State Pension

wkt54

Thank you Whizzywoo.

wkt54

Xylophone
If I had made the 35 years contributions, would I be receiving 175?
I think I was 2 years short, but didn't think it would have been that much of a difference.

xylophone

Xylophone
If I had made the 35 years contributions, would I be receiving 175?
I think I was 2 years short, but didn't think it would have been that much of a difference.

£141 a week is quite a way short of a full NSP which is £175.20 a week for 2020-21.

Read https://www.royallondon.com/siteassets/site-docs/media-centre/good-with-your-money-guides/topping-up-your-state-pension-guide.pdf

wkt54

Or anybody.
Just asked Xylonphone as he mentioned making vo;untary contributions.
I had looked at it last year but decided against.
But I didn't think the difference would have been 35 pounds a week.
Thanks

xylophone

But I didn't think the difference would have been 35 pounds a week.

Did you  obtain a state pension forecast post 6/4/2016 to check on your exact position?

p00hsticks

wkt54 said:

Xylophone
If I had made the 35 years contributions, would I be receiving 175?
I think I was 2 years short, but didn't think it would have been that much of a difference.

The '35 years' is only strictly applicable to those whose entire working lives will fall under the new State Pension rules introduced in April 2016. For those of us who straddle both old and new schemes, there are 'transitional' rules which means you may need more or less than 35 years to reach the £175 maximum - and may even be entitled to more.

To determine your individual circumstances you'd need to get a personalised Pension Statement (although note that you can only get one up to 30 days prior to you reaching state pension age, so you'd need to be quick and may already have missed the deadline) https://www.gov.uk/check-state-pension

If you are missing years after 2016 then making voluntary NI contributions or earning NI credits for those years would increase your pension by £5 a week for each year, so it's usually an extremely a worthwhile investment if you can spare the money.

wkt54

I do remember a long time ago I looked up making voluntary contributions and it was quite expensive, so decided against it.
I was missing, I think 2 years,  from 1972 when I was 18.
I do think it said it would increase your pension by 5 pounds a week
But I am happy with getting the 141 a week.
Thanks

jamesd

It's very likely that you'd be ahead in 3 and a bit years if you filled in gaps from 2016 onwards. If you post the detailed records from the online check (might not be available to you now) or phone them to ask which of the years 2016-17, 2017-18, 2018-19 and 2019-20 are not full and the cost to make it full we could work it out for you.

If you phone you could also ask them to confirm that making any more years before 2016 full can't give an increase. Unlikely.

wkt54

Thank you Jamesd
I was 18 in 1972 and retired in 2005.
After that I did not make any more contributions, so I was 2 years short of the 35 required.
A few years ago I looked up about making voluntary payments to make up to 35, but it was expensive.
But it didn't say if you don't you will receive 35 pounds a week less.
I think it said you will receive 5 pounds a week more, so I didn't bother.
Thanks

molerat

It looks like you have been tripped up by not understanding how the new state pension works. 35 years is of no relevance to you as you are covered by the 2016 transitional arrangements and your pension is based on the old system. £141 pension means you need around 7 years to reach the maximum but would not be able to achieve that with post 2016 contributions. By buying the 4 years available for £3133 you would add £20 to that pension. Although voluntary contributions may seem expensive they are excellent value, unbeatable on the open market, and repay in under 4 years after 20% tax. Could you find an inflation linked single life annuity that pays 30% ?