Means Testing State Pension

Leafy437

In a bit of a quandary reference buying missed NI contributions. I’m due my pension in January and I was going to buy six years worth of missed contributions as I retired in 2015, at 55yr. I have a public pension of approximately 24k (army) and now with all the talk of means testing the state pension, I’m worried about buying the missing years to then possibly losing it if I don’t meet the means testing threshold. 

Obviously, I’m aware it’s a crystal ball scenario, but wondering if anyone has an in depth knowledge, or aware of the likely outcome for means testing that could offer any advice on what to do next?

Dazed_and_C0nfused

Leafy437 said:

In a bit of a quandary reference buying missed NI contributions. I’m due my pension in January and I was going to buy six years worth of missed contributions as I retired in 2015, at 55yr. I have a public pension of approximately 24k (army) and now with all the talk of means testing the state pension, I’m worried about buying the missing years to then possibly losing it if I don’t meet the means testing threshold. 

Obviously, I’m aware it’s a crystal ball scenario, but wondering if anyone has an in depth knowledge, or aware of the likely outcome for means testing that could offer any advice on what to do next?

Which political party is it that is proposing to means test the State Pension 🤔

The current tax system does a decent job already, not means testing as such but not a million miles away.

Brie

Well when I polish up my crystal ball I see that they won't back date any changes so people who are already getting their pension won't have it taken away.  And it will continue to increase much as it has in the past.  They will also need to give a good long period of warning - just look at how much time was given to the WASPI situation - 10? 15? years advance warning??  

As for the rest - I see a tall dark stranger in your future....a soul mate perhaps?  Or your new neighbour's bull mastiff??  Won't be a cat as they can't really be considered to be tall.......

Beeblebr0x

Can see any government means-testing the state pension after they've encouraged people to plug any gaps in their NI contributions 

dunstonh

and now with all the talk of means testing the state pension

What talk? - please provide your source for this.

The Government couldn't remove the winter fuel allowance without a backlash.  Do you honestly believe that means testing the state pension would get through parliament?

I’m worried about buying the missing years to then possibly losing it if I don’t meet the means testing threshold. 

There isn't a hint that means testing will be applied and as D&C above states, higher earners pay back around half of it in taxes  (loss of personal allowance and additional rate band).

Obviously, I’m aware it’s a crystal ball scenario, but wondering if anyone has an in depth knowledge, or aware of the likely outcome for means testing that could offer any advice on what to do next?

How can anyone know a likely outcome for something that isn't on the cards.

Leafy437

lol, okay I get it, worrying about nothing😁. I checked on line to see about purchasing, but told I to contact as and when I have six months, or less left before pension age. 

Reference the tall dark stranger, I’ll keep the wife for now.

molerat

You most certainly should not be leaving it that late to think about making payment.   Do you not have the option of making a payment on line through your on line tax account ?  Do you know how many and which years you need to pay ?

Leafy437

Checking my pension through the government gateway, I’ll receive £177.04 a week. Think each purchased year increases the weekly sum by over £6 so looking at buying six years worth (class 3) to bring it up to the max allowance. Not sure if I’m correct though🤷. Also, I was told I was contracted out whilst serving in the forces (38yrs) and hoping the £177.04 a week takes that into account?

Hopefully I’ll have time on Friday to try again on line and try to proceed with the purchase. I tried to actually speak to a person the last time and think that’s when I was told to get back in touch when I has six months left.

Leafy437

Forgot to mention, I haven’t paid NI contributions since Jan 2015 when I retired on my military pension.

molerat

Yes, the amount stated takes into account your contracted out service.  The forecast will also state the maximum you can receive which I suspect will be £216.51 - £177.04 + 6 x (£230.25 / 35).  Unless you booked a call back prior to 6th April this year you will not be able to reach the full amount and have missed out on the opportunity to buy from the other 3 years back to 2016-17.

Leafy437

Yes, that’s correct, maximum increase will achieve £216.51 a week. I’ll obviously lose 20% of it to tax, due to my military pension of 24k, but to be honest I’ll be happy with that, hopefully I’ll live long enough to make it a worthwhile payment. 

Lastly, could I ask a quick question. My friend informed me that his monthly state pension payment is just over a thousand pounds. Can that be correct as I thought the maximum weekly payment is £230.15?