Pension Advice

ScratchyCat

Ive just check my pension forecast. I need some guidance please.
It says i can get my pension from July 2045.
My forecast is the full £221.20.
It says 'forecast if you contribute another 11 years before 5th april 2045 is £221.20.'

My years 2010 to 2011 and 2017 to 2018 say year not full.
When i click on those it says 'we are checking this year to see if it counts towards your pension. We'll update your record when this is finished, you do not need to do anything.'
So if they decide that these are not full presumably i would not be able to pay these because they will be before 2019. I have submitted tax returns for these years so could this just be i didnt earn enough.

My year 2009-2010 says 'year not full'. It says pay voluntary contribution of £824.20 by 5th April. This shortfall may increase after 5th April 25.'
Is it worth me paying this one year. 
I am concerned that due to my health although i have potentially another 20 years before pension and i need at least another 11 to keep that full pension to make it to the 35 years. If i dont work due to health issues, i could loose out.

Ive just gone through to see if i can pay for this year and it says because i have gaps i cant pay online and directs me to the call back service. Shall i complete the online form for a call back to pay the voluntary ni contributions.

What details/figures will i need to supply for the non full years from my tax returns please. I am a little slow at understanding all this tax stuff.

p00hsticks

What is your current entitlement as at April 2024 ?
Forget about getting to 35 years - that target is only relevant to those born this century. Those older like you will need more or less depending on their individual records prior to 2016.

Years prior to 2016 may or may not increase your pension so with the information we have it's not possible to say if buying 2009-2010 would make any difference to your forecast. How many full years do you already have from 2015-16 and earlier ? 

The usual explanation for the 'we are checking ' message is that you were registered as self employed during those years but (I think) did not pay class 2 contributions. Would this apply to you ?

ScratchyCat said:

I am concerned that due to my health although i have potentially another 20 years before pension and i need at least another 11 to keep that full pension to make it to the 35 years. If i dont work due to health issues, i could loose out.

On the other hand if you do work for 11 out of 20 of those years, even if it's onyl in a part time job earning (in current terms) at least £123 a week you'll have spent £824 unnecessarily. 

You have a lot of time ahead available to to gain another 11 years, and this needn't necessarily be through working - if you end up claiming ESA or UC you;d get credits. 

QrizB

ScratchyCat said:

It says 'forecast if you contribute another 11 years before 5th april 2045 is £221.20.'

You need 11 years before 2045. Since that's 20 years away, there's plenty of ime to get them.

ScratchyCat said:

My years 2010 to 2011 and 2017 to 2018 say year not full.
When i click on those it says 'we are checking this year to see if it counts towards your pension. We'll update your record when this is finished, you do not need to do anything.'

Were you self-employed in those years? If so, did you pay Class 2 NI?

ScratchyCat said:

Is it worth me paying this one year. 
I am concerned that due to my health although i have potentially another 20 years before pension and i need at least another 11 to keep that full pension to make it to the 35 years. If i dont work due to health issues, i could loose out.

You will continue to get years - cheap years! - if you continue to pay Class 2 NI (or get NI credits without paying). If you stop work, you can continue to pay voluntary NI (or you might qualify for benefits that come with NI credits).
I don't see any real benefit for you in paying £824.20 now for a year, when you can get enough years in the future.

ScratchyCat

When you say what is your entitlement as at april 2024.
There is a box that says 'Estimate based on your ni record up to 5th April. £155 a week' is this what you mean.

Years up 2016 is 17 full years. 24 full years up to 2024.

I went self employed around 2009/2010 not sure exactly when. 

You might be right about class 2. I dont understand the difference between class 2 and 4 to be honest. Its all over my head. But i seem to recall my accountant may have written something about it in his letter when i submitted the tax returns. I will try to read up on this and get my records out to see what they say.

Dazed_and_C0nfused

ScratchyCat said:

When you say what is your entitlement as at april 2024.
There is a box that says 'Estimate based on your ni record up to 5th April. £155 a week' is this what you mean.

Years up 2016 is 17 full years. 24 full years up to 2024.

I went self employed around 2009/2010 not sure exactly when. 

You might be right about class 2. I dont understand the difference between class 2 and 4 to be honest. Its all over my head. But i seem to recall my accountant may have written something about it in his letter when i submitted the tax returns. I will try to read up on this and get my records out to see what they say.

In simple terms class 2 is key for State Pension (and other benefit related things).

Class 4 is really just an extra tax, paying Class 4 is of no relevance for State Pension (or other benefits).