Wife much younger than me has pension forcast that show shortfall

phonefax

I am 78 years of age my wife is 58 years of age and has not worked for about 10 years. She requested a pension forecast in 2020 which stated you can get your state pension on 28 December 2030. Your forecast is £175.20 a week . It then states you need to continue to contribute national insurance to reach your forecast.

Estimate based on your National Insurance record up to 5 April 2019 will be £165.19 per week.

Forecast if you contribute another 2 years before April 2030  £175.20 per week.

This is very confusing and I would be most grateful for any guidance you can give me. How does she contribute when she doesn't work. She has 33 years of contributions. 

Times are hard at the moment but if it is worth paying for 2 years to make up the shortfall how much would she have to pay.

Thank you in advance

MikeJXE

She would need to contribute towards her pension to get the extra £20 a week, you can probably do that on line at DWP 

NannaH

Does she provide care for any Grandchildren, take them to school etc. ?
If so she can claim back to 2011 from the (working tax payer) parent who receives Child Benefit.
It’s called Specified adult childcare credits and has to be claimed every year,  although if she can claim for the last 2 years it will only need to be the once. 

If there are any mods lurking -  Wouldn’t it be helpful to have a sticky at the top with this very useful information?
So many people don’t know about the credits, by being able to claim against my Daughter’s CB,  it will save me well over £5000 in extra NI payments!  

Marcon

See https://www.moneysavingexpert.com/savings/voluntary-national-insurance-contributions/

molerat

phonefax said:

I am 78 years of age my wife is 58 years of age and has not worked for about 10 years. She requested a pension forecast in 2020 which stated you can get your state pension on 28 December 2030. Your forecast is £175.20 a week . It then states you need to continue to contribute national insurance to reach your forecast.

Estimate based on your National Insurance record up to 5 April 2019 will be £165.19 per week.

Forecast if you contribute another 2 years before April 2030  £175.20 per week.

This is very confusing and I would be most grateful for any guidance you can give me. How does she contribute when she doesn't work. She has 33 years of contributions. 

Times are hard at the moment but if it is worth paying for 2 years to make up the shortfall how much would she have to pay.

Thank you in advance

You really need to get an up to date forecast but filling those 2 years will be beneficial.  Does she have access to an on line forecast as that will show her current status and any available NI years ?  It looks like her calculation is under the new scheme so she needs to see if there are any cheap part filled years going back as far 2006-07.  Her current amount is likely now £174.57 and those 2 years will take her to £185.15.

phonefax

NannaH said:

Does she provide care for any Grandchildren, take them to school etc. ?
If so she can claim back to 2011 from the (working tax payer) parent who receives Child Benefit.
It’s called Specified adult childcare credits and has to be claimed every year,  although if she can claim for the last 2 years it will only need to be the once. 

If there are any mods lurking -  Wouldn’t it be helpful to have a sticky at the top with this very useful information?
So many people don’t know about the credits, by being able to claim against my Daughter’s CB,  it will save me well over £5000 in extra NI payments!  

As far as I can understand it ,if my wife claims for this, that will be deducted from her chikl benefit, she is only able to work 3 days a week and has been self employed and has not paid National Insurance. She started self employment as a mobile hairdresser in Feb 2019 just when Covid started, she was unable to claim any furlough, Universal credit told he nothing was available due to her partner earning £25000 per year so she was stuffed. My wife and I had to give her £600 a month for her to pay her share of the house bills. When the Covid restrictions came off the only way she could work is for us to take and collect  isabelle to and from school which we are still doing.

phonefax

molerat said:

phonefax said:

I am 78 years of age my wife is 58 years of age and has not worked for about 10 years. She requested a pension forecast in 2020 which stated you can get your state pension on 28 December 2030. Your forecast is £175.20 a week . It then states you need to continue to contribute national insurance to reach your forecast.

Estimate based on your National Insurance record up to 5 April 2019 will be £165.19 per week.

Forecast if you contribute another 2 years before April 2030  £175.20 per week.

This is very confusing and I would be most grateful for any guidance you can give me. How does she contribute when she doesn't work. She has 33 years of contributions. 

Times are hard at the moment but if it is worth paying for 2 years to make up the shortfall how much would she have to pay.

Thank you in advance

You really need to get an up to date forecast but filling those 2 years will be beneficial.  Does she have access to an on line forecast as that will show her current status and any available NI years ?  It looks like her calculation is under the new scheme so she needs to see if there are any cheap part filled years going back as far 2006-07.  Her current amount is likely now £174.57 and those 2 years will take her to £185.15.

molerat said:

phonefax said:

I am 78 years of age my wife is 58 years of age and has not worked for about 10 years. She requested a pension forecast in 2020 which stated you can get your state pension on 28 December 2030. Your forecast is £175.20 a week . It then states you need to continue to contribute national insurance to reach your forecast.

Estimate based on your National Insurance record up to 5 April 2019 will be £165.19 per week.

