State pension

[vmaxv4]

Cheers..
Checked mine 41yrs contributions No gaps.

[BeamishStout]

If you have gaps in your NI record you can pay extra to fill those gaps whenever you want to.
But you can’t pay for NIC’s you expect to miss in the future, just for what you’ve already missed.

Yes agreed which is why I will either add extra years when the become 'due' as it were or wait until 63+ before stumping up for 3 missing years contributions if I decide to do that (and I am still alive and kicking ).

In my case its not so much missing years (as I have been working for 36 years paying NICs) but rather those years where I was contracted out affecting my pension entitlement.

[RobertT]

Cheers..
Checked mine 41yrs contributions No gaps.

But that doesn't necessarily mean you'll definitely get the full rate of the new state pension. If you've spent a long time contracted out of the state second pension pre April 2016, there's a good chance you might not.

This explains things quite well I think: http://paullewismoney.blogspot.co.uk/20 ... nsion.html" onclick="window.open(this.href);return false;

[stephen500]

Cheers..
Checked mine 41yrs contributions No gaps.

But that doesn't necessarily mean you'll definitely get the full rate of the new state pension. If you've spent a long time contracted out of the state second pension pre April 2016, there's a good chance you might not.

This explains things quite well I think: http://paullewismoney.blogspot.co.uk/20 ... nsion.html" onclick="window.open(this.href);return false;

Robert T is spot on. I have no gaps. That is not the point. As RT says, if contracted out for any lenght of time, your pension will be reduced. Mine was to £120. But for each year after 2016 it will rise again by £4.45 (approx) per year. So if you have enough years to go, you may end up with a full state pension again. Or if you leave work before state pension age, you can pay class 3 stamp at £733 per year till you paid enough to get you to a full state pension

[vmaxv4]

Cheers..
Checked mine 41yrs contributions No gaps.

But that doesn't necessarily mean you'll definitely get the full rate of the new state pension. If you've spent a long time contracted out of the state second pension pre April 2016, there's a good chance you might not.


This explains things quite well I think: http://paullewismoney.blogspot.co.uk/20 ... nsion.html" onclick="window.open(this.href);return false;

As I don't plan on retiring until 64/65 ish. I'm up to full rate of state pension. And that is based on 8 "enough years to go"..

[vmaxv4]

You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2016
£121.85 a week
Forecast if you contribute another 8 years before 5 April 2025
£155.65 a week
£155.65 is the most you can get

[RobertT]

Vmax you’ve illustrated perfectly how being contracted out can affect the amount of state pension people are likely to get, and why it’s important to get a forecast and factor it into your plans. It’s a very personal thing based on age and work history and can vary quite drastically between individuals.

You’ll have to build up 49 years of NIC’s before you qualify for a full state pension, while for others it’ll only be 35. Although you might find that you were automatically credited with 3 qualifying years when you were 16 regardless of whether you were actually working or not, I know I was! But I think that was scrapped for anybody reaching 16 from 2010 or 2011?

Personally I should hit the maximum SP level just before I reach 55, which will equate to 39 qualifying years or 36 actual working years.

[vmaxv4]

49 years of contributions, makes me feel old.;(

[paulp]

Can you sign on for jsa if you leave at 60 they should then credit your nics

[BeamishStout]

Or if you leave work before state pension age, you can pay class 3 stamp at £733 per year till you paid enough to get you to a full state pension

Yes should have acknowledged your post as well

This is exactly the situation before me approaching my 59th birthday in early April.

This decision for me will be made between 60-66 either on a yearly basis or after 3 years have elapsed when (by that time) I know that I have accrued enough of the necessary contributions for the max state pension should I stump up.

[GEZ61]

Good evening guys
In my case I have retired early back in 2009 at 53 ,so as have been mentioned I can give an account based on my own circumstances. I am now aged 60 and asked for a pension forecast ,and initially confused by the information the help desk had given. I asked them about why do I need to top up the post 2016 rate of 155.25 when I have 37 years in national insurance contributions .To add to the confusion I had asked, having grasped the £122.50 should be counted on as the starting amount which includes the 119.25 basic pension which is credited against 30 years NIC,s ,whether the class 3 A NIC,s can be used to fill the gaps from the years 2009- 2015 but here is when a person cannot buy the cheaper rates if the foundation amount is based on the old pension basic rate as it requires only the 30 years to qualify.
The 37 years can be carried over into the New State Pension and £4.45 per year can be bought for up to state pension age of 66 .Each £4.45 is a multiple of 35 years.so I am able to add an extra 6 years onto the £122.50 to achieve £149.20
I hope this helps to clarify the way the calculations have been introduced by the DWP

[GEZ61]

Edit
As above I have stated Class 3A NICs as it should be Class 3 NIC s .Class 3A are used after retirement age to buy extra pension