National Insurance contributions

Kim68

Hi
please could somebody help me understand the following. I looked online for my pension contributions. it says.
35 years of full contributions.
14 years to contribute before 5 April 2036.
 2 years when you did not contribute enough.

It then says you can contribute £348.70 to the shortfall by April 2023.

Based on  record up to 5th April 2022. you will get £ 185.15 a week, but if i top up £187.48 per week.

What I do not understand is I am still working full time so have met the 35 year threshold already, Do i need to top up, as getting full NI pension (at retirement age)? or will there always be a short fall, even if I work another 10 years?

I have to look into gap, as if not in employment, it was after being made redundant, so would have claimed unemployment benefit for short time, until re-employment.
Thanks Kim

p00hsticks

Kim68 said:

Based on  record up to 5th April 2022. you will get £ 185.15 a week, but if i top up £187.48 per week.

Sorry, but this doesn't make sense to me as I can't think of a situation where buying a voluntary year would increase your forecast to over the current maximum of £185.15. .

Which year(s) are they suggesting you should top up ? 

Forget about the number of years - 35 years is only for those who fall entirely under the new system (i,ee, born this century). You have worked under both and so fall under transitional rules. 

molerat

p00hsticks said:

Kim68 said:

Based on  record up to 5th April 2022. you will get £ 185.15 a week, but if i top up £187.48 per week.

Sorry, but this doesn't make sense to me as I can't think of a situation where buying a voluntary year would increase your forecast to over the current maximum of £185.15. .

Which year(s) are they suggesting you should top up ? 

Forget about the number of years - 35 years is only for those who fall entirely under the new system (i,ee, born this century). You have worked under both and so fall under transitional rules. 

Buying a pre 2016 year with less than 30 already held cannot fail to increase the starting amount.  OP was likely just below the full amount at April 2016 and the first post 2016 contribution has taken it to the max but a another pre 2016 year will void that year and take it just above. Every other year contributed since that first post 2016 one has added nothing.  Likely the confusing statement on the front page with that higher figure about topping up by April 2016 or something.

OP.  You will get the max but topping up that year will add another £2.33.  Whether you think it worth it is up to you. Buying that part full year will pay back gross in 150 weeks once you start drawing your pension.

When do you reach state pension age ?

How many full pre 2016 years do you have ?

My workings

OP had starting amount of £153.75 with 29 years, £115.32 basic + £38.43 S2P

(could be less years and more S2P with only 1 post 2006 year available but the workings would be the same)

The first post 2016 year added only £1.95 taking it up to the full £155.65, £185.15 today

Adding another pre 2016 year brings the starting amount up to £157.73 which is £187.48 today

xylophone

See p6 here

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

The OP did not have thirty years at 5/4/16 and his starting amount was based on the old system.

Therefore he could top up by adding a pre 6/4/2016 year as explained in the above.

Kim68

Thank you all for your feedback/comments.
More info a few have you asked for I am 53. started work in 1985

I paid NI every year except the following

2010 to 2011 Year is not full

We are checking this year to see if it counts towards your pension. We’ll update your record when this is finished, you do not need to do anything.(I was in a low paid job on minimum wage )

2011 to 2012 Year is not full

You have contributions from.
Paid employment: £6.48
National Insurance credits: 15 weeks
(Made redundant then claimed unemployment for few months)

Pre 2016
1985-2016
31 years ( including the two years with above issues)
thanks Kim

molerat

So as I thought you have 29 full pre 2016 years.

The only fly in the ointment is you can only use one of those two to increase the pension by the £2.33

And either one of them could do it. 

2010-11 could be found a complete year when they do the final reconciliation before paying the pension which means if you have paid 2011-12 it would have been wasted.

Your choices are

a) forget about it and if 2010-11 is found complete you will get the bonus of an increased pension or

b) pay 2011-12 and be certain of the increased amount or

c) contact HMRC and get them to check / sort the status of 2010-11 and pay the cheapest of those 2 years if necessary / you want to.

eastcorkram

When you get the letter to claim state pension, I think 3 months before it's due, do you get an explanation of how your figure was arrived at? A breakdown of the figure , rather than just a total as shown on the forecast site. 

sale_of_the_century

Kim68

This is the future pensions number :

You can also check your State Pension forecastonline to find out how much you could get and how you can increase it.

Future Pension Centre helpline

Telephone: 0800 731 0175
Telephone from outside the UK: +44 (0)191 218 3600 
Welsh language telephone: 0800 731 0175

molerat

eastcorkram said:

When you get the letter to claim state pension, I think 3 months before it's due, do you get an explanation of how your figure was arrived at? A breakdown of the figure , rather than just a total as shown on the forecast site. 

The claim letter tells you nothing, the award letter is simply you will receive £xxx.xx from yy/zz/aaaa