UK State Pension Top Up Advice Needed

vozfernlee

Would really appreciate some advice.

I live abroad and based on my CF83 results I am eligible for class 2 contributions for 7*pre-2016 years and 8*post-2016 years.

2024-2025 pension estimate is £142.44

Qualifying years = 24 and these are all pre-2016

My COPE is £54.39 (Thanks for the link molerat)

I think my pension forecast is based on the old rules and that my starting amount is £142.44.

My thoughts are that the best option is 5*Pre-2016 at a rate of £5.65 and 8*Post-2016 at a rate of £6.32 which will give me the full pension of £221.20.

All figures given at up to April 2024 rates.

Of the pre-2016 years I will just purchase the cheapest 5 of the 7 available

Any help really appreciated.

Thanks

molerat

Buying 6 pre 2016 +7 post would leave you 61p short so yes to the 5+8.

vozfernlee

I'd calculated it at 62p

The post-2016 years are slightly more expensive but payback is just under 6 months so a no brainer.

Thanks very much molerat for the fast response - really appreciated.

vozfernlee

Based on discussions with the FPC and with some help here (thanks to molerat) I paid the necessary NI contributions required to get a full pension, but after the NI record was updated by HMRC the online forecast stated that I needed to pay another year of contributions to get the full pension.

Puzzled, I checked the NI record and the 2018-2019 contribution I'd paid was not showing. Assuming this must be the issue, I contacted HMRC who updated the record which is now correct online. However the online forecast STILL says I need to pay another full years of contributions to get the full pension.

I'd appreciate anyone who can explain why that might be - happy to provide further information if helpful.

Dazed_and_C0nfused

vozfernlee said:

Based on discussions with the FPC and with some help here (thanks to molerat) I paid the necessary NI contributions required to get a full pension, but after the NI record was updated by HMRC the online forecast stated that I needed to pay another year of contributions to get the full pension.

Puzzled, I checked the NI record and the 2018-2019 contribution I'd paid was not showing. Assuming this must be the issue, I contacted HMRC who updated the record which is now correct online. However the online forecast STILL says I need to pay another full years of contributions to get the full pension.

I'd appreciate anyone who can explain why that might be - happy to provide further information if helpful.

Does it say you need to pay or that the year is available to pay?

How much is your accrued pension showing as?

squirrelpie

vozfernlee said:

Puzzled, I checked the NI record and the 2018-2019 contribution I'd paid was not showing. Assuming this must be the issue, I contacted HMRC who updated the record which is now correct online. However the online forecast STILL says I need to pay another full years of contributions to get the full pension.

Is it simply a case that the NI record has been updated by one organization, but the pension forecast has not yet been updated by another organization? Maybe wait a bit to see if it changes, or give them a call and check.

vozfernlee

Thanks for the replies. 

The online forecast states:

"You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2024 is £224.43 a week

Forecast if you contribute another year before 5 April 2026  is £230.25 a week

£230.25 is the most you can get"

and as I said previously it stated exactly the same before the 2018-2019 year was added.

Based on what I have read here, the forecast should update almost immediately after the NI record is updated  - is this not correct? The NI record was actually updated 3 weeks ago.

I will obviously need to contact the PFC but based on previous calls I 'd like to be prepared with as much information as possible first.

I just do not understand how adding another post-2016 full year contribution would not have filled the pension gap.