What if the state pension rules change?

Jotch70

Hi all, first post here and hoping to get some advice.

I’m due to receive my state pension in 2037 (I’m 54), and I have 23 years of contributions currently. I will not be paying any more NI as I am not in work and almost certainly won’t be in the future. (I have a couple of properties and can just about get by on the rental income they bring in). So it would seem that I’m the ideal case for filling in the NI gaps - 12 years to make up and in my mid-fifties, but I just can’t decide whether I should.

My main concern though is this: I know no one can predict the future as far as the state pension goes, but is it not possible that by the time I reach pension age the whole qualification criteria could have changed (means tested etc) and my full 35 years of contributions may not represent what they currently would?

Also, if I were not to fill the gaps now, as I have just over 12 years to go until I receive my pension and the rules after 5 April will return to only being able to pay the previous six years, I’d assume I’d still have enough time to fill my remaining 12 years over time anyway?

Any help would be hugely appreciated.

eskbanker

Have you checked your state pension forecast to ascertain what your current entitlement is, and how much you can improve it to?  35 years is rarely the correct answer....

sammyjammy

Don't assume you will only need 35 years for starters, that rule only applies to those fully under NSP, not transitional people like yourself.

molerat

Firstly 35 years is of no relevance to you, have you checked your forecast to see how many more years you actually need ?

With more than one property you may, and that is a stretched may, be able to pay class 2 contributions - have you explored that avenue ?

I think means testing is a long way off, one of those political suicide measures that I doubt any party is really considering.

Jotch70

Thanks for the replies. I should have mentioned that I went through the govt site to get my forecast.  With the 23 years I currently have it says I would get £147 p/w, and it tells me that I need 35 years to get the full amount in 2037 (currently £221 p/w). So under the current rules I’ll make back the £10k when I’m 70. As I say it seems a no-brainer but it’s a big outlay nonetheless. 

squirrelpie

"is it not possible that by the time I reach pension age the whole qualification criteria could have changed"

Well, yes, it is possible, but it's fairly unlikely and the government have said they'll give plenty of warning of any changes, so it's a bit paranoid to worry about it unduly.

And yes, you should be able to fill the missing years later if you wish. The cost will increase slightly every year, but hopefully so will your income.