Confused! NI Contributions

suemacd22

I looked up my state pension forecast on the Gov website and it states I'll be entitled to £185.15 from 11/03/2035.  However, I've checked my NI Record and although I have 38 years of full contributions, it tells me that 2021-2022 is not full (I stopped working in Dec 2020) and I should make up the shortfall by paying £800.80 by 05/04/2028.  Am I right in thinking that I have paid enough years of NI to qualify for maximum state pension and so paying the £800.80 is not necessary?   Apologies if this has been asked before but I'm just so confused! 

Marcon

suemacd22 said:

I looked up my state pension forecast on the Gov website and it states I'll be entitled to £185.15 from 11/03/2035.  However, I've checked my NI Record and although I have 38 years of full contributions, it tells me that 2021-2022 is not full (I stopped working in Dec 2020) and I should make up the shortfall by paying £800.80 by 05/04/2028.  Am I right in thinking that I have paid enough years of NI to qualify for maximum state pension and so paying the £800.80 is not necessary?   Apologies if this has been asked before but I'm just so confused! 

'Should' or 'could'? And what exactly does the forecast say? Might be easiest to post the first page here (with any personal info redacted).

suemacd22

Thank you for replying.  It says:-

2021 to 2022

Year is not full

You did not make any contributions this year

Find out more about gaps in your record and how to check them.

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.

Pat38493

Where the forecast says 185.15, what is the detail below that?

Does it say "you cannot improve this forecast any further" or does it give a lower number as your total entitlement?

suemacd22

It says I cannot improve the forecast further which is why I'm so confused about the suggestion to pay the shortfall of £800.80.

Your forecast

• is not a guarantee and is based on the current law
• is based on your National Insurance record up to 5 April 2022
• does not include any increase due to inflation

£185.15 is the most you can get

You cannot improve your forecast any more.

If you’re working you may still need to pay National Insurance contributions until 11 March 2035 as they fund other state benefits and the NHS.

p00hsticks

suemacd22 said:

 Am I right in thinking that I have paid enough years of NI to qualify for maximum state pension and so paying the £800.80 is not necessary?   

You haven't give us enough information to answer this - everyone born before April 2000 will fall under transitional rules and the number of years needed will depend on their individual records. 

If you post up the full details from your forecast people will be able to help. The info needed is

• What amount you are forecast to get 
• What amount you have accrued up to April 2022
• How many years going forward are still available until you reach state Pension age  
• Whether there are any gaps in your NI record available to fill
• What years are not full  
• How many full NI years you have prior to April 2016
• How many full years NI years you have after April 2016
• Is there is a COPE figure mentioned (if present it will be behind a clickable link by a sentence saying sonething like 'you were contracted out at some point....) and if so,  what is it 

Pat38493

suemacd22 said:

It says I cannot improve the forecast further which is why I'm so confused about the suggestion to pay the shortfall of £800.80.

Your forecast

• is not a guarantee and is based on the current law
• is based on your National Insurance record up to 5 April 2022
• does not include any increase due to inflation

£185.15 is the most you can get

You cannot improve your forecast any more.

If you’re working you may still need to pay National Insurance contributions until 11 March 2035 as they fund other state benefits and the NHS.

As far as I know, if it says your pension is 185.15 and then below that it says "You cannot improve your forecast any further", you are good to go and there is no action required.

You can of course pay missing NI years if you insist, but this would simply be a donation to HM Govt with no benefit to you.

That seems to be just how the system works.

suemacd22

Thank you.  It's a lot of money to pay out necessarily if I'm not going to benefit from it!   

xylophone

You had 38 qualifying years at 5/4/20?

It would seem that you had 34 qualifying years at 5/4/16?

If so,  at 6/4/16, your "starting amount"  for NSP was the higher of

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

34/35 x £155.65 (Full NSP) - (if applicable) COPE.

If your "starting amount" was less than a full NSP, qualifying years from 6/4/16 up to the year before the tax year in which you reached SPA could improve your starting amount up to (but not in excess of) a full NSP.

Your estimate at 5/4/22 showed that you had already reached a full NSP.

Therefore, even if you started to work and pay NI again ( which you would have to do if under SPA and earning the relevant amount), your contributions would not increase your SP.

When you claim your SP in 2035, you will receive whatever the full NSP is at that time.