NI Pay extra to increase my State Pension help

oliveoil54

I am 70, after watching Martin’s show last night I had a look to see what my NI Situation is.
I decided to retire early to look after my husband with Cancer & then Dementia. I had 3 years 2011 to 2014 when he had Lymphoma & Stem Cell Transplant, then from 2015 early on set Dementia/Alzheimer’s till death late in 2020. I didn’t know about claiming Carer’s Credits to top up my National Insurance Top Up Credits. But just been told by Carer’s Allowance Team I can’t claim retrospectively!
I found out I would be approx £60 a month better off if I topped up.
But I would need to pay nearly £10,000 to top up to my full State Pension! 

So according to my calculations I would only break even in 14 years when I’m 84? I already have the State Pension, plus my own small private pensions & my late husband’s Works Pension.
I have £10,000 saved, but my question is would I be better off spending the money on topping up for an extra £60 p month in my Pension? Or spending the money on things like holidays or towards a new car, things that I want to do now whilst I am still able to?

molerat

kimwp said:

I think if you are already claiming your state pension, you can no longer top it up. 

Incorrect.

oliveoil54 said:

I am 70, after watching Martin’s show last night I had a look to see what my NI Situation is.
I decided to retire early to look after my husband with Cancer & then Dementia.
I found out I would be approx £60 a month better off if I topped up.
But I would need to pay nearly £10,000 to top up to my full State Pension! 

So according to my calculations I would only break even in 14 years when I’m 84? I already have the State Pension, plus my own small private pensions & my late husband’s Works Pension.
I have £10,000 saved, but my question is would I be better off spending the money on topping up for an extra £60 p month in my Pension? Or spending the money on things like holidays or towards a new car, things that I want to do now whilst I am still able to?

That does not sound right, £60 per month - the pension is paid 4 weekly not monthly - for £10K is not possible.  Voluntary contributions usually break even in under 3 years - £10K would buy something like £75+ per week.  If you post up some anonymous info someone will help

Current weekly £££.pp amount.
Number of full NI years 15-16 and earlier
Number of full NI years 16-17 and later
Tax year you reached state retirement
Were you in a contracted-out pension scheme - something like NHS, local government, civil service ?
Years which show not full and prices

oliveoil54

molerat said:

kimwp said:

I think if you are already claiming your state pension, you can no longer top it up. 

Incorrect.

oliveoil54 said:

I am 70, after watching Martin’s show last night I had a look to see what my NI Situation is.
I decided to retire early to look after my husband with Cancer & then Dementia.
I found out I would be approx £60 a month better off if I topped up.
But I would need to pay nearly £10,000 to top up to my full State Pension! 

So according to my calculations I would only break even in 14 years when I’m 84? I already have the State Pension, plus my own small private pensions & my late husband’s Works Pension.
I have £10,000 saved, but my question is would I be better off spending the money on topping up for an extra £60 p month in my Pension? Or spending the money on things like holidays or towards a new car, things that I want to do now whilst I am still able to?

That does not sound right, £60 per month - the pension is paid 4 weekly not monthly - for £10K is not possible.  Voluntary contributions usually break even in under 3 years - £10K would buy something like £75+ per week.  If you post up some anonymous info someone will help

Current weekly £££.pp amount.
Number of full NI years 15-16 and earlier
Number of full NI years 16-17 and later
Tax year you reached state retirement
Were you in a contracted-out pension scheme - something like NHS, local government, civil service ?
Years which show not full and prices

Thank you for your prompt reply I’ve attached the years I’ve paid in full & what it says I owe? Current weekly rate £206, mine & my late husband’s works pensions were with British Aerospace & yes I think they did contract out, but can’t remember the details. Reached State Pension age Nov 2019. 

molerat

Exactly £206, no pence?  From that you need 3 years to get the full pension amount so it will cost you £2500. 2 will add £6.32 per week each and the third will top up to £221.20.  You can only use those final 3 years, 2015-16 and earlier will not add to the pension .  You now need to contact The Pension Service for them to write to you, as long as you have contacted them before 5 April the window should stay open.  It could take up to a year for the new amount to come into payment but it will be backdated to the receipt of your contributions.

oliveoil54

molerat said:

Exactly £206, no pence?  From that you need 3 years to get the full pension amount so it will cost you £2500. 2 will add £6.32 per week each and the third will top up to £221.20.  You can only use those final 3 years, 2015-16 and earlier will not add to the pension .  You now need to contact The Pension Service for them to write to you, as long as you have contacted them before 5 April the window should stay open.  It could take up to a year for the new amount to come into payment but it will be backdated to the receipt of your contributions.

