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  • FIRST POST
    • ossie48
    • By ossie48 18th Oct 17, 11:28 AM
    • 103Posts
    • 48Thanks
    ossie48
    State pension forecast
    • #1
    • 18th Oct 17, 11:28 AM
    State pension forecast 18th Oct 17 at 11:28 AM
    Forecast 159.55 a week 32 years of full contributions, 16 years to contribute, 3 years when you did not contribute enough.

    Estimate based on NI record up to April 2016 145.88 a week

    You can make up the shortfall
    Pay a voluntary contribution of 733.20 by 5 April 2023. This shortfall may increase after 5 April 2019.

    As I'm early retired and made no contributions for the last few years is the 'voluntary contribution' above an accrual or would I have to pay all the voluntary contributions that are listed year by year. In other words 2014/15 was 722, previous year 54. Tried ringing the help line but cant get a reply.

    Cheers
Page 4
    • p00hsticks
    • By p00hsticks 11th Feb 18, 11:07 AM
    • 6,192 Posts
    • 6,624 Thanks
    p00hsticks
    Hi all, I am 55 this month and plan to retire in 2 years time. I have work and have always worked full time.

    My Gov state pension forecast says I will currently get 129.83 on my current contribution but get 159.55 if I work until 2029 which I don't want to do.

    I have 39 years of full national insurance contributions and will have a final salary defined benefits pension when I retire in 2 years time.

    I also have a COPE of 62.99 per week.

    So my question is will I get my full state pension if I only work for 2 more years and if not can I purchase more years and when is it best to do this.

    Many thanks for any help in advance
    Originally posted by LULULU1
    No, you won't get a full state pension. The two further years will add 2/35ths of the full amount (just under 10) to your starting amount.

    If you get another pension forecast when you retire you can see how many years you are short and then pay voluntary class 3 contributions for as many years up to State Retirement Age as you need to take you up to the maximum

    This guide explains it all
    https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf
    • Dazed and confused
    • By Dazed and confused 11th Feb 18, 11:47 AM
    • 2,557 Posts
    • 1,226 Thanks
    Dazed and confused
    But think carefully before buying the final year as that isn't necessarily as cost effective.

    While you are well short of the full 159.55 each year you buy will add 4.55 to your weekly State Pension payment and that is seen as a good use of the 741 it costs to buy the year. Depending on your tax position you normally get the 741 back in extra pension in about 4 years.

    But if you buy extra year(s) National Insurance and get to say 158.95, buying another year to get the full 159.55 wont be quite as attractive as you would still have to pay 741 but will really only get 60p/week in return.

    So instead of taking around 4 years to recoup your original 741 it will be more like 30 years before you see the full 741 back in increased pension.
    Last edited by Dazed and confused; 11-02-2018 at 11:50 AM.
    • molerat
    • By molerat 11th Feb 18, 1:44 PM
    • 18,570 Posts
    • 12,726 Thanks
    molerat
    I intend to do some part time work after I retire from fulltime work in 2020.
    Originally posted by LULULU1
    Just make sure you earn more than 113 per week (the "LEL", increased by inflation each year https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions) and you will get NI credits
    www.helpforheroes.org.uk/donations.html
    • LULULU1
    • By LULULU1 11th Feb 18, 7:08 PM
    • 376 Posts
    • 29 Thanks
    LULULU1
    So are you saying as long as I earn 113 per week my national insurance contributions will be all covered to give me full pension.

    Thanks
    • molerat
    • By molerat 11th Feb 18, 7:11 PM
    • 18,570 Posts
    • 12,726 Thanks
    molerat
    Pretty much. As long as you earn 52 times the LEL in a year you will be credited with a whole year. If you don't make that then each week you earn in excess of the LEL you will be credited with one week. The 113 is for 2017-18, the LEL increases each year with inflation.
    www.helpforheroes.org.uk/donations.html
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