary contributions - Class 3 (default) currently £780 for the 2019-20 contribution year (£15pw) or Class 2 for low-earning self employed who don't pay through their SA tax return - there is a list of occupations at this link. I have to say exam invigilator appeals to me - the rate for Class 2 is £2.50 a week (£130) in the current year.
  
• Your forecast on Gov.uk will tell you how many years you have so far

It is under discussion over here as my 'opted out of SERPS" years in my DB pension before 2016 mean I cannot get a full New State Pension and I have four years for which I could pay, resulting in over £4 per week for each year I buy - so for 4 years payment I could uplift it by over £17 a week - so do I do some self employed work, pay tax (0 tax allowance left) and C2 NI Conts or do I pay C3 £780 this year and whatever the going rate is for the next 3?

If you work overseas you are also eligible to pay Class 2 NI contributions.

shinytop

Suffolk_lass wrote: »

If you are serious about this a number of cargo ships offer accommodation and there are worse ways to explore the world - particularly on some of the more interesting routes.

OK there are no DJs and posh frocks involved but it appeals to me more than being on a vessel with 3000 passengers :eek:

I didn't know that, might have a look into it. There are a few routes I'd want to avoid atm though...

MallyGirl

My half brother and his wife did some interesting legs of their 'round the world without flying' grand adventure. They found it a great experience

jamesd

Suffolk_lass wrote: »

It is under discussion over here as my 'opted out of SERPS" years in my DB pension before 2016 mean I cannot get a full New State Pension and I have four years for which I could pay, resulting in over £4 per week for each year I buy - so for 4 years payment I could uplift it by over £17 a week

Just so other people know:

1. a year contracted out still counts as a year towards the state pension because contracting out only contracted out of most of the earnings-related portion
2. there are issues affecting many who were contracted out into a workplace pension but left within the first two years and had their contributions refunded. Often the scheme didn't tell or repay HMRC, made a single payment to HMRC without giving details of individuals it was for or HMRC themselves got it wrong. It can take a lot of chasing to fix this.

Because the year still counts it takes much more than just being contracted out to get less than the maximum single tier state pension. Usually it'll be people who also weren't employed or who worked abroad for many years. Or women who paid the reduced rate, perhaps.

Chasing gaps and then maybe buying extra years can be lucrative!

JoeEngland

shinytop wrote: »

I didn't know that, might have a look into it. There are a few routes I'd want to avoid atm though...

The strait of Hormuz might be exciting in the wrong kind of way

Sea_Shell

Whilst having a clear out of my IT stuff in our study, I came across an old CD marked "finance".

Having loaded this CD up, its got spreadsheets of our earnings, savings and spending, going back to 2008!!! I'd forgotten all about it, as didn't think we'd kept it (new laptop in 2012).

Having had a quick look, it makes for interesting reading (for us). So I'll have to analyse the data as it's not quite in the format that I have now perfected over the intervening years. What were we doing pre MSE days???

shangaijimmy

Sea_Shell wrote: »

What were we doing pre MSE days???

I'd say that we were 'winging it', badly!

Anonymous101

shangaijimmy wrote: »

I'd say that we were 'winging it', badly!

Absolutely!


As well as providing a fantastic resource for information it acts a great sounding board for investing and life perspectives. My Financial Independence and Early Retirement drive was born from comments on these boards so really it has helped shape my life's path.


I find it especially helpful in that it offers a large variety of opinions and perspectives which I would struggle to see if left to my own devices.


Big up the MSE forum!

Suffolk_lass

nigelbb wrote: »

If you work overseas you are also eligible to pay Class 2 NI contributions.

Yes, I think my original post implied only self-employed - the link I posted sets out all the conditions where Class 2 can be paid. You are right about overseas, but only if you go from working in UK to working abroad without a break - so it rules out people who retired early to Spain and now top up their income by doing pool maintenance, for example

jamesd wrote: »

Just so other people know:

1. a year contracted out still counts as a year towards the state pension because contracting out only contracted out of most of the earnings-related portion
2. there are issues affecting many who were contracted out into a workplace pension but left within the first two years and had their contributions refunded. Often the scheme didn't tell or repay HMRC, made a single payment to HMRC without giving details of individuals it was for or HMRC themselves got it wrong. It can take a lot of chasing to fix this.

Because the year still counts it takes much more than just being contracted out to get less than the maximum single tier state pension. Usually it'll be people who also weren't employed or who worked abroad for many years. Or women who paid the reduced rate, perhaps.

Chasing gaps and then maybe buying extra years can be lucrative!

You make a good point. It is such a shame we did not have the ability to check our NI history much earlier. I have an incomplete history because my time at Uni did not count. I would have paid it up had I known I could. My induction suggested we could get credits for FTE but omitted to mention this needed to come straight after school. Mine did not.