HMRC, State Pension & Top Up

lloydws

According to the HMRC website, I have 40 years of full NI contributions. However, the same website says I will not receive my full state pension when I retire. Can someone explain why, please?

Dazed_and_C0nfused

Because you are under transitional rules.

I presume you think having 35 years is of some relevance?  Those rules only apply to those starting to build up an NI history from 2016.

Gov.uk explains it here.

https://www.gov.uk/new-state-pension/how-its-calculated


You are likely to be a winner under the new rules having paid reduced NI for many years but now with an opportunity to increase what you were always expecting (basic State Pension) to the new State Pension.

Countless threads on this on the Pension board and Topping up state pension sub board.

xylophone

See

https://forums.moneysavingexpert.com/discussion/comment/80110845#Comment_80110845

What exactly does your forecast show?

See

https://forums.moneysavingexpert.com/discussion/comment/80112966/#Comment_80112966

lloydws

My forecast is £203.85 a week, £886.38 a month, £10,636.60 a year. It then goes on to say that I need to continue to contribute NI to reach my forecast. So even though my NI records say I have 40 years of full contributions I still will not get a full pension but only £197.96. So 2 questions.

1. Why, if I have 40 years full contributions do I not get the full pension?
2. How do I make NI contributions (I am retired) to get the full pension?

molerat

1.  Because with a pre 2016 NI record you need as many as it takes especially as you presumably have a contracted out pension.  35 years is only applicable to those born this century.

2. You pay class 3 voluntary contributions for 1 post 2016 year which will take you to £203.75, just 10p short of the max.

https://www.gov.uk/pay-voluntary-class-3-national-insurance

xylophone

1. Why, if I have 40 years full contributions do I not get the full pension?

Did you read the links in my post above?

Your "starting amount" was short of a full new state pension but you were under state pension age at 6/4/16 - in your position, only contributions from 6/4/16 up to the tax year before the one in which you reached SPA could improve your forecast.

What is your COPE?

It appears that you only need to make a voluntary contribution for one of those years to reach just shy of the full NSP.

lloydws

Got it sorted. Phoned Future Pension Centre who answered within minutes. They told me the amount I needed to pay and then transferred me to HMRC who told me how to pay it. All in all, took all of 10 minutes if that on the phone to resolve it. Thanks to the guys on this thread and the Government!