34 years enough for full new state pension

scobie

I’ve checked my new state pension forecast and it says I’m on track to receive the full amount of £185 if I make another four years contributions. 

However as I was overseas for a long time I have only made 30 years full contributions (including making many payments from overseas). 

Is it possible I will only need 34 years?  I assumed it was 35 but wonder if I’m falling under some transitional arrangement I don’t understand. 

TadleyBaggie

Can't see a question. Presumably 22/23 will be a full year? If so that will add another £5+ to the forecast, so that will be around £173. Two further years will take you close to the maximum.

If are still working and pay NI for the next 3 years, there is nothing more you need to do at this point.

Linton

What is your question?

35 years only applies to people who have only paid NI since 2016.  If you have pre 2016 NI then it may be anything from say 28 years to 50 years depending on your SERPs accrual and whether you were contracted-out.

scobie

Sorry - my question is whether it’s likely I would only need 34 years contributions to receive the full amount. I had always assumed it was a minimum of 35 but realise the transitional arrangements muddies those waters. 

xylophone

Sorry - my question is whether it’s likely I would only need 34 years contributions to receive the full amount. I had always assumed it was a minimum of 35 but realise the transitional arrangements muddies those waters. 

At 6/4/16, two calculations were done to establish your "starting amount" for NSP.

It was the higher of your entitlement under

(a) Old Rules

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

(b) New Rules

{NI years/35 (max) x £155,65 (Full NSP)} - (if applicable) Contracted Out Pension Equivalent.

Your starting amount was under a full NSP - qualifying years 6/4/16 to 5/4/22 have improved your starting amount to £167.85.

If the current year (22/23) is a qualifying year then you will have reached £173.14.

Two more qualifying years brings you to within a whisker of full NSP - three cinches the deal.

Dazed_and_C0nfused

Not sure if we have a definitive answer to how few years might be needed but I'm sure there has been one poster needing just 29 so 34 defo isn't going to be that unusual.

p00hsticks

Dazed_and_C0nfused said:

Not sure if we have a definitive answer to how few years might be needed but I'm sure there has been one poster needing just 29 so 34 defo isn't going to be that unusual.

Yes, we've had reports of as low as 29, as high as 50 and everything in between....

molerat

Running those numbers with 24 pre and 6 post 2016 years.

Your 2016 starting amount was £114.44, £95.44 basic and £19.00 S2P, the equivalent of 25.7 years of new pension.  Your forecast states you need 4 more years to reach the max, 3 will take you to £183.72 at £5.29 each and the 4th will only add £1.43, you get 3.3 years value for the 4 future years.  25.7 + 6 + 3.3 = 35 years of value from your 34 accrued years.

Audaxer

Looking at your figures, another 3 years NI will take to to £183.72. So it's up to you to consider whether it's worth paying for the 4th year if it's by voluntary contributions, as it's only going to get you an extra £1.43 per week.

Bimbly

I also need 34 years, reaching that on the April after my 54th birthday. It seems years of self employment and education helped.

molerat

Bimbly said:

I also need 34 years, reaching that on the April after my 54th birthday. It seems years of self employment and education helped.

Self employment and the freebies would not have reduced the number of years, each of those can only add 1/35th new pension.  Pre 2016 contracted in employment is the only way to reduce years below 35