Not getting full amount of New State Pension

covid1956

HMRC have confirmed that increase in pension will not be backdated

jem16

covid1956 said:

HMRC have confirmed that increase in pension will not be backdated

That’s already been said way back earlier in the thread. So the sooner you get that part year paid fully, the sooner your pension will increase. 

Just to add that if you buy NI years after receiving state pension, the pension will be increased from the date you paid. It will not be backdated

Dazed_and_C0nfused

covid1956 said:

HMRC have confirmed that increase in pension will not be backdated

You were given the correct answer on the first page of this thread, back on the 13th May.

If you had paid the £301 then you would have already received about £65 of it back in increased pension.

You are just wasting money now.

Mabel2012

covid1956 said:

.........page.

I understand the words and the numbers but do not have the brain power to solve this puzzle. How can an explanation for calculating the state pension be so complicated? 

Marcon

Mabel2012 said:

covid1956 said:

.........page.

I understand the words and the numbers but do not have the brain power to solve this puzzle. How can an explanation for calculating the state pension be so complicated? 

Because the calculation is so complicated....

Spivved1987

I recently paid £127 to make up 2011-12 part year. The dropdown told me that was the amount of additional contribution I could buy back. It was cheaper by several £00 than buying back 2022-23.

Just looked at my forecast. It had no effect, presumably because I had been in a DB scheme prior to 2016. So money down the drain. I had previously paid a few £00 to complete 2016-17, and that DID enhance my State Pension. It's annoying that they don't make it clear in the dropdown when paying an amount will have no effect on your SP - after all, it is the only reason you would be paying any additional contribution!!!

molerat

Unfortunately the NI record is just that, it has nothing to do with your pension directly. It is not HMRC's job to advise on the validity of payments, that is for DWP.  HMRC / DWP are working on something that will do the job but it is quite complex giving a definitive answer either way in a simple drop down box - buying a single year may add nothing but multiple years could - as it is all down to very individual circumstances.  The advice has always been to contact DWP (or ask here as it is fairly straight forward maths given all the details) to ensure that your payments would make a difference.  Are there any other gap years where that money could be transferred to ?

Spivved1987

Spivved1987 said:

I recently paid £127 to make up 2011-12 part year. The dropdown told me that was the amount of additional contribution I could buy back. It was cheaper by several £00 than buying back 2022-23.

Just looked at my forecast. It had no effect, presumably because I had been in a DB scheme prior to 2016. So money down the drain. I had previously paid a few £00 to complete 2016-17, and that DID enhance my State Pension. It's annoying that they don't make it clear in the dropdown when paying an amount will have no effect on your SP - after all, it is the only reason you would be paying any additional contribution!!!

Thus: to my mind this is very misleading. HMRC may well have creamed off a lot of money this way!

molerat

From the web page where you find out how to make contributions

https://www.gov.uk/pay-voluntary-class-3-national-insurance

Before you pay

Check your National Insurance record to find out:

• if you have any gaps
• if you’re eligible to pay voluntary contributions
• how much it will cost

Voluntary contributions do not always increase your State Pension.

If you’re below State Pension age, contact the Future Pension Centre to find out if you’ll benefit from voluntary contributions.

Spivved1987

molerat said:

From the web page where you find out how to make contributions

https://www.gov.uk/pay-voluntary-class-3-national-insurance

Before you pay

Check your National Insurance record to find out:

• if you have any gaps
• if you’re eligible to pay voluntary contributions
• how much it will cost

Voluntary contributions do not always increase your State Pension.

If you’re below State Pension age, contact the Future Pension Centre to find out if you’ll benefit from voluntary contributions.

As I said, I bought back 2016-17 shortfall, so have gone through the process. I knew that there was a potential complication involving DB Scheme, but obviously that passed me by this time round. I take your point that they couldn't put all the minutiae in a dropdown, but it would be quite easy to put a rider along the lines of "Please Note: Making this contribution may not necessarily increase your State Pension Entitlement". As I say, there is probably no other reason for making the voluntary contribution (in 99% of cases) than to increase your SP entitlement.

I am only one year short, but the only post-2016 year I can now buy back would cost me £824 for an extra £2 a week of pension. However, I am interested in your suggestion that they might offset the £127 I have already shelled out. Might explore.