Guide discussion: Voluntary national insurance contributions

Dixy_3

Hi. Can anyone help?
I reached State Pension Age in May 23 and took my pernsion. I had finished work in December 21.
My Pension forecast was that I needed a further years NI contributions to qualify for the full SP, due to being previously contracted out.
I managed to get some NI credits for 22/23, but didn't have a full year. The credits weren't applied on my NI record until late October and I was then able to see what was missing and top up the few missing weeks . My NI record now shows it is complete for 22/23.

Does anyone know how long DWP will take to process the increased rate of SP and if it will be back dated to my 66th birthday?
I did write to DWP but haven't had a reply as yet.

Silvertabby

Dixy_3 said:

Hi. Can anyone help?
I reached State Pension Age in May 23 and took my pernsion. I had finished work in December 21.
My Pension forecast was that I needed a further years NI contributions to qualify for the full SP, due to being previously contracted out.
I managed to get some NI credits for 22/23, but didn't have a full year. The credits weren't applied on my NI record until late October and I was then able to see what was missing and top up the few missing weeks . My NI record now shows it is complete for 22/23.

Does anyone know how long DWP will take to process the increased rate of SP and if it will be back dated to my 66th birthday?
I did write to DWP but haven't had a reply as yet.

The increased payment will be backdated to your date of payment, not your 66th birthday.

Unpicking and re-calculating a pension that is already in payment isn't a 5 minute job.  Give it at least 6 months.

Maudsy22

Wife tried to do this online but as she was born in Ireland couldn't provide acceptable proof of birth etc for the criteria.  Spoke to them and said they'd send the stuff 2 months ago.  Recieved nothing. 

Dixy_3

Oddly, I have had a notification today that my pension has been reduced, but that I have paid too little tax, so they have changed my code slightly. I haven't yet had anything from pension service, so I'm awaiting their letter. I was told I needed 1 year to get a full new state pension and topped up 1 year, but they have reduced my pension?

Dazed_and_C0nfused

Dixy_3 said:

Oddly, I have had a notification today that my pension has been reduced, but that I have paid too little tax, so they have changed my code slightly. I haven't yet had anything from pension service, so I'm awaiting their letter. I was told I needed 1 year to get a full new state pension and topped up 1 year, but they have reduced my pension?

You mean DWP have reduced the amount of State Pension they are paying you 🤔

Dixy_3

Correct. Gone from £10,300 to £9,400 approx. Nor had any notification from DWP, presumably in the post.

eastcorkram

Dixy_3 said:

Correct. Gone from £10,300 to £9,400 approx. Nor had any notification from DWP, presumably in the post.

If it wasn't DWP, who informed you about this reduction??

Dixy_3

I got an e mail from HMRC, saying my tax code had changed and went on Gov web site. This said my pension had reduced so they were amending my tax code.

molerat

When did you start receiving your pension ?

When already in payment it is highly unlikely to reduce.  Assuming this is the first year the figure HMRC uses for calculating your tax code is often not the same as you actually receive, they can make up a fudged number to try and ensure the tax collected at the end of year is correct.

Dixy_3

I ws 66 last May, 2023. My Pension forecast prior to age 66 on Gov web site showed I had 49 full years NI contributions, but my pension was due to be slightly (£5 odd a week) below the full SP, due to being contracted out, but it said I could make up the shortfall with additional NI contributions and increase my SP. I stopped work at the end of 2021 due to my Mum being ill. I then signed on for 44 weeks in 2022/3 to get NI credits When HMRC/DWP eventually updated my NI record in Nov 23, I was able to find how many weeks I was short of a.full year and I paid just over £100 to complete my NI record, which now shows 50 full years. I wrote to DWP in December to ask them to update my pernsion to the full rate, which I thought I would now be due,  but it seems they have reduced it? I thought when my tax code was being changed the reason was an increase, not decrease. I will presumably get a letter from DWP to explain. Maybe the original pension was incorrect, but it seems odd.