missing NI contributions for state pension

p00hsticks

dinosaur66 said:

i have been a self employed sole trader from school -for some reason my first full year of national insurance on hmrc starts 1981/82 tax year but i never started trading to end of 82  

Until 2010 (when the total number of years needed was reduced) everyone automatically got creditted with the years they turned 16,17 and 18, which probably explains it......

molerat

dinosaur66 said:

ok thank you all for jumping down my throat

i stand corrected

i thought state pension was same for everyone if you reach pension age after 2016 ie 35 years

never new different rules for different jobs

i have been a self employed sole trader from school -for some reason my first full year of national insurance on hmrc starts 1981/82 tax year but i never started trading to end of 82  

my HMRC  pension  forecast says something to the effect of full 35 years contributed   -maximum years reached  / you will receive a forecast of £221.20 carry on paying NI after this if working but it will not increase ammount you will receive.

At April 2016 you were given the higher £ of the old or new calculations applicable to your history.  Being self employed you would not have earned any S2P or have a COPE deduction meaning your calculation would be based on the new scheme so your number of years would coincidentally be 35. Not different rules for different jobs but it generally works that way for self employed, housewives or those with their pre 2016 history based on credits.

LHW99

As well as a maximum of 49(ish) years, some people have achieved max NSP with less than 30 years (as low as 24?). In addition, some people who have the maximum NSP get a bit more because of pre-2016 S2P / ASP.

It's why everyone (currently) is recommended on here to check their entitlement directly at gov.uk

financiallycurious

So, if I might intrude on this debate. I took early retirement at 55, 10 years ago now and have not paid NICs since. On checking my state pension I am advised that although I had previously accrued 36 full years (which I foolishly thought was enough), I am now facing a significant shortfall in my state pension. I can buy back the last 10 years apparently and this will restore me to the full amount. 

Is this what I should have expected?

Thanks for any advice.

eastcorkram

financiallycurious said:

So, if I might intrude on this debate. I took early retirement at 55, 10 years ago now and have not paid NICs since. On checking my state pension I am advised that although I had previously accrued 36 full years (which I foolishly thought was enough), I am now facing a significant shortfall in my state pension. I can buy back the last 10 years apparently and this will restore me to the full amount. 

Is this what I should have expected?

Thanks for any advice.

What does your forecast tell you?

Sarahspangles

If you retired in 2015 that was before the New State Pension started, and assuming you started a private pension into payment at the time presumably you were happy with what you’d contributed and would be receiving. Being able to boost your state pension closer to the full New State Pension is a bonus. If you’re considering this you need to get a move on and check your forecast. Don’t just assume you need to buy all ten years unless that is confirmed. I had 28 years under the old system and only needed another eight, post April 2016

molerat

financiallycurious said:

So, if I might intrude on this debate. I took early retirement at 55, 10 years ago now and have not paid NICs since. On checking my state pension I am advised that although I had previously accrued 36 full years (which I foolishly thought was enough), I am now facing a significant shortfall in my state pension. I can buy back the last 10 years apparently and this will restore me to the full amount. 

Is this what I should have expected?

Thanks for any advice.

Quite usual if you were in a contracted out pension which, being able to retire at 55, you most likely were.

With already in excess of 35 pre 2016 years you will only be able to fill gaps back to 2016-17.  You may be able to fill those gap on line without speaking to anyone but if that option is not available you will need to arrange a callback.  Sooner rather tan later, years 2018-19 and earlier cease to be available after 5 April.  Request a call back to pay voluntary National Insurance contributions - GOV.UK

I very much doubt 10 years will be necessary. If you post up some anonymous information from your forecast someone will give you some pointers.

Current weekly £££.pp amount up to April 2024.
Number of full NI years 15-16 and earlier = 36 ?
Number of full NI years 16-17 and later  = 0 ?
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
Years which show not full and prices

Secret2ndAccount

Molerat is the expert, and explains things very clearly. Your best bet is to answer his questions.
For a quick estimate, each year of NI you pay (costs about £900, sometimes less) will increase your pension by £6.32 per week, up to the limit of £221.20. So, for example, if you are currently at £180/wk, you would buy 6 or 7 years to get you up to the max.
Even at age 65, it's a bargain. You will have your money back, and more, before you are 70. After that, it's all profit.
You need to get on with this, yesterday! April 6th, the price goes up, and some years become unavailable.