Forecast if you contribute another 2 years before April 2030  £175.20 per week.

This is very confusing and I would be most grateful for any guidance you can give me. How does she contribute when she doesn't work. She has 33 years of contributions. 

Times are hard at the moment but if it is worth paying for 2 years to make up the shortfall how much would she have to pay.

Thank you in advance

You really need to get an up to date forecast but filling those 2 years will be beneficial.  Does she have access to an on line forecast as that will show her current status and any available NI years ?  It looks like her calculation is under the new scheme so she needs to see if there are any cheap part filled years going back as far 2006-07.  Her current amount is likely now £174.57 and those 2 years will take her to £185.15.

molerat said:

phonefax said:

I am 78 years of age my wife is 58 years of age and has not worked for about 10 years. She requested a pension forecast in 2020 which stated you can get your state pension on 28 December 2030. Your forecast is £175.20 a week . It then states you need to continue to contribute national insurance to reach your forecast.

Estimate based on your National Insurance record up to 5 April 2019 will be £165.19 per week.

Forecast if you contribute another 2 years before April 2030  £175.20 per week.

This is very confusing and I would be most grateful for any guidance you can give me. How does she contribute when she doesn't work. She has 33 years of contributions. 

Times are hard at the moment but if it is worth paying for 2 years to make up the shortfall how much would she have to pay.

Thank you in advance

You really need to get an up to date forecast but filling those 2 years will be beneficial.  Does she have access to an on line forecast as that will show her current status and any available NI years ?  It looks like her calculation is under the new scheme so she needs to see if there are any cheap part filled years going back as far 2006-07.  Her current amount is likely now £174.57 and those 2 years will take her to £185.15.

molerat said:

phonefax said:

I am 78 years of age my wife is 58 years of age and has not worked for about 10 years. She requested a pension forecast in 2020 which stated you can get your state pension on 28 December 2030. Your forecast is £175.20 a week . It then states you need to continue to contribute national insurance to reach your forecast.

Estimate based on your National Insurance record up to 5 April 2019 will be £165.19 per week.

Forecast if you contribute another 2 years before April 2030  £175.20 per week.

This is very confusing and I would be most grateful for any guidance you can give me. How does she contribute when she doesn't work. She has 33 years of contributions. 

Times are hard at the moment but if it is worth paying for 2 years to make up the shortfall how much would she have to pay.

Thank you in advance

You really need to get an up to date forecast but filling those 2 years will be beneficial.  Does she have access to an on line forecast as that will show her current status and any available NI years ?  It looks like her calculation is under the new scheme so she needs to see if there are any cheap part filled years going back as far 2006-07.  Her current amount is likely now £174.57 and those 2 years will take her to £185.15.

I have just completed an updated forecast today which shows up to date forecast but still have no idea how to pay the 2 years or how much it will be. On each of the years where no NI payment was made it shows hundreds of pounds. I am at my wits end trying my best to understand everything

Audaxer

phonefax said:

molerat said:

phonefax said:

I am 78 years of age my wife is 58 years of age and has not worked for about 10 years. She requested a pension forecast in 2020 which stated you can get your state pension on 28 December 2030. Your forecast is £175.20 a week . It then states you need to continue to contribute national insurance to reach your forecast.

Estimate based on your National Insurance record up to 5 April 2019 will be £165.19 per week.

Forecast if you contribute another 2 years before April 2030  £175.20 per week.

This is very confusing and I would be most grateful for any guidance you can give me. How does she contribute when she doesn't work. She has 33 years of contributions. 

Times are hard at the moment but if it is worth paying for 2 years to make up the shortfall how much would she have to pay.

Thank you in advance

You really need to get an up to date forecast but filling those 2 years will be beneficial.  Does she have access to an on line forecast as that will show her current status and any available NI years ?  It looks like her calculation is under the new scheme so she needs to see if there are any cheap part filled years going back as far 2006-07.  Her current amount is likely now £174.57 and those 2 years will take her to £185.15.

molerat said:

phonefax said:

I am 78 years of age my wife is 58 years of age and has not worked for about 10 years. She requested a pension forecast in 2020 which stated you can get your state pension on 28 December 2030. Your forecast is £175.20 a week . It then states you need to continue to contribute national insurance to reach your forecast.

Estimate based on your National Insurance record up to 5 April 2019 will be £165.19 per week.

Forecast if you contribute another 2 years before April 2030  £175.20 per week.

This is very confusing and I would be most grateful for any guidance you can give me. How does she contribute when she doesn't work. She has 33 years of contributions. 

Times are hard at the moment but if it is worth paying for 2 years to make up the shortfall how much would she have to pay.

