Confused about the extra Pensions contributions

molerat

Yes, one more year needed by April 2030.  Have you checked her NI record for any cheap part filled years ?

Sarahspangles

Assuming she hasn’t worked this year and just retired and will have that year confirmed shortly, then she needs another year. There’s no particular rush to do this before 5th April unless she has a part year that is cheap, and it’s one that has to be bought now, 

I-LOV-MONEY

Apologies for the delay in responding.  

Checking her records it seems that she did not pay a full year from 2015 to 2023 and in theory would need to pay £7449 !  (She may - hopefully win the lottery tonight!!!), but then this differs from £215.61 pw (£11,541.90 pa) that is forecast.  No wonder I am confused.com (!).  Can someone explain what is happening?

molerat

Gaps are of no relevance whatsoever, you do not need to fill every year in your lifetime. It is what she has that counts and the forecast clearly states she only needs one more year to reach the full amount.

From my earlier post

The forecast clearly states everything.  The big green box at the top is how much she can expect to achieve by the time she reaches retirement.  Below that it shows how much she has already achieved, something that cannot be taken away.  It then goes on to show how many more years of contributions are needed to reach that big green box amount.

If that second amount is £215.61 then she is £5.59 away from the full pension and the forecast will state she needs to contribute one more year.  If she buys that one year the pension will be increased by £5.59 per week, £290.68 per year at a cost of around £824 which will be repaid gross in under 3 years.  That is the equivalent of a single life index linked annuity at 30%+, could you buy that anywhere else ? 

Missing years don't matter, it is what you have got that counts.  Are any of those gaps cheap part filled, the NI record shows the prices ?

What is it that is confusing you ?

So are any of those gap years part filled and cheap ? Simply click on "View details"

Dazed_and_C0nfused

I-LOV-MONEY said:

Apologies for the delay in responding.  

Checking her records it seems that she did not pay a full year from 2015 to 2023 and in theory would need to pay £7449 !  (She may - hopefully win the lottery tonight!!!), but then this differs from £215.61 pw (£11,541.90 pa) that is forecast.  No wonder I am confused.com (!).  Can someone explain what is happening?

Why on earth would she want to buy 8(?) years when a single (post 2016) year will take her to her personal maximum.

With all due respect you are making very heavy weather of this despite having the basic facts in front of you and several people here explaining things 🤷‍♂️

I-LOV-MONEY

Thank you.

What was confusing me was that it showed years where the payment hasn’t been made, and whether it needed to be topped up.   As we now know it is only one year, she need not worry.   (We didn’t win the lottery last night, either!)

Dazed_and_C0nfused

I-LOV-MONEY said:

Thank you.

What was confusing me was that it showed years where the payment hasn’t been made, and whether it needed to be topped up.   As we now know it is only one year, she need not worry.   (We didn’t win the lottery last night, either!)

It does not show "whether it needed to be topped up".

It shows the years that are available to top up.

From everything you have posted one post 2016 year is all that is needed (if she wants reach £221.20).

I-LOV-MONEY

molerat said:

If that second amount is £215.61 then she is £5.59 away from the full pension and the forecast will state she needs to contribute one more year.  If she buys that one year the pension will be increased by £5.59 per week, £290.68 per year at a cost of around £824 which will be repaid gross in under 3 years.  That is the equivalent of a single life index linked annuity at 30%+, could you buy that anywhere else ? 

Sorry it is this para that is confusing me.   How much would one years payment cost?   Where does £824 come from?   Who will be repaying what gross in under 3 years?  Also 30% indexed linked annuity?

obviously you guys understand this better than me (my wife even less!!), so these questions maybe simple/obvious to you, but to me they are just numbers!!

Dazed_and_C0nfused

I-LOV-MONEY said:

molerat said:

If that second amount is £215.61 then she is £5.59 away from the full pension and the forecast will state she needs to contribute one more year.  If she buys that one year the pension will be increased by £5.59 per week, £290.68 per year at a cost of around £824 which will be repaid gross in under 3 years.  That is the equivalent of a single life index linked annuity at 30%+, could you buy that anywhere else ? 

Sorry it is this para that is confusing me.   How much would one years payment cost?   Where does £824 come from?   Who will be repaying what gross in under 3 years?  Also 30% indexed linked annuity?

obviously you guys understand this better than me (my wife even less!!), so these questions maybe simple/obvious to you, but to me they are just numbers!!

£824 = the amount it might cost you/her to buy an additional qualifying year

£5.59 extra State Pension per week the extra year entitled you/her to = £290/year

£290 extra State Pension per year = £870 after 3 years (in reality more due to triple lock increases)

Where could you buy an annuity worth £290/year for an initial outlay of just £824?

NB.  State Pension is paid by DWP

I-LOV-MONEY

Just out of interest I have just checked mine.  I paid for 11 years up to 1975 and full payments 1975-2013 except 2007/8 which wasn’t full.  I don’t remember stopping work, but it is ‘water under the bridge’ inasmuch as it is too late!