State pension and qualifying years

Aristotle67

I currently make class C voluntary NI contributions each year. In total I have 27 years of full contributions made up from paying NI when in employment and my voluntary contributions. I will turn 67 in 2034 which means that there are up to 12 years of voluntary contributions I could make between now and then.

I was under the impression I needed 35 years of full contributions to receive the full state pension. That would mean I need only make a further 8 years' worth of voluntary contributions. However, my state pension forecast on the Government Gateway site says I need to make 10 years of further contributions for the full pension, despite it stating that I have 27 years to date. 

Am I missing something here? I thought I would enquire on the forum before I chase HMRC up over this just in case I am overlooking something. Is the total amount of qualifying years different if a lot of these years consist of voluntary contributions? 

Thank you in anticipation. 

molerat

35 years is only relevant to those starting out after 2016. Those with a pre 2016 record are on a hybrid transitional scheme and at April 2016 you were given the higher of the new or old pensions applicable to your personal situation meaning you may need more or less than 35 to reach the full amount.

What exactly does your forecast show ?

Not just the top line but the up to April 2022 amount as well ?

How many years pre 2016 and post 2016 do you have ?

Does your forecast show you as contracted out with a COPE amount ?

Which financial year do you reach SP ?

calcotti

https://www.gov.uk/new-state-pension/how-its-calculated

Aristotle67

Thank you for taking time to respond, molerat and calcotti. Much obliged.

Calcotti, I had been working from the site to which you linked but could not fathom out the discrepancy. I think Molerat has probably solved the conundrum.

I cannot get into the Gateway website at present but had noted a few figures:
 
Current forecast is £134.38 pw, rising to £185.15 (with full contributions of course).

Post 2016 years will be 5 or 6 meaning that there are 21-22 years pre 2016.

I was contracted out with a COPE amount of £8.90 per week. I currently receive a small occupational pension.

I will reach SP age in the year 2034-35. My birthday is 8 April. Wish I had been 3 days premature! 

calcotti

Aristotle67 said:

I will reach SP age in the year 2034-35. My birthday is 8 April. Wish I had been 3 days premature! 

You are fortunate to be so close to the start of the tax year. People are liable to make NI until their pension age birthday but that partial year before they get to their birthday doesn’t help towards their State Pension.

molerat

£185.15 - £134.38 = £50.77 / £5.29 = 9.6 so 10 years needed.

Your 2016 starting amount would have been around £86 including a small S2P amount. Does 21 years of contributions look right for your pre 2016 work record ?

Do you have any cheap part filled years available after 2006 ?

p00hsticks

Aristotle67 said:

I will reach SP age in the year 2034-35. My birthday is 8 April. Wish I had been 3 days premature! 

Why ? In general state pension terms, being born early in the tax year is beneficial if you are likely to be still working and/or short on NI years, as the tax year in which you reach state pension age doesn't count for state pension entitlement calculation purposes. So being born three days premature would have potentially left you with one whole years less entitlement.....

Band7

I trust you have checked that you are not be eligible for NI credits?

Aristotle67

calcotti said:

Aristotle67 said:

I will reach SP age in the year 2034-35. My birthday is 8 April. Wish I had been 3 days premature! 

You are fortunate to be so close to the start of the tax year. People are liable to make NI until their pension age birthday but that partial year before they get to their birthday doesn’t help towards their State Pension.

p00hsticks said:

Aristotle67 said:

I will reach SP age in the year 2034-35. My birthday is 8 April. Wish I had been 3 days premature! 

Why ? In general state pension terms, being born early in the tax year is beneficial if you are likely to be still working and/or short on NI years, as the tax year in which you reach state pension age doesn't count for state pension entitlement calculation purposes. So being born three days premature would have potentially left you with one whole years less entitlement.....

That was just a flippant comment on my part. My brothers' birthdays are 4 and 6 April. Our parents took the same fortnight's holiday each year!

I see what you are both saying but as I understand it I don't believe it makes any difference to my situation. Once I have completed a further 10 years of voluntary class C contributions I need not make any further payments, and I should reach this point in the tax year 2031-32. But thanks for pointing that out.

Aristotle67

molerat said:

£185.15 - £134.38 = £50.77 / £5.29 = 9.6 so 10 years needed.

Your 2016 starting amount would have been around £86 including a small S2P amount. Does 21 years of contributions look right for your pre 2016 work record ?

Do you have any cheap part filled years available after 2006 ?

Thank you very much for that analysis and explanation, molerat. I understand the situation now.

I know why you ask about the part filled years available after 2006 as between now and April 5 it is possible to pay missed contributions from 2006. I don't, though there were a couple of years when I chose not to make any voluntary contributions. It is tempting to make payment for those missed years at the current class c rate as this increases annually.

I see one year in my record from 33 years ago where I had 51 weeks of contributions which means that is not a full year and those 51 weeks are effectively lost. Not sure how that happened, though it was before I went to university and I was in and out of various jobs. Perhaps that explains it. Too late to do anything about it, of course, so not worth worrying about. 

Aristotle67

Band7 said:

I trust you have checked that you are not be eligible for NI credits?

I could be eligible for NI credits but I would be being dishonest and milking the system; I am not going to do either of those.

For the last 20 years I have been making my living as a professional punter and gave up my career in order to go full-time. As such any earnings from this are not taxable, as such activity does not constitute a trade. I suspect that as far as the Job Centre is concerned I am "out of the system" as it were. I could argue I am looking for work but not in receipt of JSA, which might mean I am eligible for credits, but I would be fibbing! I have done okay from my punting and am happy to make voluntary NI contributions. I have nothing to complain about as through Class C contributions I pay much less in NI than if I was earning. I referred above to missing a couple of years and that was due to lean returns; all pro punters have good years and not so good years.