Nightmare - Pensions and HMRC

linclass

molerat wrote: »

The problem is that HMRC know how much each year is and FPC know which years you need. £761.80 is the full price for 18-19. If you have not got any contributions for that year then that is the correct price.


If you only have 23 pre 2016 years then any 7 available pre 2016 years cannot fail to add value but 17-18 and 18-19 will be cheaper than any empty pre 2016 years.


Again, what about that 82-83. You should have that one filled so you need to firmly ask them why it is not, it could save you £780.


And the looking after grandchildren is a very important question - MrsM saved just under £3K https://www.moneysavingexpert.com/news/2017/01/grandparents-who-help-with-childcare-at-risk-of-missing-out-on-full-state-pension---act-now-to-protect-it/

Sorry molerat, hi. They don't know what they're doing. Gov said I need to pay from only 2006/07 through to 2015/16 and that 2016/17 if full ... IT'S NOT!!!!! But I let them get on with it, then from 17/18 and 18/19.

I've not looked after grandkids at all. Live 150 miles away so that doesn't come into it.

There's another thing to think about which is of concern. I'm one of the '50s woman' that's been in the news recently, and the Government being asked to cough up with what we've missed out on. No one has any idea how this will play out. Do I go ahead and pay the shortfall, or wait and see whether the money the Gov owe me (?) will be over and above the £7k, or even whether it will be ploughed into my NI pot??? Really unsure of what to do.

Brynsam

First world problem. Perhaps if you stopped over-reacting and getting so wound up you'd find it easier to tackle the problem - or at least keep your blood pressure under control!

linclass

Brynsam wrote: »

First world problem. Perhaps if you stopped over-reacting and getting so wound up you'd find it easier to tackle the problem - or at least keep your blood pressure under control!

Fair point, :beer:

Believe me Brynsam, if you'd been on the damn phone for hours, yes HOURS at a time, pushed from pillar to post, (seemingly) passing the buck as the person doesn't have the correct training to answer the query, you'd be hot under the collar too...

msallen

linclass wrote: »

There's another thing to think about which is of concern. I'm one of the '50s woman' that's been in the news recently, and the Government being asked to cough up with what we've missed out on. No one has any idea how this will play out. Do I go ahead and pay the shortfall, or wait and see whether the money the Gov owe me (?) will be over and above the £7k, or even whether it will be ploughed into my NI pot??? Really unsure of what to do.

That's simple. The government don't owe you anything.

OldBeanz

Best time to phone is at 0800hr.

nigelbb

Why waste time on the phone just check online https://www.gov.uk/check-state-pension It clearly shows what years you haven't paid & which you can. It also shows what your maximum pension will be if you buy added years.

linclass

nigelbb wrote: »

Why waste time on the phone just check online https://www.gov.uk/check-state-pension It clearly shows what years you haven't paid & which you can. It also shows what your maximum pension will be if you buy added years.

Hi Nigel, I called Gov first to ask how much I needed to pay up front. they SAID they didn't know I would have to call HMRC. I did so, the bloke I spoke with passed the buck and referred me back to Gov!! HMRC also said to double check the amount of years as I could be paying back more than needed. As it was, the 2018/19 figure was totally different between the 2,

Linton

linclass wrote: »

Thanks, I did so, they (Future Pensions Centre) gave me a TOTALLY different figure for 2018/19 to the figure HMRC gave me. :eek:

HMRC wont know. State Pension belongs to DWP. HMRC administer the collecting of NI. The FPC do know and have access to all your data. Just do what they say.

mgdavid

In this day and age you'd think all this information would be readily available online wouldn't you?


Oh, wait.........

nigelbb wrote: »

Why waste time on the phone just check online https://www.gov.uk/check-state-pension It clearly shows what years you haven't paid & which you can. It also shows what your maximum pension will be if you buy added years.

jamesd

linclass wrote: »

There's another thing to think about which is of concern. I'm one of the '50s woman' that's been in the news recently, and the Government being asked to cough up with what we've missed out on. No one has any idea how this will play out. Do I go ahead and pay the shortfall, or wait and see whether the money the Gov owe me (?) will be over and above the £7k, or even whether it will be ploughed into my NI pot??? Really unsure of what to do.

For you, best to hope that you don't get paid according to 1995 rules.

Back then women would get a basic state pension of 1/39th of its maximum per year that counts. If you have only 23 pre-2016 years then that would get you 23 / 39 * £129.20 = £76.19. Plus some earnings-related bit.

Then the 2007 Pensions Act came along and:
1. cut the number of years for maximum basic state pension to 30, uprating your 23 years to 23 / 30 * £129.20 = £99.05. Still plus earnings-related.
2. introduced NI credits for parents and carers.
3. set the first timetable for the increase in state pension age from 65 to 68.

After that came the 2016 changes that gave the higher of
a. 23 / 30 * £129.20 = 99.05. Still plus earnings-related.
b. 23 / 35 * £168.60 = £110.79 minus something if you were contracted out of the earnings-related bit.

I don't know enough about your record to calculate it exactly but:
A. you might have lost up to six years of £76.19 a week = £23,771.
B. you've gained either:
B1 (£99.05 - £76.19) = £22.86 a week = £1,188.72 a year. Over 22 years = £26,152.
B2 (£110.79 - £76.19) = £34.60 a week = £1,799.20 a year. Over 22 years = £39,582.

I used 22 years because that's the current life expectancy for 66 year old women. Your own could be higher or lower.

The changes have also increased how much you get from buying extra years so once you've done that your gains from the changes to pension rules will be greater.

There are women who don't get more from the changes in 1995 and later. A couple of the biggest groups are:
i. women with a man-like work history who don't benefit from the 39 to 30 to 35 changes. Campaign leaders are mostly in this group.
ii. women with life expectancies too short to benefit more from the higher weekly payments than they lose over the delay in starting.

Hopefully that's given you a better idea of the financial balance of the changes for you.

Try not to worry about the improvements being undone. So many women and men, particularly the less well off, would be badly harmed by going back to 1995's rules that no sensible government will do it. Taking the payment increases without the age changes that allowed them to be made affordably is too expensive to contemplate as well.

If you'd like us to tell you what the right costs for buying more years will be we'll need the full details from the online system. We can't do much more than be sympathetic otherwise.