Just how useful IS HRP ?

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linclass
linclass Posts: 286 Forumite
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in Pensions, annuities & retirement planning
Morning all,
Well I applied for and have been awarded 7 years' worth of HRP. Speaking with NI earlier, the agent couldn't tell me whether my NI account was based on the old rules or the new rules. He couldn't tell me how much (in money terms) I had insufficient contributions, and would need to pay to obtain the maximum pension. So then, this HRP. What is the worth of being awarded this? I'm pretty certain it doesn't mean I only need now to pay 2 years contributions (making it 9 years), rather than the 9 years I'm expected to pay. Any experts out there that can explain please?

Thanks

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  • ajbell
    ajbell Posts: 1,151 Forumite
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    It is a treatment to relieve symptoms of the menopause
    4kWp, South facing, 16 x phono solar panels, Solis inverter, Lincolnshire.
  • Triumph13
    Triumph13 Posts: 1,730 Forumite
    First Anniversary Name Dropper First Post I've been Money Tipped!
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    Not Historic Royal Palaces?

    Joking aside, the answer is 'it's complicated'. Assuming those are the most recent years then some are pre 2016, some post. Everything will depend on what you position was at April 2016. Have you ever been in a contracted out pension scheme? What does your most recent state pension forecast (before the HRP) show?
  • LHW99
    LHW99 Posts: 4,215 Forumite
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    Does this help?
    https://www.gov.uk/home-responsibilities-protection-hrp
  • linclass
    linclass Posts: 286 Forumite
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    ajbell wrote: »
    It is a treatment to relieve symptoms of the menopause

    Must be Friday...the comedians are on form .....
  • linclass
    linclass Posts: 286 Forumite
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    Triumph13 wrote: »
    Not Historic Royal Palaces?

    Joking aside, the answer is 'it's complicated'. Assuming those are the most recent years then some are pre 2016, some post. Everything will depend on what you position was at April 2016. Have you ever been in a contracted out pension scheme? What does your most recent state pension forecast (before the HRP) show?

    Took early retirement in 2002, not worked since. State Pension starts to be paid in November. I was in a contracted out works pension, I've been drawing this since 2002. Thanks,
  • molerat
    molerat Posts: 31,855 Forumite
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    edited 11 October 2019 at 1:17PM
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    HRP will give you class 3 NI credits for each specific week you are eligible so possibly adding to your SP entitlement. What exactly does you SP forecast show ?, very detailed information needed to make any worthwhile comment.
  • Triumph13
    Triumph13 Posts: 1,730 Forumite
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    linclass wrote: »
    Took early retirement in 2002, not worked since. State Pension starts to be paid in November. I was in a contracted out works pension, I've been drawing this since 2002. Thanks,
    If you were contracted out then the odds are that your 2016 figure will always be old scheme. The pre 2016 years of HRP will get that up to the full old SP of £129.20 a week if you aren't already there. If your HRP covers the most recent 3 years ie 16/17, 17/18 and 18/19 then that's 3 of the 8.2 years difference between old and new SP. There would then be 5 left to buy assuming you ignore the 0.2 as it would cost a full year's NIC but only yield £36 a year of pension after basic rate tax.
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