Unemployed and NI contributions

Sande60

Hi. similar question, I am currently not working and have not since January 2019, I am not looking for a job, but if something I fancied came along that inspired me I would consider returning to work. I am not registered as unemployed and not claiming any benefits, neither is my wife (who has early stage Parkinson's).
I have 41 years paid NI contribution, but on my Gov.Uk account I am showing as owing a payment of £700 for last year.
My questions, Will 41 years NI payments qualify me for full pension in 6 years when I am 66, without further contributions? Do I need to pay the £700 showing on my account? Do I need to register as unemployed?

xylophone

My questions, Will 41 years NI payments qualify me for full pension in 6 years when I am 66, without further contributions? 

Get a pension forecast here https://www.gov.uk/check-state-pension

When you have it, come back and tell us exactly what it says.

Your wife can do likewise.

Sande60

Hi. I have a pension forecast, this shows a potential state pension of £225.67 per week, £11,775 per year, payable in 2026. My concern is that when I look on my National Insurance record, I get the following message. I do not plan to work between now and my retirement in 2026, so these gaps will show every year. will this effect my pension amount going forward, will the above figure start to fall? Prior to the year below I have 41 years full NI contributions.
2018-19 Year is not full 

You did not make any contributions this year

You can make up the shortfall

Pay a voluntary contribution of £761.80 by 5 April 2025. This shortfall may increase after 5 April 2021.

xylophone

Hi. I have a pension forecast, this shows a potential state pension of £225.67 per week, £11,775 per year, payable in 2026. 

Then presumably it also says that you cannot improve your forecast any more?

If so, there is no point in making voluntary payments.

See this https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

which was produced to explain the NSP before it came into effect.

It would appear that your starting amount at 6/4/16 when the NSP was introduced was already higher than a full NSP (£155.65 at that time), presumably because you had not been extensively contracted out during your working life.

If you went back to work now and were earning the appropriate amount, as you would be under SPA, you would still be paying NI but it would not increase your state pension.

See also https://www.gov.uk/new-state-pension/how-its-calculated

Your "starting amount" at 6/4/16 was apportioned between a Full NSP amount (£155.65 at the time)

and a Protected Payment (Starting Amount - £155.65).

 Since 6/4/16 the Full NSP portion has been revalued under the "triple lock" to £175.20 and the balance (Protected Payment)  to £50.47

Sande60

Thank you for your help.