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NI contributions

KBandWFB29
Posts: 8 Forumite

Hi, I am new to the site & this is my first attempt at a post, apologies in advance if I mess up!
I have been able to take early retirement at 59yrs old and have 39yrs full NI contributions but will now have a gap of 8yrs before I get my state pension (current rules mean I receive my state pension at 67yrs old). Is it correct that due to this gap in NI contributions I will not get the full state pension? If so, any advice as to how I can would be appreciated, also any other pension or NI advice to do with this subject would be great, thanks in advance KB
I have been able to take early retirement at 59yrs old and have 39yrs full NI contributions but will now have a gap of 8yrs before I get my state pension (current rules mean I receive my state pension at 67yrs old). Is it correct that due to this gap in NI contributions I will not get the full state pension? If so, any advice as to how I can would be appreciated, also any other pension or NI advice to do with this subject would be great, thanks in advance KB
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You are under transitional rules so the first thing you need to do is check your State Pension forecast to see where you stand.
It's important you read past the headline figure and look at the whole thing as that will show you how much you have accrued to date.
The exact figure is important as each extra post 2016 year adds £5.29/week but is limited to a total of £185.15.
So 1 extra year may add £5.29 but another may only add 1p.2 -
First step is, as above, to get a pension forecast then come back with the numbers and any questions.39 years is of no real relevance but being able to retire at 59 points towards you having a reasonable pension provision which is often at a cost to your new state pension starting amount. With a few years left until SP age you have plenty of opportunity to make a dent in any shortfall. There are many ways of doing this - part time employment, self employment, looking after grandchildren, benefit credits or simply buying class 3 credits.1
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Have a look at this once you've got your forecast: https://www.moneysavingexpert.com/savings/voluntary-national-insurance-contributions/Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!1
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Just tagging on a question in this thread as I'm guessing someone will answer a question that's popped up at social event I went to this morning.
4 guys all between age 57 and 65 and we all checked our state pension forecasts.
It was a bit confusing trying to compare results, but in essence we all had different maximum possible amount and cannot get above the maximum in our forecasts.
We all have about 40 years NI and two were contracted out and we understand why they are short of years and understand how 3 of us short of full state pension can top up by actually working and NI contributions will add a year if it's above than the criteria.
But, all 4 of us had different possible maximum total state pensions we can possibly achieve.
2 of us, the maximum is about £203 per week and 2 of us were £230 & £235.
We know it's not as simple as would like.
Whatever the reasons, the two £203ish would like to attain more years NI to achieve anything like £230/235-ish figure, but apparently it doesn't look possible.
Hopefully someone here will simply and briefly explain why there's the £30 odd difference and why on earth can't the the £203-ish guys top up via any means as their at the maximum NI contributions years.
We are very confused and looking forward to some simple answers?
TIA Roger + 3.0 -
The maximum achievable is £203.85 unless you had already exceeded the maximum, then £155.65, at April 2016 which means that anything contributed post April 2016 has made no difference to that forecast. Those that have exceeded the maximum will have a largish amount of pre 2016 S2P, at April 2016 the now £230 would have been £176.81 made up of £119.30 old basic plus £57.51 S2P
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molerat said:The maximum achievable is £203.85 unless you had already exceeded the maximum, then £155.65, at April 2016 which means that anything contributed post April 2016 has made no difference to that forecast. Those that have exceeded the maximum will have a largish amount of pre 2016 S2P, at April 2016 the now £230 would have been £176.81 made up of £119.30 old basic plus £57.51 S2P
Many people like me may think just do PAYE for 30, 35 or more than 40 years and you will get that maximum possible state pension of the £230/235-zone, but just not the case.
It's a shame they don't just let anyone top up to that maximum £235-zone if they want and can achieve it.
On the plus side 1 of the four of us got interested in pensions about 20 years ago and we have all learned a lot about pensions apart from the UK state pensions it appears, maybe two of us could of topped up before 2016 maybe, but matters not now as all out maximums are now set in concrete apparently.
Cheers Roger.0 -
You could not "top up" your pre 2016 pension, the S2P amount was non contracted out earnings related, you had your "old scheme" amount and they had theirs. Those with the larger state pension will likely not have a "works pension", swings and roundabouts really. And those with the higher SP are currently paying the same NI and not accruing any more pension benefit.
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I'd imagine, overall, the two on the 'lower' amount, will be better off, once they get their DB pension into payment.1
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molerat said:You could not "top up" your pre 2016 pension, the S2P amount was non contracted out earnings related, you had your "old scheme" amount and they had theirs. Those with the larger state pension will likely not have a "works pension", swings and roundabouts really. And those with the higher SP are currently paying the same NI and not accruing any more pension benefit.
Think me more understands now.
Cheers Roger.0
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