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  • FIRST POST
    • smjxm09
    • By smjxm09 16th May 18, 8:31 AM
    • 522Posts
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    smjxm09
    Part year NI credits, do they count? Also part year shortfall question
    • #1
    • 16th May 18, 8:31 AM
    Part year NI credits, do they count? Also part year shortfall question 16th May 18 at 8:31 AM
    At the moment I am getting NI credits as I am now a carer. My pension statement states I need 3 more years to receive a full state pension but I quick calculation shows me that I am actually 2.5 years short. It is unlikely that I will be a carer for another 3 years so I will top up my NI shortfall when the time comes. To get the last missing 6 months would I have to pay a full year or a partial year?


    Also if I cease to be a carer part way through a financial year, which means my NI credits stop, would for example 20 weeks of NI credits count and would be worth 20/52 or again does only full year contributions count?
Page 1
    • Dox
    • By Dox 16th May 18, 9:05 AM
    • 938 Posts
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    Dox
    • #2
    • 16th May 18, 9:05 AM
    • #2
    • 16th May 18, 9:05 AM
    You need full years.
    • molerat
    • By molerat 16th May 18, 9:18 AM
    • 19,324 Posts
    • 13,529 Thanks
    molerat
    • #3
    • 16th May 18, 9:18 AM
    • #3
    • 16th May 18, 9:18 AM
    Only full years count so you need 3 years to reach the full amount
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    • mjfp509
    • By mjfp509 16th May 18, 9:30 AM
    • 153 Posts
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    mjfp509
    • #4
    • 16th May 18, 9:30 AM
    • #4
    • 16th May 18, 9:30 AM
    The 20/52 weeks do count I believe, so you would only need to buy the additional 32 weeks to get a full year.

    Look here: https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf
    • smjxm09
    • By smjxm09 16th May 18, 2:01 PM
    • 522 Posts
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    smjxm09
    • #5
    • 16th May 18, 2:01 PM
    • #5
    • 16th May 18, 2:01 PM
    This is the relevant piece


    Whatever State Pension system you come under, if you
    paid some NICs in a financial year but not enough to
    get a full qualifying year, you can make contributions
    for these extra weeks.
    For example, if you need an extra 10 weeks of
    contributions for the 2010/11 financial year to make
    up a qualifying year, it will cost you £146.50 (£14.65
    x 10) if youíre under the old State Pension system and
    £120.50 (£12.05 x 10) if youíre under the new system.

    So this seems to answer my second question.
    • molerat
    • By molerat 16th May 18, 2:11 PM
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    molerat
    • #6
    • 16th May 18, 2:11 PM
    • #6
    • 16th May 18, 2:11 PM
    Yes, the weeks count as weeks but only a full year counts towards your pension so 2.5 years will not get you 2.5 years worth of pension, only 2. If you then make up that part year to a full year by whatever means it then counts. To get that extra £2.35 worth of pension you need the full year of credits.
    Last edited by molerat; 16-05-2018 at 2:17 PM.
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    • Wicked Lady
    • By Wicked Lady 16th May 18, 10:11 PM
    • 191 Posts
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    Wicked Lady
    • #7
    • 16th May 18, 10:11 PM
    • #7
    • 16th May 18, 10:11 PM
    I have just made up 2 years on my State Pension. One of these was a full rate but I paid less for the other one as I already had a few weeks of credits - not many though!

    Worked out that I should reap the benefits after about 3 years.
    • smjxm09
    • By smjxm09 16th May 18, 11:11 PM
    • 522 Posts
    • 147 Thanks
    smjxm09
    • #8
    • 16th May 18, 11:11 PM
    • #8
    • 16th May 18, 11:11 PM
    So the missing 6 months worth £122 per year or £97.67 after tax would cost me around £761 and take 8 years to recoup taking me to 74 years old. Not quite the bargain it first seems.
    • molerat
    • By molerat 16th May 18, 11:32 PM
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    molerat
    • #9
    • 16th May 18, 11:32 PM
    • #9
    • 16th May 18, 11:32 PM
    Considering that £761 would get you £24 after tax with an annuity the state pension option doesn't look too bad
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    • Linton
    • By Linton 17th May 18, 9:07 AM
    • 9,736 Posts
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    Linton
    So the missing 6 months worth £122 per year or £97.67 after tax would cost me around £761 and take 8 years to recoup taking me to 74 years old. Not quite the bargain it first seems.
    Originally posted by smjxm09

    Wouldnt 6 months worth of NI would cost you 26 X £14.65=£380?
    • molerat
    • By molerat 17th May 18, 9:24 AM
    • 19,324 Posts
    • 13,529 Thanks
    molerat
    Wouldnt 6 months worth of NI would cost you 26 X £14.65=£380?
    Originally posted by Linton
    I think they are referring to paying a whole year to receive the missing half a year pension value.
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    • mjfp509
    • By mjfp509 17th May 18, 9:27 AM
    • 153 Posts
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    mjfp509
    Wouldnt 6 months worth of NI would cost you 26 X £14.65=£380?
    Originally posted by Linton
    I was just thinking that as the other person only has 32 weeks to buy to get a full year.
    • Linton
    • By Linton 17th May 18, 11:37 AM
    • 9,736 Posts
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    Linton
    I was just thinking that as the other person only has 32 weeks to buy to get a full year.
    Originally posted by mjfp509
    I think they are referring to paying a whole year to receive the missing half a year pension value.
    by molerat

    Why would you do this? The rate per year is about 52 times the cost per week. ...............................
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