Thoroughly Confused about my State Pension

ICMCD

Hello,

I used to work in local government. I'm 72 years of age and have been drawing my state pension - currently £161.02 per week - since my 65th birthday. According to my NI record I have 40 years of full contributions and 8 years when I didn't contribute enough. My NI Record says that I can pay £824.20 to make up the shortfall; if I do so will I receive the full state-pension?

Ayr_Rage

That £824.20 will buy you ONE missing year which will increase your pension by £5.82 per week.

The current state pension is £203.85 so you would need to buy 7.36 years to get that amount.

squirrelpie

Ayr_Rage said:

That £824.20 will buy you ONE missing year which will increase your pension by £5.82 per week.

The current state pension is £203.85 so you would need to buy 7.36 years to get that amount.

I think we need a bit more information before reaching that conclusion. The OP didn't say whether they had paid any NI in the 8 missing years, so some years might be cheaper to complete.

p00hsticks

squirrelpie said:

Ayr_Rage said:

That £824.20 will buy you ONE missing year which will increase your pension by £5.82 per week.

The current state pension is £203.85 so you would need to buy 7.36 years to get that amount.

I think we need a bit more information before reaching that conclusion. The OP didn't say whether they had paid any NI in the 8 missing years, so some years might be cheaper to complete.

The OP is currently aged 72 and so would have reached state pension age in around 2016.
Even if they reached SPA after April 5th 2016, and so fall under the new State Pension transitional rules rather than being eligible for the old 'basic' state pension, with 40 years already then it's highly unlikely that any of the years available to buy will be after April 2016, and these are the only ones that woudl increase their state pension amount. 

OP - in which tax year did you reach state pension age ?
And what years are not filled ? 

Rodders53

OP is 72:  2023-72+65 = 2016 so would have started drawing SP in that year.  Thus NO post 2016 contributions can add to the SP amount.  

IIRC only 30 years of contributions pre 2016 led to a full Old State Pension.  So with 40 full years that's yer lot

£161.02 is, in fact, more than the old basic pension (£156.20) so includes some SERPS/Second State Pension from not being contracted out all the OPs working life. OP will have the Local Government Pension on top.

I'm nearly 70 and decided not to buy any extra post 2016 years (I'd retired early) as my basic state plus works pension is more than adequate.  Money foolish, with hindsight, with the Govt stealth tax increases.

ICMCD

Thanks everyone, you've all been most helpful. 

I was fortunate enough to get early retirement from local government in Tax Year 2003, on my 52nd birthday, and I did indeed become a state pensioner in Tax Year 2016. The "missing" years run from 2004 to 2011, but my NI Record says that I could make up the shortfall only for the six years from 2006 to 2011. If it would cost me £824.20 to make up the shortfall for each of those six years, that would be a total of £4,945.20.

From what Rodders53 wrote ("So with 40 full years that's yer lot"), can I assume there's no point in my making up the shortfall?

jem16

ICMCD said:

From what Rodders53 wrote ("So with 40 full years that's yer lot"), can I assume there's no point in my making up the shortfall?

There would be no point whatsoever in paying for even one year never mind any more as your pension would not improve. 

ICMCD

Thanks, Jem. That's clear!