Thread: UK NI contributions question. Advice needed.

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/

^ 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!

Originally Posted by Pragmatic

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

Originally Posted by Neverna

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

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

[QUOTE=Pragmatic;3031446]

Originally Posted by Pragmatic

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.

Originally Posted by 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.

New State Pension changes explained | Age UK

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

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.

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.

Try this

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

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.

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.

Originally Posted by Bogon

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.

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?

Maybe worth a trip down to have a chat.

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

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.

Originally Posted by Bogon

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.

^ Interest, and possible other penalties.

Originally Posted by nidhogg

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?

Maybe worth a trip down to have a chat.

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

This is better

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

Originally Posted by Chittychangchang

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!

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.

Originally Posted by Seekingasylum

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?