Boosting your state pension should now be quicker and easier as new online tool launches

pinnks

Just because you fall foul of that question, doesn't mean you can't use the service, it just means you need to look carefully at what it says.

Sea_Shell

pinnks said:

Just because you fall foul of that question, doesn't mean you can't use the service, it just means you need to look carefully at what it says.

Are you replying to me?

Really?   I thought it meant I had to ring up and couldn't use the online payment system.

That seems to be the message/impression it gave.

Have I misunderstood?

Doctor_Who

Sea_Shell said:

pinnks said:

Just because you fall foul of that question, doesn't mean you can't use the service, it just means you need to look carefully at what it says.

Are you replying to me?

Really?   I thought it meant I had to ring up and couldn't use the online payment system.

That seems to be the message/impression it gave.

Have I misunderstood?

I am in a very similar situation (retired early before SPA and no intention of going back to work). I told the new online system that I intend to stop paying NI before SPA, and entered a date of June 2026 (I will be paying voluntary NI until then). I was then given two options of buying one or two missing years from 2021-22 and 2022-23. The figures quoted for the weekly pension increases assumes you will continue to pay NI in future years, so it's a bit confusing (it doesn't just tell you how buying the extra years alone will increase the pension). As long as you understand that buying one missing year adds around £6.32 to the weekly pension (not the £25.28 that the online system told me - due to assuming future years will be paid) then it seems to work. The online payment worked fine and I'm now just waiting for the NI record to be updated.

kgrocott1

I am slightly baffled though, since this morning, I checked online for missed NI contributions on the state pension government website, and there is one missed year in 2013-14 for when I worked abroad - but I still seem to qualify for the full state pension when I checked.  Is that possible?  I don’t believe as a 63 year old man I can get any more than £221.20 per week, as stated on my state pension forecast, so is it worth paying the extra £824 for my missing year if I am on the best forecast for my pension anyway?

Dazed_and_C0nfused

kgrocott1 said:

I am slightly baffled though, since this morning, I checked online for missed NI contributions on the state pension government website, and there is one missed year in 2013-14 for when I worked abroad - but I still seem to qualify for the full state pension when I checked.  Is that possible?  I don’t believe as a 63 year old man I can get any more than £221.20 per week, as stated on my state pension forecast, so is it worth paying the extra £824 for my missing year if I am on the best forecast for my pension anyway?

Jeremy Hunt would be pleased to have your money but if you have definitely understood your forecast correctly and have reached £221.20/week then it would be a waste of money.

Are you certain you have now accrued £221.20 and that that isn't just the amount you could achieve with additional years?

Doctor_Who

kgrocott1 said:

I am slightly baffled though, since this morning, I checked online for missed NI contributions on the state pension government website, and there is one missed year in 2013-14 for when I worked abroad - but I still seem to qualify for the full state pension when I checked.  Is that possible?  I don’t believe as a 63 year old man I can get any more than £221.20 per week, as stated on my state pension forecast, so is it worth paying the extra £824 for my missing year if I am on the best forecast for my pension anyway?

My state pension forecast says I currently have around £185 per week and am forecast to have the maximum of £221.20 per week if I continue to contribute for another 6 years. If you already have the maximum amount of £221.20 per week (the 'current' figure) then you can't improve on that through worked-based NI contributions or by paying voluntary class 3 contributions. As above, you need to carefully check what your state pension forecast says.

pinnks

Sea_Shell said:

pinnks said:

Just because you fall foul of that question, doesn't mean you can't use the service, it just means you need to look carefully at what it says.

Are you replying to me?

Really?   I thought it meant I had to ring up and couldn't use the online payment system.

That seems to be the message/impression it gave.

Have I misunderstood?

Yes, I was replying to you.  Doctor_Who pretty-much answered your comment for me.  I am not sure what the real difference is between the first 2 options about stopping paying NI when wanting to fill gaps but they seem to be aimed at when you plan to stop paying any type of NI, including voluntary payments.  Poorly worded in my view as that is at least 3 people in this discussion (myself included) that have struggled with which option to chose.

Sea_Shell

pinnks said:

Sea_Shell said:

pinnks said:

Just because you fall foul of that question, doesn't mean you can't use the service, it just means you need to look carefully at what it says.

Are you replying to me?

Really?   I thought it meant I had to ring up and couldn't use the online payment system.

That seems to be the message/impression it gave.

Have I misunderstood?

Yes, I was replying to you.  Doctor_Who pretty-much answered your comment for me.  I am not sure what the real difference is between the first 2 options about stopping paying NI when wanting to fill gaps but they seem to be aimed at when you plan to stop paying any type of NI, including voluntary payments.  Poorly worded in my view as that is at least 3 people in this discussion (myself included) that have struggled with which option to chose.

Poorly worded indeed!!    But I understand now, I think.

I tried again, and this time said I would stop paying NI at end 2025.   It then gave me two options.   

Pay one year at £795.60, and another at £800.80   (there is another 'full' gap too, but full price of £824.20)

AIUI, these two years will take me from current forecast of £200.83 to £213.49 per week, with the potential to still pay for 1 more worthwhile year later, taking me to £219.82.    Probably not worth the 4th year, as that will only buy £1.38 per week, (11.5 years "payback")

Tempting to buy those two "discounted" years, but conscious of the fact that I am only 52, and their might be a bus with my name on it!!   Ever the optimist!! 

I'm assuming those purchase costs will rise after April, even though they remain available until April 2027? 

molerat

I'm assuming those purchase costs will rise after April, even though they remain available until April 2027?

Yes, any year 22-23 and earlier will rise to £907.40 + Sep CPI.  Could be worse, they held 24-25 at 23-24 price so missed a 6.7% rise

Devonjem

Hello - am I correct to think that as my forecast is £225.04/week then making voluntary contributions (there are 6 years available for me to buy) will not increase that figure as it is already above the current maximum basic weekly figure of £221.20?  thanks