state pension NI contributions

Stokieblokie

Hello lovely people
I thought it about time I looked into a bit of pension planning and my first stop was forecast of my state pension.  When I looked at my NI contributions there were 3 years (back in the 2010s) which stated they are not full years and what amount I should pay to top up.
I thought hang on a min, I had a letter back in the day saying that as a mum in receipt of child benefit my NI contributions were covered by HRP as long as I continued to receive child benefit for a child under 16.  As my youngest was 11 the first of these three years, I could not understand why these years were not covered by this like all the rest since I started my family.
So up in arms and hanging on the phone I go.
However, while I held on, and held on... I noticed that it said that the forecast was for the maximum I could get and could not be increased.  Does having more than 30 other years which are full years mean the not full ones don't matter? (my first paid job was in 1987)   And why, if that is the case are they suggesting I pay to top up those years?
Any clue? bigthanks

QrizB

Stokieblokie said:

... I noticed that it said that the forecast was for the maximum I could get and could not be increased.  Does having more than 30 other years which are full years mean the not full ones don't matter? (my first paid job was in 1987)   And why, if that is the case are they suggesting I pay to top up those years?
Any clue? bigthanks

As you were born in the prevuious millennium, your current state pension entitlement is a combination of  pre-2016 and post-2016.

What exctly does your State Pension forecast say?

As one of the regulars would ask:

molerat said:

Current weekly £££.pp amount accrued up to April 2024
Number of full NI years 15-16 and earlier
Number of full NI years 16-17 and later
Tax year you reach state retirement
Any COPE amount.  If you have "You've been in a contracted-out pension scheme" on your forecast then click
here https://www.tax.service.gov.uk/check-your-state-pension/account/cope whilst logged into your tax account

If you can share these numbers, we can help you understand your options.

molerat

Child benefit credits stopped on 12th birthday from 2010.

You need to look carefully at what the pension forecast states.  The top line big green box shows what you could achieve by the time you reach state retirement age.  There will be further amounts below showing what you currently have at April 2024 and if that is below the top line amount then how many more yeas of contributions you need to make to get there or may state you cannot improve on that.  The number of years reported on here for getting the full amount vary between 28 and 50 all dependent on personal circumstances.

HMRC produce the NI statement and is a matter of fact according to the legislation, the year is not full and will cost £xx.xx to fill. How that affects your state pension is not in their remit, your pension forecast gives at least some of that detail and there is another on line tool that shows how those years would affect your pension.

Stokieblokie

Thanks for replying to me
The big green box states that I will get it in 2038 and my forecast is £221.20 a week. (obs not guaranteed and based on current law)
Estimate based on NI up to 2024 is £208.74 a week, but if I contribute another 2 years of NI that makes my forecast the £221.20 and that that is the most I can get.
So if I go just by that, as long as a continue in my current job for another couple of years I can't improve on that amount and those years that are not full years don't make any difference? Just wanted to be sure as I don't want to top them up for nothing.

That's before I've started trying to trace workplace and personal pensions aargh
thanks for your help

molerat

So if I go just by that, as long as a continue in my current job for another couple of years I can't improve on that amount and those years that are not full years don't make any difference?

Correct, you have another 13 years to get the required 2 which will include 2024-25 so those old gaps are not worth worrying about.

Stokieblokie

thank you so much 

Brie

But do continue to check every couple of years just in case something does change!

janetm21

I have worked since aged 16,  and had 3 children so getting child benefits from 1981 to 2003. In total I have 48 full years but still £3 a week short of full pension ( just got my letter to claim). I paid £69 to top up last year. Don’t bank on getting full pension with 37 years!!!

molerat

janetm21 said:

I have worked since aged 16,  and had 3 children so getting child benefits from 1981 to 2003. In total I have 48 full years but still £3 a week short of full pension ( just got my letter to claim). I paid £69 to top up last year. Don’t bank on getting full pension with 37 years!!!

But you do have your DB pension to rely on, the one that you paid lower NI for.  Not going to fill another year ?  Even at full price the cost of the 2 combined gives a good return.