State pension and NI contribution years

meat_n2_reg

Hello

Looking online at my NI contributions I currently have  34 years of NI contributions

However when I look at pension calculator it says that I need to contribute another 3 years Ni to get full state pension ?

Thought that needed 35 years NI contributions for full pension ?

regards Steve

xylophone

You are part of the transition arrangement as you had contribution years pre new state pension.
See page 5 here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

grima2017

A query roughly along the same lines! My state pension retirement date is May this year. Looking at the gov.uk site it forecasts my pension at £153.30pw. However, it then says that I need to contribute NI to reach my forecast and the estimate based on my National Insurance record up to 5 April 2021 is £148.07pw. Going to my NI record it states that I have 43 years of full contribution, 1 year to contribute before 5 April 2022 and 6 years when I didn't contribute enough. As a teacher I did contract out and have been receiving that pension since May 2016. Where can I go to get a definitive answer to this? Is it as simple as paying in some more NI? 

Dazed_and_C0nfused

grima2017 said:

A query roughly along the same lines! My state pension retirement date is May this year. Looking at the gov.uk site it forecasts my pension at £153.30pw. However, it then says that I need to contribute NI to reach my forecast and the estimate based on my National Insurance record up to 5 April 2021 is £148.07pw. Going to my NI record it states that I have 43 years of full contribution, 1 year to contribute before 5 April 2022 and 6 years when I didn't contribute enough. As a teacher I did contract out and have been receiving that pension since May 2016. Where can I go to get a definitive answer to this? Is it as simple as paying in some more NI? 

Sounds like paying c£800 for 2021:22 would be a great investment, getting back £5.13/week from State Pension age for the rest of your life.

Which 6 years didn't you contribute enough?

p00hsticks

grima2017 said:

Is it as simple as paying in some more NI? 

Probably, yes. As you've been contracted out for much of your career, and with at least 35 NI years at that point, it's pretty certain are that when your 'starting amount' (the higher of the two amounts calculated under the old and new rules)  was determined on the introduction of the new State Pension in April 2016, the old rules 'basic state pension' (then £119.30, now risen to £137.50) came out on top. Any NI year subsequent to that would increase that amount by 1/35th of the new State Pension amount until you reach the maximum allowed (currently £179.60).

So if those missing years are from 2016-17 onwards (pre-2016 years are unlikely to increase your forecast), then as Dazed_and_Confused says, it'll be very good value to make them up. You can contact the Future Pension Centre if you want them to confirm which years will benefit you. and then it's a case of getting onto HMRC to make the payments.  

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

https://www.gov.uk/pay-voluntary-class-3-national-insurance

There are ways to pay less NI (if you are self employed you can pay Class 2 rather than Class 3) or to get NI credits (the most common being if you are child minding grandchildren so that their parents can work or are on certain benefits)

Royal London have produced a very good guide on topping up your state pension - googling 'Royal London State Pension Guide' shoudl take you to it.

molerat

grima2017 said:

A query roughly along the same lines! My state pension retirement date is May this year. Looking at the gov.uk site it forecasts my pension at £153.30pw. However, it then says that I need to contribute NI to reach my forecast and the estimate based on my National Insurance record up to 5 April 2021 is £148.07pw. Going to my NI record it states that I have 43 years of full contribution, 1 year to contribute before 5 April 2022 and 6 years when I didn't contribute enough. As a teacher I did contract out and have been receiving that pension since May 2016. Where can I go to get a definitive answer to this? Is it as simple as paying in some more NI? 

There will be another figure on the forecast stating the most you can achieve, that shows your full options.  Looking at your figures it seems you are unlikely to reach the full £179.60 but could get very close buying 6 years - assuming 16-17-18-19-20-21-22 are all available - at a cost of around £4800.