Yes think it was about £00.07, didn’t realise you’d need the exact sum. Thankyou so much for your advice, lm not normally stupid, but do find the tax forms totally confusing! I’ll wait a few days till the effect of Martin’s recent show has worn off, as they are quoting over an hour’s wait on their telephone line! Once again thanks for taking the time to help me out!

molerat

The exact figure decides how much the final year is worth.  The first 2 will give £6.32 each and the third only £2.49.  Buying 2 will take 130 weeks to recover the outlay gross, buying the 3 will take 163 weeks.  That is of course ignoring the inflationary uplifts each year.

MallyGirl

oliveoil54 said:

molerat said:

Exactly £206, no pence?  From that you need 3 years to get the full pension amount so it will cost you £2500. 2 will add £6.32 per week each and the third will top up to £221.20.  You can only use those final 3 years, 2015-16 and earlier will not add to the pension .  You now need to contact The Pension Service for them to write to you, as long as you have contacted them before 5 April the window should stay open.  It could take up to a year for the new amount to come into payment but it will be backdated to the receipt of your contributions.

Yes think it was about £00.07, didn’t realise you’d need the exact sum. Thankyou so much for your advice, lm not normally stupid, but do find the tax forms totally confusing! I’ll wait a few days till the effect of Martin’s recent show has worn off, as they are quoting over an hour’s wait on their telephone line! Once again thanks for taking the time to help me out!

you can register for a callback.

Here’s the form you need from DWP in order to register that you want a call back about boosting your state pension. Do this and if they don’t get back before 5 April deadline you’re fine… https://secure.dwp.gov.uk/request-a-call.../contact-form

Sarahspangles

oliveoil54 said:

molerat said:

Exactly £206, no pence?  From that you need 3 years to get the full pension amount so it will cost you £2500. 2 will add £6.32 per week each and the third will top up to £221.20.  You can only use those final 3 years, 2015-16 and earlier will not add to the pension .  You now need to contact The Pension Service for them to write to you, as long as you have contacted them before 5 April the window should stay open.  It could take up to a year for the new amount to come into payment but it will be backdated to the receipt of your contributions.

Yes think it was about £00.07, didn’t realise you’d need the exact sum. Thankyou so much for your advice, lm not normally stupid, but do find the tax forms totally confusing! I’ll wait a few days till the effect of Martin’s recent show has worn off, as they are quoting over an hour’s wait on their telephone line! Once again thanks for taking the time to help me out!

I wouldn’t wait a few days, it’s only going to get busier as the deadline looms.

p00hsticks

oliveoil54 said:

molerat said:

Exactly £206, no pence?  From that you need 3 years to get the full pension amount so it will cost you £2500. 2 will add £6.32 per week each and the third will top up to £221.20.  You can only use those final 3 years, 2015-16 and earlier will not add to the pension .  You now need to contact The Pension Service for them to write to you, as long as you have contacted them before 5 April the window should stay open.  It could take up to a year for the new amount to come into payment but it will be backdated to the receipt of your contributions.

Yes think it was about £00.07, didn’t realise you’d need the exact sum. Thankyou so much for your advice, lm not normally stupid, but do find the tax forms totally confusing! I’ll wait a few days till the effect of Martin’s recent show has worn off, as they are quoting over an hour’s wait on their telephone line! Once again thanks for taking the time to help me out!

the effect won't wear off, it'll get worse. 
We've already been through this scenario once before a couple of years ago, before they extended the deadline - I can't imagine that they will do that again.  

Silvertabby

p00hsticks said:

oliveoil54 said:

molerat said:

Exactly £206, no pence?  From that you need 3 years to get the full pension amount so it will cost you £2500. 2 will add £6.32 per week each and the third will top up to £221.20.  You can only use those final 3 years, 2015-16 and earlier will not add to the pension .  You now need to contact The Pension Service for them to write to you, as long as you have contacted them before 5 April the window should stay open.  It could take up to a year for the new amount to come into payment but it will be backdated to the receipt of your contributions.

Yes think it was about £00.07, didn’t realise you’d need the exact sum. Thankyou so much for your advice, lm not normally stupid, but do find the tax forms totally confusing! I’ll wait a few days till the effect of Martin’s recent show has worn off, as they are quoting over an hour’s wait on their telephone line! Once again thanks for taking the time to help me out!

the effect won't wear off, it'll get worse. 
We've already been through this scenario once before a couple of years ago, before they extended the deadline - I can't imagine that they will do that again.  

There will be those shouting for another extension, unlikely to be given.

There must be more than the couple of people I know who have deliberately left it right to  the wire, in order to accrue as much savings interest as possible before divvying up.