35 years of full NI contributions and state pension?

Dazed_and_C0nfused

You currently need three years. 

But based on what you have posted it seems you will gain two through your current working pattern (current tax year and 2021:22).

That leaves you with one to buy.

molerat

Forget the number of years you have. Once the 2016 starting amount calculation was done, which was based on your individual work and contracting out history, the number of years became irrelevant. The only thing of any importance was the £ figure you were given. 

Your forecast shows that at April 2020 you have £160.85, £14.35 short of the full amount.  By working and contributing for the maximum amount of time available, years 20-21 and 21-22, you can achieve £170.86 - £4.34 short of the full amount.  It then goes on to say that you can improve that forecast to the full £175.20 by purchasing previous unfilled year(s). To get that £4.34 you only need one more year so the £117 one is the best value.  If for some reason you decide not to work the 21-22 year you have the option of buying the remaining more expensive one of those 2 previous unfilled years later on.

nigelbb

SteadyEddie said:

molerat said:

At April 2020 you have £160.85. To get to £175.20 you need 3 more years.  If you are working 20-21 is likely already in the bag so 2 more needed. You definitely need 1 of the back years as you cannot make the full amount without it so buy the cheapest. 21-22 is the next point - will you be working that year ?  If yes then no problems as that will cover the needed year, if no then no real big deal as you will still have that one remaining back year available until beyond the end of 21-22 with only an inflationary increase on the currently shown price so maybe an extra £20. Do you really want to throw away £428 ?

Dazed_and_C0nfused said:

You have misunderstood.

You are earning c£16k.  If that continues this tax year and next you get an extra £10.01 taking you to £170.86.

One additional (post 2016) year adds upto £5.01/£5.01.  But in your case would be limited to £4.34 as you cannot exceed £175.20.

Buying a second year adds nothing as you cannot exceed £175.20

Thank you for the info. and guidance. I realise that I sound as thick as 2 (or maybe 3?) short planks, but, I am seriously missing something fundamental here. From my perspective I have 46 years full contributions. 2 to go, inc. this one (in the bag). 1 more takes me to 48 years full contributions. Seems a poor deal over the new 35. I can't make the 22/23 year full, I'll be too old. (looking on the bright side).
So, you both say I need only 1 more year. How so? Obviously I don't want to spend £428 unnecessarily, especially as I have worked throughout this pandemic, and would choose the smallest amount to pay. What is it I am missing please. Simple terms for a simple mind. Where does it say I only need to 1 year shortfall to meet full SPA criteria?

As others have pointed out assuming you stay in work you will only need to pay for one added year. You are not being cheated by needing 48 years of contributions as for many of those years you must have been in a contracted out pension scheme & in due course will be getting a pension from them in addition to your state pension. If you had earned a full state pension with only 35 years of contributions you would not have that second pension.

Audaxer

SteadyEddie said:

molerat said:

At April 2020 you have £160.85. To get to £175.20 you need 3 more years.  If you are working 20-21 is likely already in the bag so 2 more needed. You definitely need 1 of the back years as you cannot make the full amount without it so buy the cheapest. 21-22 is the next point - will you be working that year ?  If yes then no problems as that will cover the needed year, if no then no real big deal as you will still have that one remaining back year available until beyond the end of 21-22 with only an inflationary increase on the currently shown price so maybe an extra £20. Do you really want to throw away £428 ?

Dazed_and_C0nfused said:

You have misunderstood.

You are earning c£16k.  If that continues this tax year and next you get an extra £10.01 taking you to £170.86.

One additional (post 2016) year adds upto £5.01/£5.01.  But in your case would be limited to £4.34 as you cannot exceed £175.20.

Buying a second year adds nothing as you cannot exceed £175.20

Thank you for the info. and guidance. I realise that I sound as thick as 2 (or maybe 3?) short planks, but, I am seriously missing something fundamental here. From my perspective I have 46 years full contributions. 2 to go, inc. this one (in the bag). 1 more takes me to 48 years full contributions. Seems a poor deal over the new 35. I can't make the 22/23 year full, I'll be too old. (looking on the bright side).
So, you both say I need only 1 more year. How so? Obviously I don't want to spend £428 unnecessarily, especially as I have worked throughout this pandemic, and would choose the smallest amount to pay. What is it I am missing please. Simple terms for a simple mind. Where does it say I only need to 1 year shortfall to meet full SPA criteria?

You are working this tax year 2020/21 so that will add another year on to your forecast. If you work through tax year 2021/22 that will add another year on to your forecast. So in addition to that that you only need to pay one extra year to get to the maximum State Pension, so it's just a case of picking the year with the lowest shortfall year and pay that one.   

Barry_Bear

I sympathize with the posts asking for clarity from the Gov online Pension Forecast website. It can be confusing to read in some places about needing 35 years for a full state pension, but because they keep making changes there are so many ifs and buts. Then there is "contracted out" and other variables. But there are some good people on here who are brilliant at helping to explain things like this which I am thankful for!

SteadyEddie

To each of you who have offered me advice on this thread, thank you. To those reading this thread, in a similar situation, the information regarding myself is correct and the guidance given can be relied on. I  have spoken with the DWP Future Pension team this morning, 0800 731 0175, ascertaining that the situation is correct ie. pay one year's shortfall. I have then spoken to HMRC, 0300 200 3500, regarding the underpayment for one of the years and obtained the necessary reference to make an online payment. I have made the payment and will check in 6 weeks that the payment has been credited to my NI record.
Happy Days! Thank you again to those concerned.