Partial year but told not worth topping up

NDLaughing

I have 33 full years and 2 partially paid years. I stopped working in 2014 due to I'll health. A few years ago I enquired about contributing to make the extra 2 years (£300 or do) but I'm pretty sure I was told it would not make any difference and I'd just be wasting my money. They said I would have to contribute later years in full (£800py). I still don't really understand why, can anyone enlighten me? 

badmemory

If you enquired after 2016 then it is possible that nothing would make a difference.  Have you checked online.  It is possible that you had enough SERPS or similar to make you qualify for the current full state pension.  I'm sure someone will be along soon to post you the necessary lin k for you to check.  But when you have checked you can always come back here & confirm you have what you have what you need.

molerat

Pre 2016 years will not always add to your pension amount, that is possibly the reason.  You are, depending on your personal circumstances, limited to using a maximum of either 30 or 35 pre 2016 years and if you have already hit that personal threshold then adding more will not help.

Post up the details from your forecast and someone will talk you through it

Current weekly £££.pp amount accrued up to April 2022 (or 2023 as some have been updated)
Number of pre April 2016 NI years full
Number of post April 2016 NI years full
Tax year you reach state retirement
Any COPE amount shown, in a click link in "You've been in a contracted-out pension scheme" if there is one.
Years which show not full and prices

NDLaughing

Pension date - Apr 2033

Est £194. 95 (Apr 22)
If I add another 2 years it's.. 
£203.85

33 years full... 
From 1981/82 to 2013/2014 are all full (although not sure how as I was only 15 in 1981!) 

2014/15 and 2015/16 are partial (due to ESA?) 

No contributions since then and all years are around £800 to add

molerat

Your 2016 starting amount was under the old rules so only 30 can be used and you already had 33 so the partial years will not help.  You are £8.90 short so need 2 more years to reach the full amount.  1 will take you to £200.77 at £5.82 and the 2nd will add £3.08.  Are you currently in receipt of benefits ?

From 1981/82 to 2013/2014 are all full (although not sure how as I was only 15 in 1981!)

The tax years in which you reached your 16th,17th & 18th birthdays were added as a freebie which assumes your birthday is 5th April or earlier.

The workings for the above.

Strip out the annual inflationary increases from £194.95 gives £148.88 at April 2016.

New calculation was 33 * (155.65 / 35) = £146.76 which is lower than the actual amount so old rules wins at 30 * (119.30 / 30) + £29.58 S2P.

NDLaughing

What do you mean by '2016 starting amount?'

2 years - yes

No benefits

Freebies - that's nice of them!

Thanks for your help 

molerat

In April 2016 a line was drawn at the introduction of the new pension and you were given the higher of the old or new calculations ensuring you were no worse off.  You could then add to that amount going forward up to the new maximum.

NDLaughing

So, to confirm, the previous advice I had a few years ago is correct and it's not worth contributing to pre 2016 years and to get my full 35 years I need to contribute to two years post 2016, which will cost roughly £800 each. And I don't need to do that just yet, any time up to I can claim my pension in 2033

molerat

Correct.  £800 rising with inflation each year. 23-24 is £907.40 and 24-25 will be £907.40 + maybe 7%.  Years stay at the in year price for 2 years after the end of the year then increase in price each year to the current year price for a further 4 years after which they cease to be available.  Currently 2006-07 to 2016-17 are all treated as 2016-17 for timeline purposes and the April 2023 point in time has been paused until April 2025 for those and years up to 2021-22.