HMRC Tax & National Insurance Sort Out

jem16

bery_451 said:

molerat said:

There are loads of threads that explain everything, try here for starters. https://forums.moneysavingexpert.com/discussion/6406767/mse-guide-how-much-state-pension-will-i-get#latest

If you provide the information I asked for many posts back everything will be explained to you.

35 years is of no relevance to anyone born before 2000, anecdotal evidence on here gives anything between 28 and 50 years needed to reach the full new pension all based on personal circumstances.

Got me thinking what kind of personal circumstances will match the 50 years rule and the 28 years rule? Is it personal health circumstances such as if you’re fit and healthy with no health issues then you are required to get to more years required to get to 50 years?

It’s really quite simple. It all depends on your exact NI Record and whether you were contracted out or not. If you weren’t contracted out then you would have built up additional pension from the earnings related schemes. All of this is taken into account when the two calculations were done in April 2016 to give people their Starting Amount from then. 

bery_451

jem16 said:

bery_451 said:

molerat said:

There are loads of threads that explain everything, try here for starters. https://forums.moneysavingexpert.com/discussion/6406767/mse-guide-how-much-state-pension-will-i-get#latest

If you provide the information I asked for many posts back everything will be explained to you.

35 years is of no relevance to anyone born before 2000, anecdotal evidence on here gives anything between 28 and 50 years needed to reach the full new pension all based on personal circumstances.

Got me thinking what kind of personal circumstances will match the 50 years rule and the 28 years rule? Is it personal health circumstances such as if you’re fit and healthy with no health issues then you are required to get to more years required to get to 50 years?

It’s really quite simple. It all depends on your exact NI Record and whether you were contracted out or not. If you weren’t contracted out then you would have built up additional pension from the earnings related schemes. All of this is taken into account when the two calculations were done in April 2016 to give people their Starting Amount from then. 

Do you mean COPE when you say contracted out or not? Still don't understand what is contracted out or not as I thought NI is mandatory you cant opt-out of it correct?

JoeCrystal

bery_451 said:

Do you mean COPE when you say contracted out or not? Still don't understand what is contracted out or not as I thought NI is mandatory you cant opt-out of it correct?

Jem16 explained that COPE stands for Contracted Out Pension Equivalent and applies to someone contracted out. 

Indeed, you cannot, but you pay lower National insurance contributions if you are lucky enough to be in the relevant pension schemes at the time. Indeed, such people are the most significant winners of the State pension scheme changes.

You still haven't answered molerat's questions as follows: It would be clearer if you put the answer under each question in bold.

* 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

jem16

bery_451 said:

jem16 said:t

bery_451 said:

molerat said:

There are loads of threads that explain everything, try here for starters. https://forums.moneysavingexpert.com/discussion/6406767/mse-guide-how-much-state-pension-will-i-get#latest

If you provide the information I asked for many posts back everything will be explained to you.

35 years is of no relevance to anyone born before 2000, anecdotal evidence on here gives anything between 28 and 50 years needed to reach the full new pension all based on personal circumstances.

Got me thinking what kind of personal circumstances will match the 50 years rule and the 28 years rule? Is it personal health circumstances such as if you’re fit and healthy with no health issues then you are required to get to more years required to get to 50 years?

It’s really quite simple. It all depends on your exact NI Record and whether you were contracted out or not. If you weren’t contracted out then you would have built up additional pension from the earnings related schemes. All of this is taken into account when the two calculations were done in April 2016 to give people their Starting Amount from then. 

Do you mean COPE when you say contracted out or not? Still don't understand what is contracted out or not as I thought NI is mandatory you cant opt-out of it correct?

Anyone who has a COPE figure will have been contracted out at some point before it was fully abolished in 2016. 

Contracting out referred only to the earnings related schemes of Graduated Retirement Benefit, SERPS and S2P which ran from 1961 onwards. It did not refer to the old Basic State Pension which of course you could not contract out of. Those who contracted out paid a lower rate of NI as did their employer ( through contracted out pension schemes ) or they received a part rebate of their NI which was paid into a Personal Pension. 

The old system was made up of the Basic State Pension which you were eligible for providing you had enough years of NI. Up till April 2010 it was 39 years for women and 44 years for men to receive a full BSP. From April 2010 to April 2016 it was reduced to 30 years for both. Added to that BSP was any additional pension you had accrued. In today’s money that could be up to a maximum of £360pw. 

So all of this was factored into the Starting Amount in April 2016 which looked at two calculations, one under the old system rules and one under the new system rules. Whichever was the higher became your Starting Amount from April 2016. What happened after that depended on your Starting Amount. If it was already at the maximum new state pension or above it, then you couldn’t improve your position even if still working and paying NI. If it was less than the full nSP any qualifying year from 2016 onwards added to your Starting Amount. This is basically why anything from 28 to 50 years could be needed. 

Everyone has their own circumstances looked at and that’s why molerat asked you those very specific questions to try and help you understand your own situation. You’ve given bits of answers but not answered them fully and without those answers no-one can fully explain. So it’s up to you if you want to fully understand or not.