National Insurance Contributions - Housewife

p00hsticks

Wrath_of_Kain said:

molerat said:

Wrath_of_Kain said:

molerat said:

Do we know what people get if they cannot fulfil the NI 35 year contributions .... is it 60% or prorata or something ?

Those starting out after 2016 get 1/35th per year with nothing for below 10 but those with a prior history get what they had at April 2016, the higher of the old or new schemes which may be more or less than x/35ths, then can make it up post 2016 with 1/35th per year.  Under the old scheme a spouse with no contributions could use the other's contributions to receive some pension with an increase on death but the new scheme requires and individual to contribute to get a pension and anything else is down to the benefits system.

Sorry a wee bit confused on that .... "those with a prior history get what they had at April 2016" that would suggest there is no point making any contributions at all .... maybe just how i am reading it ?

There was a line drawn at April 2016 and a calculation was done to work out entitlement at that date which was given a £ figure worked out as the better of the old or new schemes. It could then be added to from 2016 at the new 1/35ths.  The point of buying the earlier missed contributions is that the 2016 figure will be recalculated taking these contributions into account.

Ah thats clearer thanks .... would all that info/ calucation be available in the forecast ?

The actual calculations done aren;t shown, but from the information on the forecast (current forecast, how many years still to go, what years are missing and the COPE amount, it's possible (at least for some on these boards) to reverse engineer to work out which of the old or new calculation amounts  was higher and the resulting impact of buying pre-2016 years.

calcotti

Wrath_of_Kain said:.

.., i mean having to self-declare when you are PAYE for something you dont actually get. 

My understanding is that if CB is claimed but you ask not to be paid then you don’t have to complete SA retu4n.

Wrath_of_Kain

p00hsticks said:

Wrath_of_Kain said:

molerat said:

Wrath_of_Kain said:

molerat said:

Do we know what people get if they cannot fulfil the NI 35 year contributions .... is it 60% or prorata or something ?

Those starting out after 2016 get 1/35th per year with nothing for below 10 but those with a prior history get what they had at April 2016, the higher of the old or new schemes which may be more or less than x/35ths, then can make it up post 2016 with 1/35th per year.  Under the old scheme a spouse with no contributions could use the other's contributions to receive some pension with an increase on death but the new scheme requires and individual to contribute to get a pension and anything else is down to the benefits system.

Sorry a wee bit confused on that .... "those with a prior history get what they had at April 2016" that would suggest there is no point making any contributions at all .... maybe just how i am reading it ?

There was a line drawn at April 2016 and a calculation was done to work out entitlement at that date which was given a £ figure worked out as the better of the old or new schemes. It could then be added to from 2016 at the new 1/35ths.  The point of buying the earlier missed contributions is that the 2016 figure will be recalculated taking these contributions into account.

Ah thats clearer thanks .... would all that info/ calucation be available in the forecast ?

The actual calculations done aren;t shown, but from the information on the forecast (current forecast, how many years still to go, what years are missing and the COPE amount, it's possible (at least for some on these boards) to reverse engineer to work out which of the old or new calculation amounts  was higher and the resulting impact of buying pre-2016 years.

I will need to for sure ..... great to know this forum is here to help .... just reading elsewhere and had not considered my own situation with my company pension ..... trying to confirm if we were contracted out of SERPS .... pretty sure we were but cant remember

Wrath_of_Kain

calcotti said:

Wrath_of_Kain said:.

.., i mean having to self-declare when you are PAYE for something you dont actually get. 

My understanding is that if CB is claimed but you ask not to be paid then you don’t have to complete SA retu4n.

Thats the problem there was nothing clear about it back then .... and most people walked away from it without being fully informed.

p00hsticks

Wrath_of_Kain said:

p00hsticks said:

Wrath_of_Kain said:

molerat said:

Wrath_of_Kain said:

molerat said:

Do we know what people get if they cannot fulfil the NI 35 year contributions .... is it 60% or prorata or something ?

Those starting out after 2016 get 1/35th per year with nothing for below 10 but those with a prior history get what they had at April 2016, the higher of the old or new schemes which may be more or less than x/35ths, then can make it up post 2016 with 1/35th per year.  Under the old scheme a spouse with no contributions could use the other's contributions to receive some pension with an increase on death but the new scheme requires and individual to contribute to get a pension and anything else is down to the benefits system.

Sorry a wee bit confused on that .... "those with a prior history get what they had at April 2016" that would suggest there is no point making any contributions at all .... maybe just how i am reading it ?

