State Pension Shortfall

Branchman

Because I was unable to work past my 65th birthday due to my employment T&Cs (MOD Fire Service - Civil Servant) and given that my projected state pension payable on my 66th birthday will be £158.59 per week instead of £163.60 because I have not paid any National Insurance for the last 10 months through no fault of my own, is my ex employer responsible for making up the difference.  Your views and comments please.

molerat

No the ex employer is not responsible.  You will be able to make it up with class 3 contributions later.

TVAS

Fault does not come into it. Your contract says you cannot work beyond 65. Thank god because we need some people to leave jobs for the sake of the youngsters who no longer have these posh DB schemes that you are fortunate to have.

Why would your employer be responsible for paying NI conts when you were not working and why would you even ask???????? The whole world seems to want something for nothing. 

The reduced state pension might be because you have paid less the full rate NI conts when you were an active member of these DB schemes so said schemes are paying part of your state pension known as GMP and the balance is your basic state pension takes into account that you paid less than full rate NI conts. 

Linton

Branchman said:

Because I was unable to work past my 65th birthday due to my employment T&Cs (MOD Fire Service - Civil Servant) and given that my projected state pension payable on my 66th birthday will be £158.59 per week instead of £163.60 because I have not paid any National Insurance for the last 10 months through no fault of my own, is my ex employer responsible for making up the difference.  Your views and comments please.

Up to, but not including, the tax year in which you reach State Pension Age you can make voluntary NI contributions at a cost of £15.30/week.  It may sound expensive however it is extremely and unbelivably good value.  Over a year it will cost about £800 assuming you had not paid any NI in that year.  A year's NI will entitle you to £5/week extra State Pension.  So after 3-4 years of receiving SP you will be in profit.

If you talk to the Future Pension Centre (which may be difficult in these Covid times) they will be able to tell you how much NI you need to pay to get a full 65th year.

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

xylophone

 See https://forums.moneysavingexpert.com/discussion/comment/78103163/#Comment_78103163

MACKEM99

I am in the early days of looking into paying for more years.  I did do more than enough years to qualify but almost entirely contracted out.
I retired  3 1/2 years ago just before age 60 and will be able to claim state pension at age 66 - Nov 23. 
I am a little perplexed as it seems you can pay upfront (which I can do) but the figures say "not guaranteed".  
Anyone have any experience of this?
Thanks in advance.

Thrugelmir

MACKEM99 said:

I am a little perplexed as it seems you can pay upfront (which I can do) but the figures say "not guaranteed".  

The cost for future years may yet rise or the rules might be changed. 

MACKEM99

So I could be paying for nothing?  

MACKEM99

First figure £169.95 week in Nov 23 - I understand this would be the figure if I was still working and paying. NI.

Estimate based on NI record to 5 April 2020 - £154.93 wk.

Forecast if contribute until 5 Apr 23 - £169.95 wk.

You have shortfalls in your NI record that you can still and make count towards your SP.

The most you can increase your forecast to is £175.20 wk.

molerat

MACKEM99 said:

So I could be paying for nothing?  

Highly unlikely as long as you only pay for the years that will actually add benefit.

The "not guaranteed" tag purely refers to the fact that the law could change (unlikely) and the figures are subject to confirmation at the time you claim.  Not generally anything to worry about. 

What does your pension forecast show, many on here will sense check the numbers.

MACKEM99

Molerat my reply seems to be above your post?