Thank you in advance

You really need to get an up to date forecast but filling those 2 years will be beneficial.  Does she have access to an on line forecast as that will show her current status and any available NI years ?  It looks like her calculation is under the new scheme so she needs to see if there are any cheap part filled years going back as far 2006-07.  Her current amount is likely now £174.57 and those 2 years will take her to £185.15.

molerat said:

phonefax said:

I am 78 years of age my wife is 58 years of age and has not worked for about 10 years. She requested a pension forecast in 2020 which stated you can get your state pension on 28 December 2030. Your forecast is £175.20 a week . It then states you need to continue to contribute national insurance to reach your forecast.

Estimate based on your National Insurance record up to 5 April 2019 will be £165.19 per week.

Forecast if you contribute another 2 years before April 2030  £175.20 per week.

This is very confusing and I would be most grateful for any guidance you can give me. How does she contribute when she doesn't work. She has 33 years of contributions. 

Times are hard at the moment but if it is worth paying for 2 years to make up the shortfall how much would she have to pay.

Thank you in advance

You really need to get an up to date forecast but filling those 2 years will be beneficial.  Does she have access to an on line forecast as that will show her current status and any available NI years ?  It looks like her calculation is under the new scheme so she needs to see if there are any cheap part filled years going back as far 2006-07.  Her current amount is likely now £174.57 and those 2 years will take her to £185.15.

molerat said:

phonefax said:

I am 78 years of age my wife is 58 years of age and has not worked for about 10 years. She requested a pension forecast in 2020 which stated you can get your state pension on 28 December 2030. Your forecast is £175.20 a week . It then states you need to continue to contribute national insurance to reach your forecast.

Estimate based on your National Insurance record up to 5 April 2019 will be £165.19 per week.

Forecast if you contribute another 2 years before April 2030  £175.20 per week.

This is very confusing and I would be most grateful for any guidance you can give me. How does she contribute when she doesn't work. She has 33 years of contributions. 

Times are hard at the moment but if it is worth paying for 2 years to make up the shortfall how much would she have to pay.

Thank you in advance

You really need to get an up to date forecast but filling those 2 years will be beneficial.  Does she have access to an on line forecast as that will show her current status and any available NI years ?  It looks like her calculation is under the new scheme so she needs to see if there are any cheap part filled years going back as far 2006-07.  Her current amount is likely now £174.57 and those 2 years will take her to £185.15.

I have just completed an updated forecast today which shows up to date forecast but still have no idea how to pay the 2 years or how much it will be. On each of the years where no NI payment was made it shows hundreds of pounds. I am at my wits end trying my best to understand everything

There should be a line on the forecast that says "Estimate based on your NI record up to 5 April 2022". What amount does it show there?

molerat

I have just completed an updated forecast today which shows up to date forecast but still have no idea how to pay the 2 years or how much it will be. On each of the years where no NI payment was made it shows hundreds of pounds. I am at my wits end trying my best to understand everything

Those amounts shown are what is needed to pay, a full year costs around £800 but pays back in around 3 years or so.

What years are available ?  You need to see if any are part paid so cheaper.

Does her forecast show a COPE amount ?  It will be a click link at the bottom of the forecast front page under contracted out if she was.

You need to speak to FPC for them to confirm what she needs to buy https://www.gov.uk/future-pension-centre

and then contact HMRC to pay https://www.gov.uk/pay-voluntary-class-3-national-insurance

Dazed_and_C0nfused

phonefax said:

NannaH said:

Does she provide care for any Grandchildren, take them to school etc. ?
If so she can claim back to 2011 from the (working tax payer) parent who receives Child Benefit.
It’s called Specified adult childcare credits and has to be claimed every year,  although if she can claim for the last 2 years it will only need to be the once. 

If there are any mods lurking -  Wouldn’t it be helpful to have a sticky at the top with this very useful information?
So many people don’t know about the credits, by being able to claim against my Daughter’s CB,  it will save me well over £5000 in extra NI payments!  

As far as I can understand it ,if my wife claims for this, that will be deducted from her chikl benefit, she is only able to work 3 days a week and has been self employed and has not paid National Insurance. She started self employment as a mobile hairdresser in Feb 2019 just when Covid started, she was unable to claim any furlough, Universal credit told he nothing was available due to her partner earning £25000 per year so she was stuffed. My wife and I had to give her £600 a month for her to pay her share of the house bills. When the Covid restrictions came off the only way she could work is for us to take and collect  isabelle to and from school which we are still doing.

You're getting yourself very confused.

COVID started (in the UK) a year later than that and furlough was a scheme for employees, not the self employed.

I think you mean she has chosen not to pay any NI, someone who is self employed can pay voluntary Class 2 at a vastly reduced rate when compared to Class 3 and this gives a qualifying year for State Pension purposes at minimal cost.

Why didn't she pay Class 2 NI?

xylophone

I think you mean she has chosen not to pay any NI, someone who is self employed can pay voluntary Class 2

I think that the OP is saying that his daughter (mother of Isabelle) is a self employed hairdresser who works part time.

Since Isabelle needs to be taken to/collected from school one assumes that she is under 12.

Presumably therefore the OP's daughter is receiving  Class 3 NI credits ?