NI Question

mrstoozer

hi all I am really confused with how NI contributions work:

I am from 72 (came from abroad to the UK in 97)
Forecast max (if I contribute another 5y before 2039): 185.15/week 
Estimate based on my NI record: 159.67/week

27y Full Contributions
2y did not contribute enough (2003/2004 & 1996/1997)
17y to contribute before 2039 (when I'll hopefully be 67)

I understand for full SPA you need to contribute 35y
I have so far contributed 27y, but the forecast states that I "need" only extra 5y to reach the max (currently) of 185.15

Is this correct, i.e., contributing 32y will "grant" me the max?

xylophone

35 years applies to those who began their working lives after 6/4/16 - everybody else is in a transition arrangement.

Two calculations were done for you on 6.4.16.

Old rules

NI years/30 x  Full Basic State Pension + (Additional State Pension - (if applicable) Deduction for Contracting Out.

New Rules

(NI years/35 x Full New State Pension) - (if applicable) Contracted Out Pension Equivalent.

Your "starting amount" was the higher of the two.

It was under the amount of a full new state pension so that you were able to improve your position by further contributions or credits up to (but not exceeding) a full NSP.

If you achieve five more full years, then you reach full NSP.

This does not mean that those who achieve full NSP will not be required to make contributions once they arrive at that point - if working and earning the relevant amount NI contributions will still be required.

squirrelpie

"I am from 72 (came from abroad to the UK in 97)"

"27y Full Contributions"

I don't think there are 27 complete years between 1997 and now, I make it 26 at most.

molerat

The 3 16-18 freebies that seem to get thrown in whether you were actually resident / registered at that age or not ?  Cropped up a few time on here.