State Pension - advice appreciated

LeeJ_2

I'm 50 (this year) and have just decided to give some thought to my retirement. If anyone can throw some light on the issues raised below I would be grateful


I have just requested a pension forecast online.

Basic Pension
It seems to forecast that I will receive a 100% basic pension if I continue to work until 65 (I have 32 qualifying years now, forecast 48 years at 65).However it also shows that I missed one year's contributions (2003). I have the chance to pay those missing contibutions now (£361).

Should I pay that missing year or will one year (out of a projected final 48 years paid up) make no difference to the final pension?

Additional Pension
I seem to be entitled to only half of the state additional pension. I used to pay into a company pension but have not done so now for about 6 years (the option is no longer available to me). I am apparantly contracted-out because I used to have a company pension. Should I have told the IR that I no longer pay into a company scheme? Would it make any difference to anything?

Graduated pension
What is this?


Final question: What is the max (total) state pension a married man could expect to receive if all conditions were met (ie all contributions paid, not contracted out)?

Thanks in advance for any help provided

CIS

The maximum basic pension is about £82 p/week at present, the Max Additional Pension is probably about £120 (contracted in with high earnings), but this varied dramtically based on Contracted In/Out status, earnings and even what date you will reach pension age. (Being a married man or single man makes no difference)

Basic Pension

You need 12 years out of the next 16 yrs, but, between 60 & 65 you get 5 years of auto credits, providing you are not at the time liable to pay class 2 or outside the uk for more than 6 months per year.
If you going to carry on working or paying voluntary NI for each yr you need 7 years by the time you are 60 if you then receive your 5 yrs of auto credits you will get 100%. Obviously if you accrue more than 7yrs by age 60, you need to rely on any auto credits less.
Whether you pay the 1 backdated year depends on if you are going to continue paying NI in some form to at least the age of 60.

Additional Pension

It isnt that you are entitled to 1/2 the possible additional pension,its not fixed it varies by earnings and NI status , its just that you have accrued a contracted out deduction , this is to account for the time you paid in to the company pension scheme instead of the state scheme;

From 1978 up until 1997, the state calculated how much AP you would have had if you where never contracted out and then cacluated a figure based on the contracted out period between 78 & 97 (C.O.D) and then they deducted the COD from the AP to arrive at an entitlement figure. This system gave you some AP even for periods you where paying in to a occupational scheme instead of the State AP scheme.

From 1997-2002 you received no AP for any periods that you where contracted out of the State AP scheme.

From 2002 State Second Pension (S2P) was introduced, this splits earnings in to three bands each revalued at different rates and then the total of three bands added to get the payable S2P for that years. If you are contracted out another calculation is carried out and the two figured deducted to arrive at the S2P for that year.

IR should know that you are not contracted out, the ex-employer should have notified them. Your forecast should carry a paragraph saying if you are currently contracted out or not.
If in doubt contact IR on switchbaord number 0191 2135000 and ask for NISPI (National Insurance Services to the Pension industry) and they'll have your current status on record.

LeeJ_2

Thanks very much for the comprehensive reply