There was a line drawn at April 2016 and a calculation was done to work out entitlement at that date which was given a £ figure worked out as the better of the old or new schemes. It could then be added to from 2016 at the new 1/35ths.  The point of buying the earlier missed contributions is that the 2016 figure will be recalculated taking these contributions into account.

Ah thats clearer thanks .... would all that info/ calucation be available in the forecast ?

The actual calculations done aren;t shown, but from the information on the forecast (current forecast, how many years still to go, what years are missing and the COPE amount, it's possible (at least for some on these boards) to reverse engineer to work out which of the old or new calculation amounts  was higher and the resulting impact of buying pre-2016 years.

I will need to for sure ..... great to know this forum is here to help .... just reading elsewhere and had not considered my own situation with my company pension ..... trying to confirm if we were contracted out of SERPS .... pretty sure we were but cant remember

If you can access your own pension forecast, look to see if there is a COPE amount - if there is that indicates that you were contracted out at some point. Another dead give away is if you have some pre-2016 company pension out there somewhere.

Wrath_of_Kain

p00hsticks said:

Wrath_of_Kain said:

p00hsticks said:

Wrath_of_Kain said:

molerat said:

Wrath_of_Kain said:

molerat said:

Do we know what people get if they cannot fulfil the NI 35 year contributions .... is it 60% or prorata or something ?

Those starting out after 2016 get 1/35th per year with nothing for below 10 but those with a prior history get what they had at April 2016, the higher of the old or new schemes which may be more or less than x/35ths, then can make it up post 2016 with 1/35th per year.  Under the old scheme a spouse with no contributions could use the other's contributions to receive some pension with an increase on death but the new scheme requires and individual to contribute to get a pension and anything else is down to the benefits system.

Sorry a wee bit confused on that .... "those with a prior history get what they had at April 2016" that would suggest there is no point making any contributions at all .... maybe just how i am reading it ?

There was a line drawn at April 2016 and a calculation was done to work out entitlement at that date which was given a £ figure worked out as the better of the old or new schemes. It could then be added to from 2016 at the new 1/35ths.  The point of buying the earlier missed contributions is that the 2016 figure will be recalculated taking these contributions into account.

Ah thats clearer thanks .... would all that info/ calucation be available in the forecast ?

The actual calculations done aren;t shown, but from the information on the forecast (current forecast, how many years still to go, what years are missing and the COPE amount, it's possible (at least for some on these boards) to reverse engineer to work out which of the old or new calculation amounts  was higher and the resulting impact of buying pre-2016 years.

I will need to for sure ..... great to know this forum is here to help .... just reading elsewhere and had not considered my own situation with my company pension ..... trying to confirm if we were contracted out of SERPS .... pretty sure we were but cant remember

If you can access your own pension forecast, look to see if there is a COPE amount - if there is that indicates that you were contracted out at some point. Another dead give away is if you have some pre-2016 company pension out there somewhere.

This is what it says

Estimate based on your National Insurance record up to 5 April 2022

£170.47 a week

Forecast if you contribute another 3 years before 5 April 2040

£185.15 a week

£185.15 is the most you can get

You have:

• 26 years of full contributions
• 18 years to contribute before 5 April 2040
• 7 years when you did not contribute enough

The 7 years I believe a good proportion of that was while University and low paid part-time work. I take it there arent credits for further education periods ?

molerat

You would have received 3 freebies for when you were 16, 17 & 18 but not for uni etc.

p00hsticks

Wrath_of_Kain said:

The 7 years I believe a good proportion of that was while University and low paid part-time work. I take it there arent credits for further education periods ?

No, there aren't.

Until 2010, there were automatic credits for the years you turned 16, 17 and 18. This was intended so as not to discourage people from staying in education until the age of 18 at a time when to fully qualify for a State pension you needed 44 years if male, 39 if female.

They were scrapped in 2010 when the number of years required was reduced to 30 (now increased to 35 for thsoe who started their working lives after 2016, and possibly more or less if you are under transitional rules).

Wrath_of_Kain

Best on that forecast then i have nothing to worry about ? .... got plenty of time to do another 3 years and thats me getting the full state pension then ?

Again I really should have done my homework but I had assumed if I died that my wife would get my state pension but appears that she will only get 50% ?

molerat

Wrath_of_Kain said:

Best on that forecast then i have nothing to worry about ? .... got plenty of time to do another 3 years and thats me getting the full state pension then ?

Again I really should have done my homework but I had assumed if I died that my wife would get my state pension but appears that she will only get 50% ?

She cannot get any of your pension, the new scheme is now based on an individual's contribution.  The only inheritance, which does not apply to you, is of 50% of any amount over the new full pension.