Not getting full amount of New State Pension

covid1956

molerat said:

covid1956 said:

thanks for the info however the GOV.UK website does state i have "44 qualifying years"  i opted out for a maximum of 4 years, but nowhere on the breakdown does it state that my opt out years do not qualify for the full new state pension.
thanks again for the info, i think if i pay an extra £300+ i will get another year so if ipay up in 18 months time iwould feel the benefit of the  extra fiver a week. At present with the way things are i will need that £300 to pay the energy bills
ta

Wher did you get £300 from ?  Is there a part paid year ?  A full year of class 3 is around £800.  They also are only available for 6 years. 

 Wher did you get £300 from ?  Is there a part paid year ?  A full year of class 3 is around £800.  They also are only available for 6 years.   FIND BELOW TAKEN FROM GOV.UK WEBSITE      

You have contributions from

National Insurance credits: 33 weeks

These may have been added to your record if you were ill/disabled, unemployed, caring for someone full-time or on jury service.

Find out more about gaps in your record and how to check them.

You can make up the shortfall

Pay a voluntary contribution of £301.15 by 5 April 2026. This shortfall may increase after 5 April 2023.         

covid1956

Well doing the maths if the £300 gives me an extra £5 per week £260 per year so after about 16 months i will be better off by just over  £21 per month but will pay an extra £4 per month tax, mm mm they jury is out if this is worth while
thank you all for the info

QrizB

covid1956 said:

Well doing the maths if the £300 gives me an extra £5 per week £260 per year so after about 16 months i will be better off by just over  £21 per month but will pay an extra £4 per month tax, mm mm they jury is out if this is worth while

The jury is really not out on this.

£300 now to get £5 a week, triple-locked, for the rest of your life is an absolute bargain.

Dazed_and_C0nfused

covid1956 said:

Well doing the maths if the £300 gives me an extra £5 per week £260 per year so after about 16 months i will be better off by just over  £21 per month but will pay an extra £4 per month tax, mm mm they jury is out if this is worth while
thank you all for the info

You're not serious?

Audaxer

covid1956 said:

Well doing the maths if the £300 gives me an extra £5 per week £260 per year so after about 16 months i will be better off by just over  £21 per month but will pay an extra £4 per month tax, mm mm they jury is out if this is worth while
thank you all for the info

It is worth it as even after 20% tax you will still get £208 a year extra, so your £300 will be recovered in less than 18 months.

I am paying voluntary contributions of around £800 a year to get just over an extra £5 per week before tax, and that is still worth it as it will be recovered in less than 4 years.

molerat

Even at the full £800 it is a no brainer so at £300 ...... !!

You could always buy an annuity with the £300 and get something like £12 per year - how does that £260 per year look now ?

covid1956

nigelbb said:

Linton said:

It is likely that you were contracted out of SERPs, probably as a member of a DB pension scheme.  Have you got a pension forecast from https://www.gov.uk/check-state-pension ?  If you let us know what it says including anything about "COPE" we should be able to explain more.

Many people believe that if they have 35 years NI they are entitled to a full state pension.  The 35 years only applies if you have spent your entire working life under the post 2016 state pension rules.  Obviously no-one is going to be in that position for another 30 years. Until then SP may be lower or higher than the current standard amount.

Joe Crystal is correct - in the 1970's people were given NI credits from the age of 16-18 whilst in full time education, I think to provide some encouragement to stay at school.

Not just in the 1970s & not just for those in full time education. Right up until 2010 everyone was credited with NI contributions for the tax year in which they reached the age 16 and for the following two tax years. The policy intention of these “Starting Credits” was to ensure that those staying on in education beyond the minimum school leaving age did not lose future benefit entitlement as a result.

mmmm
ok so i might be swayed to pay out £300 but i do have a few questions to ask the DWP
1 As i have reached pension age is it too late to buy an extra year
2 How much will my pension increase if i buy an additional year
3 I left school at 16 but at 20 i went into full time education for 3 years does this qualify for Starting Credits (probably no is the answer)
Giving this a serious rethink thanks to your comments
thanks lads/lasses
covid

Dazed_and_C0nfused

1.  I don't think this has ever been definitively answered on here so it would be good for you to post an update once you have the answer.

2.  Assuming it's post 2016 year you will be making full then it will add the "about £5.00 a week" you referred to.  But a single extra year cannot exceed £5.29/week.

i am about £5.00 a week short of the full state pension. 

covid1956

1.  I don't think this has ever been definitively answered on here so it would be good for you to post an update once you have the answer.   Yes i will once DWP answer my query

2.  Assuming it's post 2016 year you will be making full then it will add the "about £5.00 a week" you referred to.  But a single extra year cannot exceed £5.29/week. Will be calling the pension centre tomorrow to see if they can answer my query.


I hope i can add an extra year and this will be the £5.00, but knowing my luck it will add less than this or as its "The Future Pension Centre" they might not be able to answer my query and will be passed on to another office.---

Thanks to everyone for the help --- the waters do seem a bit muddy
covid

Audaxer

covid1956 said:

1.  I don't think this has ever been definitively answered on here so it would be good for you to post an update once you have the answer.   Yes i will once DWP answer my query

2.  Assuming it's post 2016 year you will be making full then it will add the "about £5.00 a week" you referred to.  But a single extra year cannot exceed £5.29/week. Will be calling the pension centre tomorrow to see if they can answer my query.


I hope i can add an extra year and this will be the £5.00, but knowing my luck it will add less than this or as its "The Future Pension Centre" they might not be able to answer my query and will be passed on to another office.---

Thanks to everyone for the help --- the waters do seem a bit muddy
covid

If the shortfall year is post 2016, I'd be very surprised if you were to get any less than £5 pw extra by paying the £301.15 shortfall. That is assuming you are £5 short of the maximum SP which is currently £185.15 pw. I think the Future Pension Centre is the best place to get clarification.