NI contributions - 41st year almost full but redundancy

MaidaVale3499

I am shortly, during February 2024, to be made unexpectedly redundant after 12 years with employer.  I hasten to add the news and timing could not be better for me as I was due to leave (to retire early) at Sept 2023 aged 55.   The consultation process started in June 2023 but was delayed (due to my prolonged period of unforseen sick leave, full pay received so cannot fault my employer)  and did not resume until Dec 2023 with notice to sever my employment due to redundancy being served  1st Feb 2024 (3 months PILON included in agreed redundancy package) and Leave date 23 Feb.

My YouGov NI record shows I have 40 full years as of close of 2022/23.

Questions: 

1.  For the year 2023/24,   by the time i leave my employment in mid Feb I will have paid c46 weeks employee NI  contributions...... will this be enough to bag another full year of contributions or will I be c6 weeks short?

2.  Should i even be worried about a 41st year as I already have 40 full years?

3.  Colleague suggested I sign on for ni contribution job seekers allowance (and genuinely seek work/ & work) for 6 weeks to secure the 6 weeks NI contributions  (I've never claimed unemployment benefit as I've been continuously employed since 1985)

4.  Should I wait and only pay the missing 6 weeks if at somepoint in the future the  rule changes around minimum number of years increases from current 35 years?

I'm 57 and need to create my retirement decumulation over next 12 months, fortunately the very generous redundancy package means c3.5 years of my "comfortable" living costs are covered so no having to take DB pension to early or make any panicked drawdown from my DC or SIPP or ISA/GIA

Someone has been shining on me to get this redundancy.  I know I have been very lucky but I have worked hard.

barnstar2077

Start by checking your actual entitlement, as NI contributions can be very misleading.  Some people need less than thirty five years, and others a lot more!

https://www.gov.uk/check-state-pension

Dazed_and_C0nfused

1.  Highly likely to have accrued another year.

2.  Worried?  No.  But you might need it to reach the standard the new State Pension.  Why not check your State Pension forecast on your Personal Tax Account then you will know where you stand.  Without a period of DB (contracted out) pension you have quite possible already reached £203.85/week (or even more).

3.  Unlikely to be necessary from a State Pension perspective (but as above, why not check the facts yourself).  But it might be useful if you need to claim benefits later in life.

4.  The 35 years rule isn't applicable to you, that just applies to those starting to build up an NI record from 2016.  You are under transitional rules.  Again, why not check what you have already accrued 🤔

QrizB

What exactly does your state pension forecast say?

https://www.gov.uk/check-state-pension

The details, please, not just the headline number.

Marcon

MaidaVale3499 said:

I am shortly, during February 2024, to be made unexpectedly redundant after 12 years with employer.  I hasten to add the news and timing could not be better for me as I was due to leave (to retire early) at Sept 2023 aged 55.   The consultation process started in June 2023 but was delayed (due to my prolonged period of unforseen sick leave, full pay received so cannot fault my employer)  and did not resume until Dec 2023 with notice to sever my employment due to redundancy being served  1st Feb 2024 (3 months PILON included in agreed redundancy package) and Leave date 23 Feb.

My YouGov NI record shows I have 40 full years as of close of 2022/23.

Questions: 

1.  For the year 2023/24,   by the time i leave my employment in mid Feb I will have paid c46 weeks employee NI  contributions...... will this be enough to bag another full year of contributions or will I be c6 weeks short?

2.  Should i even be worried about a 41st year as I already have 40 full years?

3.  Colleague suggested I sign on for ni contribution job seekers allowance (and genuinely seek work/ & work) for 6 weeks to secure the 6 weeks NI contributions  (I've never claimed unemployment benefit as I've been continuously employed since 1985)

4.  Should I wait and only pay the missing 6 weeks if at somepoint in the future the  rule changes around minimum number of years increases from current 35 years?

I'm 57 and need to create my retirement decumulation over next 12 months, fortunately the very generous redundancy package means c3.5 years of my "comfortable" living costs are covered so no having to take DB pension to early or make any panicked drawdown from my DC or SIPP or ISA/GIA

Someone has been shining on me to get this redundancy.  I know I have been very lucky but I have worked hard.

You are under transitional arrangements so there is no 'magic' number of years - and as you've been in a DB scheme, which was almost certainly contracted out, that will impact on your state pension. More info/get a forecast here: https://www.gov.uk/browse/working/state-pension

Some of the posts on this thread might make helpful reading: https://forums.moneysavingexpert.com/categories/state-pension-topping-up

xylophone

On your State Pension Forecast, what exactly is shown under "Estimate to 5/4/23"?

MaidaVale3499

Thanks everyone.

Sorry should have included in my original post that I had already fully checked both my yougov ni history and entitlement to SP.  The latter showing that I had met requirement/years to receive max SP and that this could not be improved upon other than deferring.

I should have been more explicit in my original post.

swindiff

I am a bit confused as to the point of the original post then. You have met the requirements for full state pension and you can't improve on it any further with more NI contributions.

Dazed_and_C0nfused

swindiff said:

I am a bit confused as to the point of the original post then. You have met the requirements for full state pension and you can't improve on it any further with more NI contributions.

This ^^^^

What was the purpose of your post 🤔

af1963

Dazed_and_C0nfused said:

swindiff said:

I am a bit confused as to the point of the original post then. You have met the requirements for full state pension and you can't improve on it any further with more NI contributions.

This ^^^^

What was the purpose of your post 🤔

Probably this ...

4.  Should I wait and only pay the missing 6 weeks if at somepoint in the future the  rule changes around minimum number of years increases from current 35 years?

It's unlikely, but not impossible, that the rules change in the 10 years before hitting 67.  An extra year can't do any harm. But unless the original poster is very low paid, the year is probably full already anyway, based on the amount paid in the 46 working weeks.

Audaxer

MaidaVale3499 said:

Thanks everyone.

Sorry should have included in my original post that I had already fully checked both my yougov ni history and entitlement to SP.  The latter showing that I had met requirement/years to receive max SP and that this could not be improved upon other than deferring.

I should have been more explicit in my original post.

As your NI record has already qualified you for the max State Pension, there is no point paying any voluntary NI to make up the current year, as it won't make any difference.