Never ending national insurance payments

Nico60

I have just visited the gov.uk state pension page and it tells me, having paid 46years national insurance I have only got to pay 4 more years before the 5th of April 2025, is anyone else having to pay 50 years NI to get their state pension, I was always under the illusion you paid 45 years for the full state pension?

Ganga

You will pay NI till you are due to reach retirement age ,in my case i was 65 in 2015 but worked on for another year ,did not pay NI after 2015 ,bear in mind your NI payments go to other things as well as your pension.

molerat

What exactly does your forecast show, all the figures.  To need that number of years you likely have a long contracted out history right up to 2016 with a large COPE amount..

Heard many weird numbers misquoted for how many years you need for a "full" pension but 45 is a new one on me.

For the 2016 pension anyone starting their NI history after 2016 needs 35 years for a full new pension.  Anyone with a pre 2016 history is on  a hybrid scheme and  may need more or less than 35 years to receive more or less than the "full" new pension.

Cressida100

Nico60 said:

I have just visited the gov.uk state pension page and it tells me, having paid 46years national insurance I have only got to pay 4 more years before the 5th of April 2025, is anyone else having to pay 50 years NI to get their state pension, I was always under the illusion you paid 45 years for the full state pension?

I have 48 years of full contributions and 2 years to contribute before 5 April 2023 to get the full amount. I was contracted out though.

Audaxer

Nico60 said:

I have just visited the gov.uk state pension page and it tells me, having paid 46years national insurance I have only got to pay 4 more years before the 5th of April 2025, is anyone else having to pay 50 years NI to get their state pension, I was always under the illusion you paid 45 years for the full state pension?

I've got 46 years of full payments, and technically 4 years to pay to get the full amount, but the last year would only increase my weekly pension by around 30 pence, so it's only worth me paying 3 of the remaining years. Each year of voluntary contributions will increase your pension by £5.13 per week, so if 3 additional years will get you near to the maximum, it may not be worth paying the final year.

Nico60

molerat said:

What exactly does your forecast show, all the figures.  To need that number of years you likely have a long contracted out history right up to 2016 with a large COPE amount..

Heard many weird numbers misquoted for how many years you need for a "full" pension but 45 is a new one on me.

For the 2016 pension anyone starting their NI history after 2016 needs 35 years for a full new pension.  Anyone with a pre 2016 history is on  a hybrid scheme and  may need more or less than 35 years to receive more or less than the "full" new pension.

Ahh right, thank you for that just been back on the site and it does mention ‘cope’, so if it tells me the most I can get is £179.60 per week do I need to deduct the ‘cope’ estimate of £82.58 per week or is that total I should receive after they have taken off the £82.58?

As you can most likely tell I am clueless when it comes to pensions. (And probably more besides.)

molerat

COPE was only used to work out your starting amount in 2016, the larger the COPE the lower the "new pension" starting amount although that was limited to no less than you already had under the old scheme.  What you see on your forecast is what you will get providing you comply with the caveats mentioned against those figures.  Your forecast will show 2 or 3 amounts, the amount you are likely to get going forward and the amount accrued at April 2021.

Nico60

molerat said:

COPE was only used to work out your starting amount in 2016, the larger the COPE the lower the "new pension" starting amount although that was limited to no less than you already had under the old scheme.  What you see on your forecast is what you will get providing you comply with the caveats mentioned against those figures.  Your forecast will show 2 or 3 amounts, the amount you are likely to get going forward and the amount accrued at April 2021.

Excellent, thank you for that information.

bostonerimus

I've been paying voluntary Class 2 NI for most of my working life and started out needing 30 years of contributions for the full state pension, then the number was raised to 35 years. My forecast is for 179.60/week and I'm now at 37 years and I keep contributing just incase Rishi moves the goal on me again.

JoeCrystal

bostonerimus said:

I've been paying voluntary Class 2 NI for most of my working life and started out needing 30 years of contributions for the full state pension, then the number was raised to 35 years. My forecast is for 179.60/week and I'm now at 37 years and I keep contributing just incase Rishi moves the goal on me again.

You are a lucky one! How many months of state pension it will take to pay back all the voluntary Class 2 NIs you contributed! 

bostonerimus

JoeCrystal said:

bostonerimus said:

I've been paying voluntary Class 2 NI for most of my working life and started out needing 30 years of contributions for the full state pension, then the number was raised to 35 years. My forecast is for 179.60/week and I'm now at 37 years and I keep contributing just incase Rishi moves the goal on me again.

You are a lucky one! How many months of state pension it will take to pay back all the voluntary Class 2 NIs you contributed! 

Or indeed any business owner paying the ridiculously low Class 2 rate. I figure I'll get my contributions back in around 6 months when my state pension starts. It's another reason I keep paying when I could stop. Rishi should really reform Class 2. I actually wrote to my old MP when I first discovered what I could pay to get a contribution as it seemed silly.