Future Pensions

Mildie

i will not make any further comments re getting through to the above ! you could waste an entire week trying it seems!
in the hope that there might be someone with the knowlege out there to help:
I am female will be 66 next feb
I stopped working 5 years ago and have a couple of small HSBC pensions ( one of which will be subject to "Clawback", another subject all together!) once i reach 66 and am in receipt of state pension
I belive i may have been contracted out at some point also but am unsure at what stage
according to my forecast dated today
i have 45 years of full contributions
4 years when i did not contribute enough 2018-2022 ( last years figure not yet available)
shortfall figures for years 2018 - 2022 are £824.20,£824.20,£795.60, and £800.80 weirdly they all say i can make up the shortfall but are quting if i pay voluntary contgributions by between 5 April 2025 and 5 April 2028

my question is shoould Ibe making payments for any/all of these years and if so why does it suggest Ihave quite a few years in which to "catch up" whne i thought there was only until July 2023?

if there is anyone out there who has managedd to get through to the inadequately manned pohone line and can offer any help or advice i would be grateful

i have emailed my MP today for help also

eskbanker

What does your forecast say, in terms of the amount of weekly pension you've earned based on contributions up to 2022, and what does it say the maximum you can achieve is?

The July 2023 deadline only applies to the temporary situation regarding filling in gaps in older years, beyond that it reverts to the normal situation of being able to plug the last six years.

p00hsticks

Mildie said:

my question is shoould Ibe making payments for any/all of these years and if so why does it suggest Ihave quite a few years in which to "catch up" whne i thought there was only until July 2023?

To answer the second question first.

 The option to got back six years to make voluntary contributions has always been in place and will continue to be after July 2023 - it's only the window to go back further (as far as 2006-7) that will close in July 2023 as this was always intended to be a temporary extension following the introduction of the new State Pension in 2016.

 For the first question, we need one more piece of information - namely how much is your state pension forecast saying you are currently entitled to (up to April 2022)?

xylophone

I stopped working 5 years ago and have a couple of small HSBC pensions ( one of which will be subject to "Clawback", another subject all together!) once i reach 66 and am in receipt of state pension
I belive i may have been contracted out at some point also but am unsure at what stage

The Final Salary Scheme was contracted out.

https://futurefocus.staff.hsbc.co.uk/-/media/project/futurefocus/information-centre/active-hybrid/guides/august-2000-midland-member-guide.pdf

Do you have both DB and DC benefits?

https://futurefocus.staff.hsbc.co.uk/-/media/project/futurefocus/information-centre/active-hybrid/guides/hybrid-scheme-booklet-july-2019.pdf

Re Clawback

https://committees.parliament.uk/writtenevidence/9758/pdf/

You already had 45 qualifying years at 5/4/16.

At 6/4/16, your "starting amount" for  new state pension was calculated under 

Old Scheme Rules

Full Basic State Pension (because you had at least 30 qualifying years) + ( Additional State Pension - Deduction for Contracting Out)

£119.30 + (ASP - "COD").

New Scheme Rules

Full NSP (because you had at least 35 Qualifying years) - Contracted Out Pension Equivalent (Rebate Derived Amount) used just once in this calculation.

£155.65 - COPE.

and was the higher of the two.

If your starting amount was lower than a full NSP, qualifying years (contributions /credits) from 6/4/2016 -  5/4/2023 could improve it up to (but not in excess of) a full NSP.

according to my forecast dated today

What exactly does it say under

Estimate to 5/4/22?

What was your COPE?

Mildie

Thank you all for the information yesterday in response to various questions (I have never used this forum, or any other so apologies if there was a way of answering to “individuals” replies) 

my forecast states 
£199.84 a week

i need to contribute (which for past five years I have not nor will be before state pension age) to reach my forecast
”estimate based on NI up to April 22 £194.02/week”
”forecast if you contribute til 5 April 2023 £199.84/week”

my COPE figure is £26.38

if I have understood correctly (?)from your responses (I particluarly thank “xylophone” for the various links which I have saved”) this “deadline” which has us all desperately trying  to get through to Future Pensions relates only to shortfall before 2016? 

Do those figures relating to 2018/22  I have been given going forward mean it would be beneficial to  “drip feed” £800+ Or so per year for the next 5/6 years should I be able or wish to?

Again I thank you all I have never used a forum but can certainly see the benefits of reaching out for help when trying official channels seem futile!

