Additional NI contributions if you have full history but were contracted out

Spivved1987

Both my wife and I have 40-41 years of NI contributions, but have some small gaps after 2006. As we were contracted out of SERPS our State Pension forecasts are a little short of the full £185.15 per week (in my case £177 p/w). All of the sainted Martin's advice seems to refer to people buying back NI Contribution years to get them to the qualifying 35 years, but we already have more than 35 years. Will buying up the couple of shortfall years bring us up to the £185 weekly pension ie will moving from a contribution history of 41 to 43 years make any difference?

Sorry if I'm missing something obvious

molerat

35 years is of no relevance to those with a pre 2016 history, you may need more or less than 35 years to reach the full amount.  The most mentioned on here has been 50.

Post up the anonymous details asked below and someone will point you in the right direction, it is all about the minute detail.

Current £.pp amount accrued up to April 2022
Number of pre 2016 NI years full
Number of post 2016 NI years full
Financial year you reach state retirement
Any COPE amount shown
Years which show not full and prices

Spivved1987

I'll do this tomorrow, as my brain hurts now!

Given that the required info is quite easy to pinpoint, I am surprised that MSE hasn't done one of its nice 'ready-reckoners' for this situation, which must affect a lot of people!

molerat

Spivved1987 said:

I'll do this tomorrow, as my brain hurts now!

Given that the required info is quite easy to pinpoint, I am surprised that MSE hasn't done one of its nice 'ready-reckoners' for this situation, which must affect a lot of people!

It is fairly straightforward but not simple.  A lot is about interpreting what the crunched numbers actually mean.

msallen

Spivved1987 said:

Both my wife and I have 40-41 years of NI contributions, but have some small gaps after 2006. As we were contracted out of SERPS our State Pension forecasts are a little short of the full £185.15 per week (in my case £177 p/w). All of the sainted Martin's advice seems to refer to people buying back NI Contribution years to get them to the qualifying 35 years, but we already have more than 35 years. Will buying up the couple of shortfall years bring us up to the £185 weekly pension ie will moving from a contribution history of 41 to 43 years make any difference?

Sorry if I'm missing something obvious

I am absolutely not a fan of "the sainted Martin", but I doubt very much that you have heard/read him saying that as nobody will be drawing a new "35 year NI pension" for about another 28 years.

Spivved1987

msallen said:

Spivved1987 said:

Both my wife and I have 40-41 years of NI contributions, but have some small gaps after 2006. As we were contracted out of SERPS our State Pension forecasts are a little short of the full £185.15 per week (in my case £177 p/w). All of the sainted Martin's advice seems to refer to people buying back NI Contribution years to get them to the qualifying 35 years, but we already have more than 35 years. Will buying up the couple of shortfall years bring us up to the £185 weekly pension ie will moving from a contribution history of 41 to 43 years make any difference?

Sorry if I'm missing something obvious

I am absolutely not a fan of "the sainted Martin", but I doubt very much that you have heard/read him saying that as nobody will be drawing a new "35 year NI pension" for about another 28 years.

Yes, I was probably unduly traducing him!

p00hsticks

msallen said:

Spivved1987 said:

Both my wife and I have 40-41 years of NI contributions, but have some small gaps after 2006. As we were contracted out of SERPS our State Pension forecasts are a little short of the full £185.15 per week (in my case £177 p/w). All of the sainted Martin's advice seems to refer to people buying back NI Contribution years to get them to the qualifying 35 years, but we already have more than 35 years. Will buying up the couple of shortfall years bring us up to the £185 weekly pension ie will moving from a contribution history of 41 to 43 years make any difference?

Sorry if I'm missing something obvious

I am absolutely not a fan of "the sainted Martin", but I doubt very much that you have heard/read him saying that as nobody will be drawing a new "35 year NI pension" for about another 28 years.

I think he used the phrase '35 years-ISH' several times in his recent BBC podcast.  

xylophone

Both my wife and I have 40-41 years of NI contributions, but have some small gaps after 2006. As we were contracted out of SERPS our State Pension forecasts are a little short of the full £185.15 per week (in my case £177 p/w). 

On 6/4/16, two calculations were  done for you and your spouse to establish your "starting amounts" for new state pension.

The starting amount was the higher of your entitlements under old/new rules.

Old Rules

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

New Rules

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

In the case of you and your spouse it is almost certain that your "starting amounts" were given by the old rules calculation.

If you had at least 35 qualifying years at 6/4/16, only contributions  from 6/4/16  to the the tax year before that in which you reach SPA will improve your forecast up to (but not in excess of) a full NSP.

Have a look at the chart on p6 of this booklet produced to coincide with introduction of NSP

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

The Govt produced the following as guidance for the public shortly before introduction of NSP.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

See also

https://www.gov.uk/government/publications/new-state-pension-if-youve-been-contracted-out-of-additional-state-pension/the-new-state-pension-transition-and-contracting-out-fact-sheet

Spivved1987

That's a great response, Xylophone. Really helpful.

Spivved1987

It is mind-blowingly complex, and the Future Pensions Helpline is not responding (phone call either drops out or makes engaged tone then drops out).

My forecast says I need to buy another 2 years to get full SP; both pre and post April 2016 I have part years ie will be cheaper than buying full years. I just don't know which years to choose, and if there is any advantage or disadvantage in choosing pre 2016 over post 2016, and vice versa.

p00hsticks

Spivved1987 said:

It is mind-blowingly complex, and the Future Pensions Helpline is not responding (phone call either drops out or makes engaged tone then drops out).

My forecast says I need to buy another 2 years to get full SP; both pre and post April 2016 I have part years ie will be cheaper than buying full years. I just don't know which years to choose, and if there is any advantage or disadvantage in choosing pre 2016 over post 2016, and vice versa.

The devil is in the deteail as to whether pre-2016 years are useful. 
As molerat has already said, people here will be able to help if you post up the details from your state pension forecast.

• Maximum amount of forecast
• Current amount up to April 2022
• Years you have available going forward until you reach State Pension Age
• Number of full years prior to April 2016
• Number of full years after April 2016
• Years which are not filled and the cost of filling them
• Whether there is a COPE mentioned and if so what the amount is (this will show by clicking a link there is a statement along the lines of ' like many, you have been contracted out.....'.)