Voluntary State Pension Contributions

Chomeur

It states here https://www.gov.uk/voluntary-national-insurance-contributions 
"Decide if you want to pay voluntary contributions

Voluntary contributions do not always increase your State Pension. Contact the Future Pension Centre to find out if you’ll benefit from voluntary contributions."
Like so many organisations the Future Pension Centre is shirking its responsibilities and blaming Coronavirus for it. They say on their phoneline that they are only helping people within six months of getting their state pension.
My record is:

• 23 years of full contributions
• 16 years to contribute before 5 April 2035
• 12 years when you did not contribute enough

I'm not working or claiming benefits so I would think that I probably do want to make voluntary contributions, don't I? I was told by HMRC a few years ago that contributions would cease to be taken by direct debit and would thence be take through my tax return. But now they have told me that I don't need to file a tax return so as far I can tell I'm not making any contributions at all now.
Thanks

Marcon

Have you obtained a recent state pension forecast - you can do that online in seconds: https://www.gov.uk/check-state-pension

Chomeur said:

I'm not working or claiming benefits so I would think that I probably do want to make voluntary contributions, don't I? I was told by HMRC a few years ago that contributions would cease to be taken by direct debit and would thence be take through my tax return. But now they have told me that I don't need to file a tax return so as far I can tell I'm not making any contributions at all now.

That should help you decide, once you've found out for certain whether or not you have been paying contributions. Your personal tax account might also help.

Chomeur

Yes. It sounds very much as if I should set up voluntary contributions. I'm struggling to see how much they will be or how to set them up on the government site though.

"You can get your State Pension on [     ] 2035. Your forecast is

£175.20 a week

£761.81 a month, £9,141.69 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 2019

£104.01 a week

Forecast if you contribute another 15 years before 5 April 2035

£175.20 a week"

Chomeur

I can't see anything in my tax records but then I don't pay income tax.

Chomeur

For the most recent years it says:
"2019-20Your record for this year is not available yet

2018-19Year is not fullView 2018-19details

We are checking this year to see if it counts towards your pension. We’ll update your record when this is finished, you do not need to do anything.

2017-18Full yearView 2017-18details

You have contributions from

Self-employment: 52 weeks"
They've had 18 months since the end of the 2018-19 tax year so it must be a complicated check that they are carrying out. But I do feel that payments aren't being made. If they are I don't know where they're coming from.

xylophone

Have a look at this.

https://www.royallondon.com/siteassets/site-docs/media-centre/good-with-your-money-guides/gwymg-8-new-state-pension.pdf

Then come back with questions.

Chomeur

xylophone said:

Have a look at this.

https://www.royallondon.com/siteassets/site-docs/media-centre/good-with-your-money-guides/gwymg-8-new-state-pension.pdf

Then come back with questions.

I'm not sure that I need to understand all that detail because in the end that document just refers me back to the government website. And it doesn't go into depth on voluntary contributions. According to this page https://www.pensionsadvisoryservice.org.uk/about-pensions/the-state-pension/voluntary-ni-contributions#:~:text=The%20cost%20depends%20on%20the,for%20Class%202%20voluntary%20NICs the cost is £15.30 a week if I pay Class 3 and £3.05 if I pay Class 2. £15.30 a week for 16 years is about £13K which would be repaid in three years if I get £170/week rather than £100. So it seems clearly worth it. But what are the requirements to pay Class 2 instead of Class 3? It sounds as if I have to have a minimum self-employed income of £6475 per year https://www.gov.uk/self-employed-national-insurance-rates

Chomeur

Pensions Guarantee Credit is not relevant so far as I can see because I would have income from other pensions.

molerat

Compulsory class 2 is for those with self employed earnings above £6475, voluntary class 2 is for self employed with earnings below that who wish to make payments.  If not self employed you are not eligible to pay class 2 and class 3 is available.

Norman_Castle

https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions
Voluntary contributions can be made for incomes below £6475.

Chomeur

Well I am self-employed and my income is below £6475. I don't know if they need me to do anything to prove that I'm self-employed though?