Thread: UK NI contributions question. Advice needed.

Fcuk if I know which forum to submit this. Anyway I sent off for information as to whether I'd contributed enough over the years to get my full State Pension in just over 2 years time.
When I left the UK in 2005 I'd been paying for 35 years. I checked on the Gov web site and it said I get the full pension. On asking for a print out they sent me this

asking if I want to make these voluntary contributions. My question is 'if I pay these contributions what do I stand to gain, or lose come to that?'

In the letter it stated

You currently have 38 years NI contributions up to 5 April 2015.

I'd appreciate all advice thanks.

Dunno your age, but it seems to make a difference, try starting here:

https://www.gov.uk/voluntary-nationa...ions/deadlines

More here:


Qualifying years to get full basic State Pension

Do you need to top up your National Insurance contributions? | nidirect

This depends on when you reach State Pension age. The number of qualifying years needed for a full basic State Pension for men and women is the same.
men born before 6 April 1945 need 44 qualifying years
men born on or after 6 April 1945 need 30 qualifying years
women born before 6 April 1950 need 39 qualifying years
women born on or after 6 April 1950 need 30 qualifying years

Originally Posted by nidhogg

Dunno your age

30/09/1952

Originally Posted by nidhogg

men born before 6 April 1945 need 44 qualifying years men born on or after 6 April 1945 need 30 qualifying years women born before 6 April 1950 need 39 qualifying years women born on or after 6 April 1950 need 30 qualifying years

This is what is written in my letter.

A new State Pension scheme is being introduced on 6 April 2016.

People reaching State Pension age after this date will get the new State Pension. That is men born on or after 6 April 1951 and women born on or after 6 April 1953.

To get the New State Pension you will need at least 10 qualifying years on your NI contribution record when you reach State Pension age. This does not have to be 10 qualifying years in a row.

The current State Pension will continue to be paid to people already getting it and to people who reach State Pension age before the new scheme begins in April 2016.

This is the clearest description I've found of how the state pension works at the moment.


State pensions: how much will you get? - Money Saving Expert

To get the New State Pension you will need at least 10 qualifying years on your NI contribution record when you reach State Pension age. This does not have to be 10 qualifying years in a row.

Darn, I've only got 9.
Does this mean I'll get nothing?

Originally Posted by stroller

To get the New State Pension you will need at least 10 qualifying years on your NI contribution record when you reach State Pension age. This does not have to be 10 qualifying years in a row.

Darn, I've only got 9.
Does this mean I'll get nothing?

No it means that you get the reduced rate pension

Originally Posted by DrB0b

This is the clearest description I've found of how the state pension works at the moment.

Thanks for that link Bob. I'm still unsure whether paying 'voluntary contributions' will benefit me. They want a little over 6000 Quid but don't tell me what that will give me extra on my weekly payout. IE how many weeks will it take to recoup that 6000 Quid?

Originally Posted by Pragmatic

When I left the UK in 2005 I'd been paying for 35 years. I checked on the Gov web site and it said I get the full pension.
In the letter it stated

You currently have 38 years NI contributions up to 5 April 2015.

I'd appreciate all advice thanks.

Originally Posted by nidhogg

More here:


Qualifying years to get full basic State Pension

Do you need to top up your National Insurance contributions? | nidirect

This depends on when you reach State Pension age. The number of qualifying years needed for a full basic State Pension for men and women is the same.
men born before 6 April 1945 need 44 qualifying years
men born on or after 6 April 1945 need 30 qualifying years
women born before 6 April 1950 need 39 qualifying years
women born on or after 6 April 1950 need 30 qualifying years

Originally Posted by Pragmatic

Originally Posted by DrB0b

This is the clearest description I've found of how the state pension works at the moment.

Thanks for that link Bob. I'm still unsure whether paying 'voluntary contributions' will benefit me. They want a little over 6000 Quid but don't tell me what that will give me extra on my weekly payout. IE how many weeks will it take to recoup that 6000 Quid?

According to your own post and Nidhogg's post, you are already entitled to the full pension. If that's the case, there's no point in paying for any voluntary contributions. It will not benefit you at all. You will just lose your 6000 quid.

From my understanding I do qualify for the basic State Pension of, currently, £115.95 per week. But if I pay the extra contributions that will qualify me to get an increase over the basic sum. Or am I wrong? http://www.which.co.uk/money/retirem...on-will-i-get/

Originally Posted by Pragmatic

From my understanding I do qualify for the basic State Pension of, currently, £115.95 per week. But if I pay the extra contributions that will qualify me to get an increase over the basic sum. Or am I wrong? http://www.which.co.uk/money/retirem...on-will-i-get/

If you're living in the UK you'll qualify for the minimum pension top up anyway which will give you £130 ish, if you subsequently move out of Blighty you'll loose that straight away, but if you qualify for the full amount you keep the full amount, so if you are upping stumps you're best paying the extra to keep your full pension.

So if I pay 6000 Quid how may weeks will it take to recoup that sum? I know that State Pensions are frozen as of when one leaves the UK. In 2005, when I left, I believe the basic weekly rate was about 95ish Quid per week.

Originally Posted by Pragmatic

So if I pay 6000 Quid how may weeks will it take to recoup that sum? I know that State Pensions are frozen as of when one leaves the UK. In 2005, when I left, I believe the basic weekly rate was about 95ish Quid per week.

I think I'm right in saying that your pension can't be backdated to before you were 65 so you will get the pension rate that's applicable at your retirement age regardless as long as NI was paid, but you might want to check that out for certain.
As far as recouping the 6k goes, how long do you think you'll live? Divide the number of weeks you hope to live by 6k and that's the magic number.
By my reckoning it's 240 weeks, which is tight.

Originally Posted by Stinky

As far as recouping the 6k goes, how long do you think you'll live? Divide the number of weeks you hope to live by 6k and that's the magic number. By my reckoning it's 240 weeks, which is tight.

Thanks

I was putting myself in your situation and calculating

Under the new rules I believe you can cash in early ???

The Pensions Advisory Service

https://www.pensionwise.gov.uk/pension-pot-options

Maybe best until your of pension age for best returns .

Originally Posted by Pragmatic

I know that State Pensions are frozen as of when one leaves the UK. In 2005, when I left, I believe the basic weekly rate was about 95ish Quid per week.

I'm wrong, the basic rate when I reach 65 is whatever it is at the time. But making the extra contributions should increase that, which is what I can't fathom out.

State Pension calculator

https://www.gov.uk/calculate-state-p.../y/amount/male

Originally Posted by Bogon

Originally Posted by stroller

Darn, I've only got 9. Does this mean I'll get nothing?

You will get 9/30 of the total pension.

So if I pay 49 years of contributions will my pension amount be 49/30 ?

NO!!!!!!!!!!!

Confusing ain't it

Originally Posted by Pragmatic

So if I pay 49 years of contributions will my pension amount be 49/30 ?

You only have to pay in for 30 years to receive the full state pension.

"You need 30 qualifying years of National Insurance contributions or credits to get the full basic State Pension. This means for 30 years at least one of the following applied to you:..."

Source - https://www.gov.uk/state-pension/eligibility

I would take time to go through this link. Some really good information in there.

Originally Posted by Bogon

You only have to pay in for 30 years to receive the full state pension.

I remember it being changed to 30 years about 9 or 10 years ago...Didn't the Tories do an about turn on this?

Think yourself lucky. It used to be 40 years!!