If the Government raises the pension age, is it worth pay for NI missing years now?

SimonFF

I have one missing year to get the estimated full state pension (I am 57), but it is a lot of money. Why should I pay for it if then this or the next government raises the pension age? 

Am I counting the wrong way?

Thanks.

double_dutchy

I assume you have stopped working and won't therefore add any more years?

I'm 59 and have a few missing years - I intend to pay for them just before I'm eligible for State Pension in 2031. You could probably do the same - the price will go up a bit, but in the meantime the money can be earning you interest and you won't risk paying out for something you might never get - if you get hit by the proverbial bus (!) or if the system changes.

molerat

If you have a part cheap year then likely worth paying now but otherwise wait until nearer the time.  It is not really a lot of money for what it gives back.  Put the money away now if you have it or drip feed into savings to pay for it, the price increases with inflation each year so will really cost the same as it does today.

p00hsticks

double_dutchy said:

I assume you have stopped working and won't therefore add any more years?

I'm 59 and have a few missing years - I intend to pay for them just before I'm eligible for State Pension in 2031. You could probably do the same - the price will go up a bit, but in the meantime the money can be earning you interest and you won't risk paying out for something you might never get - if you get hit by the proverbial bus (!) or if the system changes.

Remember that you won't be able to pay for any current missing years in 2031, as the deadline will have reverted to only being able to pay for the six most recent previous years.  

eskbanker

SimonFF said:

I have one missing year to get the estimated full state pension (I am 57), but it is a lot of money. Why should I pay for it if then this or the next government raises the pension age?

If you're 57 now then you'll receive the state pension from 2034 - the current plan is to increase the age to 68 sometime between 2044 and 2046, but even if that was to be brought forward, there remains a commitment to at least ten years notice, so it's highly unlikely that there's anything that would change your SPA.  Any government can change any legislation of course, but it would have to be a remarkable change to affect someone of your age.

double_dutchy

p00hsticks said:

Remember that you won't be able to pay for any current missing years in 2031, as the deadline will have reverted to only being able to pay for the six most recent previous years.  

Thanks @p00hsticks, Yes, I'm aware of that - I'll probably pay for two years (the third missing one doesn't give me much extra), but as I'm no longer working all years should be available - I'll just pay for the cheapest two still available in 2031

SimonFF

eskbanker said:

SimonFF said:

I have one missing year to get the estimated full state pension (I am 57), but it is a lot of money. Why should I pay for it if then this or the next government raises the pension age?

If you're 57 now then you'll receive the state pension from 2034 - the current plan is to increase the age to 68 sometime between 2044 and 2046, but even if that was to be brought forward, there remains a commitment to at least ten years notice, so it's highly unlikely that there's anything that would change your SPA.  Any government can change any legislation of course, but it would have to be a remarkable change to affect someone of your age.

This has been triggered by reading that Italy is planning to raise the pension age to 70.

Sarahspangles

SimonFF said:

eskbanker said:

SimonFF said:

I have one missing year to get the estimated full state pension (I am 57), but it is a lot of money. Why should I pay for it if then this or the next government raises the pension age?

If you're 57 now then you'll receive the state pension from 2034 - the current plan is to increase the age to 68 sometime between 2044 and 2046, but even if that was to be brought forward, there remains a commitment to at least ten years notice, so it's highly unlikely that there's anything that would change your SPA.  Any government can change any legislation of course, but it would have to be a remarkable change to affect someone of your age.

This has been triggered by reading that Italy is planning to raise the pension age to 70.

Are they also removing their rules that allow people to retire at a younger age if they’ve a) contributed or b) worked for a long period, that currently allow many to retire before UK SPA?

eskbanker

SimonFF said:

eskbanker said:

SimonFF said:

I have one missing year to get the estimated full state pension (I am 57), but it is a lot of money. Why should I pay for it if then this or the next government raises the pension age?

If you're 57 now then you'll receive the state pension from 2034 - the current plan is to increase the age to 68 sometime between 2044 and 2046, but even if that was to be brought forward, there remains a commitment to at least ten years notice, so it's highly unlikely that there's anything that would change your SPA.  Any government can change any legislation of course, but it would have to be a remarkable change to affect someone of your age.

This has been triggered by reading that Italy is planning to raise the pension age to 70.

Why would events in Italy have any bearing on the UK?  Even when we were in the EU, I don't recall any strong alignment of pension legislation, and it would be even less now....

SimonFF

Sarahspangles said:

SimonFF said:

eskbanker said:

SimonFF said:

I have one missing year to get the estimated full state pension (I am 57), but it is a lot of money. Why should I pay for it if then this or the next government raises the pension age?

If you're 57 now then you'll receive the state pension from 2034 - the current plan is to increase the age to 68 sometime between 2044 and 2046, but even if that was to be brought forward, there remains a commitment to at least ten years notice, so it's highly unlikely that there's anything that would change your SPA.  Any government can change any legislation of course, but it would have to be a remarkable change to affect someone of your age.

This has been triggered by reading that Italy is planning to raise the pension age to 70.

Are they also removing their rules that allow people to retire at a younger age if they’ve a) contributed or b) worked for a long period, that currently allow many to retire before UK SPA?

I have no idea. Sorry.

SimonFF

eskbanker said:

SimonFF said:

eskbanker said:

SimonFF said:

I have one missing year to get the estimated full state pension (I am 57), but it is a lot of money. Why should I pay for it if then this or the next government raises the pension age?

If you're 57 now then you'll receive the state pension from 2034 - the current plan is to increase the age to 68 sometime between 2044 and 2046, but even if that was to be brought forward, there remains a commitment to at least ten years notice, so it's highly unlikely that there's anything that would change your SPA.  Any government can change any legislation of course, but it would have to be a remarkable change to affect someone of your age.

This has been triggered by reading that Italy is planning to raise the pension age to 70.

Why would events in Italy have any bearing on the UK?  Even when we were in the EU, I don't recall any strong alignment of pension legislation, and it would be even less now....

Because Italy is usually depicted in the British press as a country of lazy buffoons who don't like working. If anything, any Western/Nordic European government can say "If even the Italians accept to retire at 70..."