State Pension Shortfall

molerat

So at April 2020 you had £154.93, £20.27 short of the full amount. Going forward you can add 2 years, 21-22 & 22-23, bringing that up to £164.94.  You are then left with a shortfall of £10.26 which can be partly filled by buying 2 missing years post 2016.  It is not worth attempting to make up to the full £175.20 with a 5th year as it will cost around £800 and only give you about 24p per week.  To make up the 4 years needed you can purchase the going forward years which can be paid by monthly direct debit and 2 prior years which has to be paid as a lump sum or purchase as many post 2016 years as are available.

jimpwarsop

molerat said:

So at April 2020 you had £154.93, £20.27 short of the full amount. Going forward you can add 2 years, 21-22 & 22-23, bringing that up to £164.94.  You are then left with a shortfall of £10.26 which can be partly filled by buying 2 missing years post 2016.  It is not worth attempting to make up to the full £175.20 with a 5th year as it will cost around £800 and only give you about 24p per week.  To make up the 4 years needed you can purchase the going forward years which can be paid by monthly direct debit and 2 prior years which has to be paid as a lump sum or purchase as many post 2016 years as are available.

Hi Molerat, can you give a nod to my situation please?

SRP due next January, current estimate (HMRC) £138.20, possible maximum  £163.43

Cost to buy five years (from HMRC site) £3913

Pension rises by £25.03 a week, or £20.02 after tax, breakeven after 3.76 years.

TIA.

Branchman

TVAS said:

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. 

TVAS:  I have worked since I was 16 and have never signed on in all my 49 years of working, even when I was made redundant and out of work for 3 months.  So your comment about wanting something for nothing is offensive.  My NI record on the Gov website states I have paid full contributions for 49 years and as far a posh DB, god knows what you are on about, also if I am unable to claim my pension until I’m 66 then it should be my decision to retire early and not be forced into, especially when it affects my pension.  Tell me how fair is that.

Dazed_and_C0nfused

Early in the new tax year you should be able to check your Personal Tax Account and see what the shortfall of National Insurance for 2020:21 is and then you can arrange to pay this and get the additional £5.01/week.

The higher your earnings in the two months you worked this tax year the less you should have to pay.

You should also find that your forecast has been updated for the annual inflation increase (2.5%?) and that additional years NIC is actually going to be worth £5.13 (£179.60 ÷ 35).