NI contributions

Nanucleo

Thanks, perhaps that’s why the advice to contact the helpline that you cannot get through to, before you do anything.

For several hours over the last 2 days have been trying to get through using two phones and an iPad at the same time, and after listening to all the guff, you get the engaged tone.

p00hsticks

Nanucleo said:

Thanks, perhaps that’s why the advice to contact the helpline that you cannot get through to, before you do anything.

For several hours over the last 2 days have been trying to get through using two phones and an iPad at the same time, and after listening to all the guff, you get the engaged tone.

I thikn molerat's already told you what the FPC will tell you (at the top of the previous page ?). 

Nanucleo

Just managed to get through to the pensions help line and the following is direct from them which I hope will clarify things for Anyone else. ( once through they are very helpful) 

To get up to the maximum pension I need to purchase 6 years. She stated that each person is different so it’s best to confirm with them.

I am able to purchase years prior to 2016 some of which in my circumstances are cheaper to purchase as they are part complete. The years purchased prior to 2016 do count as qualifying years for pension but not for any other benefits which are related to NI payments.

She went through my accounts and selected the cheapest years to purchase, one of which will only cost me £120. Ended up purchasing 6 years at £3,600 and at current rates will make the break even point after 2.5 years but with expected annual increases over the next 2 years before I draw my pension it will be just under 2 years break even

p00hsticks

Nanucleo said:

Just managed to get through to the pensions help line and the following is direct from them which I hope will clarify things for Anyone else. ( once through they are very helpful) 

To get up to the maximum pension I need to purchase 6 years. She stated that each person is different so it’s best to confirm with them.

I am able to purchase years prior to 2016 some of which in my circumstances are cheaper to purchase as they are part complete. The years purchased prior to 2016 do count as qualifying years for pension but not for any other benefits which are related to NI payments.

She went through my accounts and selected the cheapest years to purchase, one of which will only cost me £120. Ended up purchasing 6 years at £3,600 and at current rates will make the break even point after 2.5 years but with expected annual increases over the next 2 years before I draw my pension it will be just under 2 years break even

Thanks for the update - how did you actually make the payment ?
Was she able to take the payment herself (and if so by what method) or did she transfer you through to HMRC to get the 18 digit reference that allows you to make an online fast payment rom your own bank account ? 

Nanucleo

She asked if I wanted to be put through to HMRC which took about 30 seconds. The whole thing was explained again and I was given a reference number and offered the opportunity to pay there and then over the phone or the option of paying via their website using the ref number as long as it was before the cut off dates.  I took the latter offer with the option of either visa or bank transfer into their account which I was provided details of

xylophone

I am able to purchase years prior to 2016 some of which in my circumstances 

Then it would appear that your "starting amount" was based on the new system.

See chart on p6 of the booklet here

https://www.dpf.org.uk/explorer/files/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

You had 31 qualifying years at 6/4/16.

Your starting amount was the higher of

Old System

NI years/30 (max) x £119.30 (Full Basic) + (Additional State Pension - Deduction for Contracting Out).

£119.30 + (ASP - Deduction for Contracting Out)

New System

{NI years/35 (max) x £155.65 (Full NSP)} - Contracted Out Pension Equivalent.

£137.86 - £12.39 

So your starting amount at 6/4/16 was £125.47.

It has been indexed between 2016 and 2022 under the "triple/double lock".

Following the chart, in your circumstances ( you have gaps you can fill from 2006/07 to 2015/16)

you are able to  improve your forecast up to (but not in excess of) a full NSP.

molerat

Nanucleo said:

Just managed to get through to the pensions help line and the following is direct from them which I hope will clarify things for Anyone else. ( once through they are very helpful) 

To get up to the maximum pension I need to purchase 6 years. She stated that each person is different so it’s best to confirm with them.

I am able to purchase years prior to 2016 some of which in my circumstances are cheaper to purchase as they are part complete. The years purchased prior to 2016 do count as qualifying years for pension but not for any other benefits which are related to NI payments.

She went through my accounts and selected the cheapest years to purchase, one of which will only cost me £120. Ended up purchasing 6 years at £3,600 and at current rates will make the break even point after 2.5 years but with expected annual increases over the next 2 years before I draw my pension it will be just under 2 years break even

How much will your pension be ?  As I forecast earlier, from the figures you quoted it cannot be £185.15 for the 6 years

Nanucleo

It was £185 something. Not going to argue over a few pence.

The main thing was being able to purchase years prior to 2016 to become qualifying years because some of those were cheaper. 

molerat

Nanucleo said:

It was £185 something 

£184.84 ?

Nanucleo

No £185 something but as I say, not arguing over a few pence. Six years will be purchased 5 of which will be prior to 2016 and one after equal max pension whatever that currently is.

Thanks for all the help but would suggest anyone interested in buying additional years to be patient with the help line. Even when I got through was on hold for an hour.