Another state pension/NI top-up query (sorry!) 15 February at 5:36PM in Pensions, annuities & retirement planning 7 replies 402 views

stupid_question_2

Hi all, OH has *finally* managed to log in to the government gateway and check his state pension forecast (details below), hoping you lovely people will be able to help.

Have not managed to get through on the phone yet.  The main question is whether topping up 2006/07 will add anything, we know there is still time to top up later years but obviously that one would cost less IF it's actually worth buying.

Estimate based on NI record up to 5 April 2022: £144.76 / week

Forecast if you contribute another 8 years before 5 April 2033:  £185.15 / week

You have:

·         26 years of full contributions

·         11 years to contribute before 5 April 2033

·         14 years when you did not contribute enough

2022 to 2023 - Your record for this year is not available yet

2021 to 2022 - Year is not full.  You can make up the shortfall.  Pay a voluntary contribution of £800.80 by 5 April 2028. This shortfall may increase after 5 April 2024.  

2020 to 2021 - Year is not full.  You can make up the shortfall.  Pay a voluntary contribution of £795.60 by 5 April 2027. This shortfall may increase after 5 April 2023.

2019 to 2020 - Full year

2018 to 2019 - Year is not full.  You can make up the shortfall.  Pay a voluntary contribution of £824.20 by 5 April 2025. This shortfall may increase after 5 April 2023.  

(2010-2011 to 2017-2018 inclusive - all not full, shortfall £824.20, same as 2018-2019)

2009 to 2010 - Full year / 2008 to 2009 - Full year / 2007 to 2008 - Full year

2006 to 2007 - Year is not full.  You can make up the shortfall.  Pay a voluntary contribution of £570.60 by 5 April 2023. This shortfall may increase after 5 April 2023.  

Can't see any mention of COPE.

Hope that's enough information!  Thanks.

TadleyBaggie

Is OH likely to be awarded further NI contributions in the next 11 years, if so it may not be worth doing any contributions at all?

molerat

As he has less than 30 pre 2016 years and his starting amount is based on the old calculation (£121.71 old v £115.63 new without any possible COPE deduction) then he can safely buy another 4 to add to his pension.  Any pre 2016 years will add £4.73 each to the current amount.  He has another 11 years to get the 8 years necessary to reach the full amount so up to you to decide if it is worth it.

stupid_question_2

Thanks so much, you've even answered the question I forgot to ask ( i.e. how much buying a pre-2016 year would add; I know for later years it's £5.29)

TadleyBaggie said:

Is OH likely to be awarded further NI contributions in the next 11 years, if so it may not be worth doing any contributions at all?

It's not impossible, but highly unlikely, unfortunately.  And the price of topping-up is only going to go up, so may as well get at least the cheapest year before it's too late.

Does anyone know if you can pay by credit card, or is bank transfer the only option?

calcotti

stupid_question_2 said:

It's not impossible, but highly unlikely, unfortunately. 

Does he claim any benefits that would award him credits?

stupid_question_2

Nah, he doesn't qualify for anything on account of my earnings.  Suppose he might get some more credits in the future, but I figure it won't hurt to get the one year that isn't full price while we can, the rest can wait

calcotti

stupid_question_2 said:

Nah, he doesn't qualify for anything on account of my earnings.  Suppose he might get some more credits in the future, but I figure it won't hurt to get the one year that isn't full price while we can, the rest can wait

I may be reading too much between the lines, but I infer he doesn’t work. If that is the case and it is because he has a health condition that limits his ability to work he could apply for new style ESA. If he doesn’t have an NI record for tax years 2020-21 and 2021-22 he will not be entitled to receive ESA but would still be referred for a Work Capability Assessment and if found to have limited Capability for work would receive Class 1 NI records.

stupid_question_2

You're right that he's not currently working, but it's not through ill-health.  Thanks for taking the time to reply, though - even if not directly applicable to us right now, that's useful information to know.