We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Apologies, another unsuccessful Future Pension Centre caller ...

Big_Dragon
Big_Dragon Posts: 2
First Post
Newbie
edited 13 June 2023 at 1:48PM in Topping up your state pension
Hello

Like many others, I haven't been able to get through to the Future Pension Centre in spite of numerous attempts ...

So I'm hoping someone can please help based on my figures:

Age: 59 
State Pension Forecast: £203.85 (if I contribute another 8 years before 2030)
NI Record: 30 years of full contributions up to and including 2015/16. No contributions paid since then.  
Current estimate: £161.98
COPE estimate: £41.11

Anything could change, but I don't currently expect to be making future NI contributions via work before official retirement. So for years 2016/17 to date I have the option of paying the following voluntary contributions by specified dates:
2016/17 - £824.20 by 31 July 2023
2017/18 - £824.20 by 5 April 2024 (shortfall may increase after 31 July 2023)
2018/19 - £824.20 by 5 April 2025 (shortfall may increase after 31 July 2023)
2019/20 - £824.20 by 5 April 2026 (shortfall may increase after 31 July 2023)
2020/21 - £795.60 by 5 April 2027 (shortfall may increase after 31 July 2023)
2021/22 - £800.80 by 5 April 2028 (shortfall may increase after 5 April 2024)

I have read somewhere that the shortfall amount will increase from £804.20 to £907.40 from 1 Aug 2023 (with, presumably, further increases in years to come).

In my position, therefore, does it make most sense just to pay the 2016/17 shortfall now (as 31 July 2023 seems to be an absolute deadline), then to pay each subsequent year's shortfall on an annual basis?  I appreciate that the shortfall amount may go up each year, but then again it's possible if my circumstances change that either I will be working or (if I am unlucky) no longer around.  Or is there a clear advantage in paying more than just the 2016/17 shortfall now?

Thanks very much in advance for any advice.

Comments

  • molerat
    molerat Posts: 36,581
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    edited 12 June 2023 at 11:19AM
    7 more years will take you to £202.75 and the 8th will add the final £1.10 so maybe not worth paying.  Up to you how to play it.  The downside of paying ahead of time is that it is all lost if you step under a bus all is lost.  If you are going to pay as you go along in future it would be a better plan to get 20-21 and 21-22 as your starter.

    Never associate with idiots on their own level, because, being an intelligent man, you'll try to deal with them on their level - and on their level they'll beat you every time.

    Being hated by idiots is the price you pay for not being one of them.

    Jean Cocteau 1889-1963

  • Thanks, Molerat, presumably 20/21 and 21/22 as starters simply because the shortfall amount is smaller?
  • molerat
    molerat Posts: 36,581
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    yes, and no need to get in to the FPC scrabble.

    Never associate with idiots on their own level, because, being an intelligent man, you'll try to deal with them on their level - and on their level they'll beat you every time.

    Being hated by idiots is the price you pay for not being one of them.

    Jean Cocteau 1889-1963

★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 355.8K Banking & Borrowing
  • 254.9K Reduce Debt & Boost Income
  • 456.2K Spending & Discounts
  • 248.3K Work, Benefits & Business
  • 605.9K Mortgages, Homes & Bills
  • 179K Life & Family
  • 263.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.