Dazed_and_C0nfused

Do those figures relating to 2018/22 I have been given going forward mean it would be beneficial to “drip feed” £800+ Or so per year for the next 5/6 years should I be able or wish to?

I think you've got confused somewhere along the line.

Your forecast shows you have already accrued £194.02/week.

Your personal maximum is £203.85/week.

Adding one additional post 2016 year will take you to £199.84/week.

Adding a second post 2016 year will add the final £4.01/week taking you to £203.85.

There is no need/benefit in paying voluntary contributions for 5/6 years.

molerat

You need 2 more years to reach the maximum.  The current cheapest route is 20-21 at £795.60 before July - after which it will go up to £907.40 - then 21-22 before April 2024.  If you miss 20-21 then it will be 22-23 at £824.20 before April 2025.

Mildie

I getting more 🫤 confused?

so I DO need to pay more to achieve best results long term?

Still worth preserving on telephone although by sounds of it the chances of ever getting even a dial tone!……  

I am getting this now ? it’s not so critical that I personally get through by July ?
would I still be able to “catch up” if I got through and made payment at some point this tax year?

when I started work at 16 never did it occur to me that we wouldn’t get our pensions at 60 surely that is some sort of break of contract on the part of Government? You certainly wouldn’t get away with it in business! 

p00hsticks

Mildie said:

Do those figures relating to 2018/22  I have been given going forward mean it would be beneficial to  “drip feed” £800+ Or so per year for the next 5/6 years should I be able or wish to?

You say you will be 66 (and therefore reach state Pension age) next February (2024).
 If this is the case then the year just gone (2022-23) will be the last you will be able to buy.

 Although you will be able to make voluntary contributions to fill in missing years for up to six years in the past, even after reaching state pension age, it will be much to your benefit (if you can afford it) to fill in the gaps before you reach state pension age, as any resulting increase will not be backdated and it may take much longer for your pension amount to be recalculated as it becomes a manual process.

 As your forecast that goes up to April 2022 says, buying one more 'future' year (2022-23, actually now just ended ) will take your state pension from £194.02 to £199.84 - but there should also be wording on your forecast somewhere that says something like ' you have gaps in your record and can increase your forecast further by making voluntary contributions to these'. As Dazed points out about, buying one of these will add a further £4.01.

 You can buy any two of the last five years for which you have gaps - all will have the same effect but currently you should find 2020-21 and 2021-22 the cheapest at £795.60 and £800.80 respectively (this is because rates for the last two previous years are held at their original rates, after which they rise to the same as for the current year.

These prices increases have been deferred form April to July this year to match the extension of the deadline. After July the cheapest two will be 2021-22, still at £800.80 and 2022-23 at £824.20, with the others rising to £907.40 - a big increase due to the fact that they increase at the same inflation rate as the state pension , which was 10.1% this year.

Mildie

thanks so basically I still need to get through to obtain a payment reference and instruction on how to pay (should I am able) for at least two years which may make a small difference monthly but obviously going forward should I live a long life may be worth it?
if you can’t get through before July it would mean paying the two years would cost more?
Why would I only pay two missing years and not the last 5/6 before pension age when I haven’t worked at all?

p00hsticks

Mildie said:

thanks so basically I still need to get through to obtain a payment reference and instruction on how to pay

You can do it on the phone, or you can write a cheque and send it with a covering letter
Pay voluntary Class 3 National Insurance: By cheque through the post - GOV.UK (www.gov.uk)

Mildie said:

 which may make a small difference monthly but obviously going forward should I live a long life may be worth it?

 We're talking a potential increase of nearly £10 a week, not a month, here - around £500 a year. If you are a basic rate tax payer you'll have recouped the intial outlay before you reach 70, and after that you are quids in - it's one of the best investments you can make. 

Mildie said:

if you can’t get through before July it would mean paying the two years would cost more?

As per my previous post - the price of 2021-22 would stay the same at £800.80, but the next cheapest changes from 2020-21 at £795.60 to 2022-23 at £824.20

Mildie said:

Why would I only pay two missing years and not the last 5/6 before pension age when I haven’t worked at all?

Because buying more than two years won't increase your state pension amount further (although the government would I'm sure be happy to accept your voluntary contributions). It's not necessary to have a full NI record for every year in order to reach the maximum. Many will have got there at a relatively young age, but if working still have to pay NI. Those born this century and falling completely under the new system will reach the maximum with 35 years of contributions.