State pension forecast & weirdness in gaps!

jem16

youth_leader said:

The £800 per month is the cost for the NI contributions I need to make each year.  

It's around £800 for one year of NICs. I don't understand why you think it's £800 per month.

youth_leader

Just off the phone to a nice young man.  As my husband died before reaching pension age, I have a worry it might be my destiny too, I know it's silly.  He said I should buy years from 2016 but I don't need to do it now, a lot of people do it just before they are due to claim.  I'm a born worrier and will do this. 

jem16

xylophone said:

I'm being quoted an average of £800 per month.

You say that you had 37 years at 2010 - do you mean at 2020?

She talked about paying for 10 years so I think she means she had 37 years at 2010 and hasn't worked since.

jem16

youth_leader said:

Just off the phone to a nice young man.  As my husband died before reaching pension age, I have a worry it might be my destiny too, I know it's silly.  He said I should buy years from 2016 but I don't need to do it now, a lot of people do it just before they are due to claim.  I'm a born worrier and will do this. 

So you reach SPA in 2023 so last year you can pay is probably 2021/22. That gives you 6 possible years but only 5 of them should be needed.

Have you checked what we've been saying about cost? Each NI year will cost around £800 - it's not £800 per month. So buying 5 years will cost you roughly £4000.

May I ask when your husband died? If it was before April 2016 you may also be able to inherit some of his additional pension if he had any.

youth_leader

I'm so sorry for having hijacked the thread, and have made a typing error about the cost being £800 per month, I realise it is per year.

I haven't worked since 2010, my husband supported me.  He died in May 2016, and very luckily I benefitted from his company pension scheme.  I've just looked it up and My COPE figure is £40.20.

Thank you very much for all your help.


 

xylophone

May I ask when your husband died? If it was before April 2016 you may also be able to inherit some of his additional pension if he had any.

OP can check the appropriate "scenario" here (noting that NSP was introduced 6/4/16).

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf

jem16

youth_leader said:

I haven't worked since 2010, my husband supported me.  He died in May 2016, and very luckily I benefitted from his company pension scheme.  I've just looked it up and My COPE figure is £40.20.

Then unless your husband had a Protected Payment on his state pension then you won’t inherit anything from that I’m afraid. 

Chances are that there may be nothing anyway if he was contracted out. 

xylophone

My COPE figure is £40.20.

Then at 6/4/16 the amount given by the New State Pension Calculation would have been 

£155.65 (as you had at least the maximum 35 years) - £40.20.     This is  £115.45 (which  was less than even the basic Old State Pension of £119.30 for which you had certainly qualified).

Therefore the Old Rules calculation gave you your starting amount.

As advised by  the DWP, you can buy the 2016/17 and succeeding years up to the tax year in which you reach SPA  (or reach full NSP, whichever is the earlier).

youth_leader

Thank you @xylophone, I'm useless at figures and since my husband died, easily confused.  I'm wondering if I should buy them now - or should I wait until 6 April?

molerat

The price of years are today

2016-17 .. £795.60

2017-18 .. £795.60

2018-19 .. £761.80

2019-20 .. £780.00

£2020-21 .. £795.60 (unlikely you will be able to pay for this current year at the moment)

On 6th April the three years 2016-17 to 2018-19 will increase to £800.80 and increase on 6 April each year.

2019-20 will stay the current price until 5 April 2022 and 2020-21 until 5 April 2023 when they will increase to the price for the year in which they are purchased and then increase each year until they are no longer available at 6 years after the end of the year concerned.

So if you are going to buy a bit at a time then 2018-19 is the best to buy as that is currently cheapest and will increase the most on 6 April.