State Pension shortfall

Jinks1956

I’m 3 years short on NI contributions for full state pension in 2022 with a weekly shortfall of £12.80 estimated. Should I make up the 3 years? I have an occupational pension in payment.

molerat

Making up to the full amount is undoubtedly very good value, £795 one off payment - a bit less for 18-19 & 19-20 - for £5.01 per week for life, pays back in 3-4 years depending on your tax situation.  Which years do you have available to pay ?  2 years will get you £10.02, a 3rd will only get £2.78 so will take longer to recoup.

Jinks1956

Thanks for your reply. 18-19 onwards no contributions paid. Retire April 2022.

drumtochty

Yes pay 18/19 and 19/20.say £1,600 in total. Register as Jinks1965 this month as self employed with HMRC. Get a duplicate book and do some dog walking or ironing or car washing say £200 in total . In April 2021 do your tax return and pay voluntary Class 2 NI  for 20/21 of circa £150 and that will get the third year to maximise your state pension.

Jinks1956

Thanks drumtochty. I’m not sure about the car washing  but I’ll definitely pay contributions for two years. Every little helps 😊

bigfer

In a similar position, I assume one uses form CA5603 and just sends it in and HMRC calculates the monthly amount to be taken as a DD? Does it automatically stop once you have the full number of years or do you need to stop it yourself? Sorry to ask but HMRC are not answering questions unless within 6 months of SP. 

drumtochty

To do the self employed thing and remeber the first £1,100 of income from trading is tax free, you must register as self employed with HMRC by early October 2020 then you can pay Class 2 voluntary NI contributions in April when you do your tax return.

Jinks1956

Hi, Now realise that I have 44 years NI fully paid which I think is more than the max requirement, therefore, shortfall in SP must be due to being contracted out. Is there any way I can get full SP?

GunJack

Jinks1956 said:

Hi, Now realise that I have 44 years NI fully paid which I think is more than the max requirement, therefore, shortfall in SP must be due to being contracted out. Is there any way I can get full SP?

Yes, buy three years as you were told earlier in the thread 🙂

EAWJ

I will be two years short of 35 years when I retire May 2021.  That's even though I am currently paying NIC and will continue to do so until May 2021. 

I have been told that I was given 'NI credit years' for 1989-90 until 1997-98 because I was receiving Child Benefit.

I have been told I cannot boost my state pension by buying extra pension years because the gaps are too long ago i.e. 1970s-80s.

I think I am entitled to two 'NI credit years' for years 1987-88 and 1988-89.

I wasn't employed in those two years, but I was entitled to Child Benefit for 1987-88 and 1988-89, but I didn’t know I was, and therefore simply didn’t claim.

I can provide the evidence that I was entitled to Child Benefit for those years.

Does anyone know who I can ask for help, please?

xylophone

What exactly does your State Pension Forecast say?
When do you reach SPA?

Does anyone know who I can ask for help, please?

You might check with the Future Pension Centre.

https://www.gov.uk/future-pension-centre