#  >  > Living And Legal Affairs In Thailand >  >  > Doing Things Legally >  >  UK NI contributions question. Advice needed.

## Pragmatic

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.

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## nidhogg

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

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

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## 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

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## Pragmatic

> Dunno your age


30/09/1952



> 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.

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## DrB0b

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

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## 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?

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## Stinky

> 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

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## Pragmatic

> 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?

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## Neverna

> 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.





> 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
> ...





> 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.

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## 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/

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## Stinky

> 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.

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## 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.

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## Stinky

> 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.

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## Pragmatic

> 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  :Roll Eyes (Sarcastic):

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## Stinky

I was putting myself in your situation and calculating   :smiley laughing:

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## boloa

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 .

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## 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.

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## boloa

State Pension calculator

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

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## Bogon

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


You will get 9/30 of the total pension.

I'm in the same position in my late 30's. I have decided to sit back and do nothing for the next 20 years because I have no idea what rules will change, or if there will even be a pension there for me at the end.

My plan is to wait until I'm in my late 50's (if I never return to the U.K to work), see what the situation is and pay what is due then. Sounds madness, I know, but that's how I'm gonna roll the dice.

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## Pragmatic

> 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 ?  :Confused:

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## Neverna

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

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## Stinky

Confusing ain't it   ::doglol::

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## Bogon

> 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.

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## charleyboy

> 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?

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## Neverna

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

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## Greenery

From next April, 35 years of contributions are needed to get the maximum flat rate pension, up from 30 years. This is due to increased life expectancy.

 10 years is the minimum cut-off. Anyone with less contributions than that will get nothing.

http://www.ageuk.org.uk/money-matter...ges-explained/

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## Stinky

^ Ooh look at that I turned a full house of reds into half a green stack in just one hit, my healing powers are truly awesome!

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## Pragmatic

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





> NO!!!!!!!!!!!


 So why does one carry on paying NI contributions after reaching the 30 year qualifying year? There's no point, but we do.

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## Stinky

[QUOTE=Pragmatic;3031446]


> So why does one carry on paying NI contributions after reaching the 30 year qualifying year? There's no point, but we do.


Because things change, and will likely change again in our lifetime.



> From next April, 35 years of contributions are needed to get the maximum flat rate pension, up from 30 years. This is due to increased life expectancy.
> 
>  10 years is the minimum cut-off. Anyone with less contributions than that will get nothing.
> 
> New State Pension changes explained | Age UK

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## Greenery

And for jobseekers allowance contributions (and maternity pay if you are planning on getting pregnant in your 50s :/)

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## Pragmatic

I'll give up on this topic. My real question, initially, was 'do I benefit if I pay 6000 Quid in voluntary payments?' I haven't seen any evidence indicating I will so I won't bother. Thanks to all who contributed to my question.

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## Greenery

No benefit as far as I can see. It would be interesting to email them to ask what the benefit would be. They should have made it clear to you from the outset.

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## Bogon

> I'll give up on this topic. My real question, initially, was 'do I benefit if I pay 6000 Quid in voluntary payments?' I haven't seen any evidence indicating I will so I won't bother. Thanks to all who contributed to my question.


This is my point exactly. It seems that you have no option to opt out of paying once you have reached your quota. N.I contributions are not exclusive to pensions, but to other stuff like the NHS, local government funding that pays for your street lights, twice yearly bin collections and the local newspaper.

From next April you will have to pay in 35 years worth to qualify for a full state pension.

There are gonna be many rule changes and goal posts moved before I reach pension age, so I am hedging my bets and will pay what is owed when I am in my late 50's.

At this moment in life, my plans of retirement do not include the state pension (although I am fully prepared to pay what is needed to receive it when the time comes). I have made provisions to retire with assets and capital that should tie me over when the time comes.

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## Horatio Hornblower

Try this

https://www.gov.uk/calculate-state-pension

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## Chittychangchang

> I'll give up on this topic. My real question, initially, was 'do I benefit if I pay 6000 Quid in voluntary payments?' I haven't seen any evidence indicating I will so I won't bother. Thanks to all who contributed to my question.


Don't give up £6,000 is a lot of dosh.

You have the 30 qualifying years so you will receive the full state pension.

The letter you received is a standard automatically generated non enforceable demand for the lowest annual NI contributions(class 1) that wouldn't make a difference to your eligibility any how.

I know people who have received them and never paid them( mostly self-employed)

My advice invest the £6k  and wait for the pension that your entitled too.

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## Greenery

> I am hedging my bets and will pay what is owed when I am in my late 50's.


I may be wrong but I think there are time limits. For example, anyone paying for years up until this year must pay by 2023.

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## nidhogg

> I'll give up on this topic. My real question, initially, was 'do I benefit if I pay 6000 Quid in voluntary payments?' I haven't seen any evidence indicating I will so I won't bother. Thanks to all who contributed to my question.


Prag, sorry I been out of UK for close to 30 years now, so really no insight.  

one thought, is do the still have the Citizen Advice Bureau?

Maybe worth a trip down to have a chat.

(sorry, juts assuming you are still in UK?)

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## Bogon

> I may be wrong but I think there are time limits. For example, anyone paying for years up until this year must pay by 2023.


Cheers for the heads-up. Will look into it.

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## Pragmatic

> Originally Posted by Greenery
> 
> I may be wrong but I think there are time limits. For example, anyone paying for years up until this year must pay by 2023.
> 
> 
> Cheers for the heads-up. Will look into it.


If you pay by 5 April 2019 there is no penalty. I assume after that there is but it doesn't say what. The final time limit is 5 April 2023. See photo in first post.

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## Greenery

^ Interest, and possible other penalties. 




> Originally Posted by Pragmatic
> 
> 
> I'll give up on this topic. My real question, initially, was 'do I benefit if I pay 6000 Quid in voluntary payments?' I haven't seen any evidence indicating I will so I won't bother. Thanks to all who contributed to my question.
> 
> 
> Prag, sorry I been out of UK for close to 30 years now, so really no insight.  
> 
> one thought, is do the still have the Citizen Advice Bureau?
> ...


This is better

https://www.gov.uk/pensions-advisory-service

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## charleyboy

> My advice invest the £6k and wait for the pension that your entitled too.


The fookers change the goal posts at every opportunity... I'll stick with Chitty, I've got 31 years!

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## Seekingasylum

As far as I am aware, to qualify for the maximum pension after April 2016 one needs a minimum of 35 years of contributions. The flat rate to be applied under the new scheme equates to £151 per week and will be the maximum although some may qualify for more depending on special circumstances.. There are several wrinkles to this but so far I cannot see any advantage in making further payments if you already qualify since you cannot derive more than the maximum of the flat rate, albeit one increased in line with inflation depending on your residence.

The problem for many is that depending on their employment they will not qualify for the full flat rate since this is determined by the nature of your insurance contributions and whether you contracted out of the additional pension scheme which meant that you paid at a reduced NI rate. Most public servants, police, teachers, armed forces personnel were all contracted out and will NOT therefore get the full rate but shall receive a reduced rate currently estimated to be about £125 per week.

The announcement that we would all get a new, simplified, universal pension of £7,500 per annum based on full contributions was total bollocks and a mistake by the then pensions minister who didn't really understand the effects of contracting out of added pensions schemes for public workers etc.

Typical of politicians today, really, but there you go.

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## Pragmatic

> The announcement that we would all get a new, simplified, universal pension of £7,500 per annum based on full contributions was total bollocks


Thanks for that TheGent. 'Simplified'? It didn't matter what I read, it was anything but 'simplified'. May be it's just me?

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