uk ni contributions

[evadgib]

NI Related Response to a petition in my inbox this morning.

 

 

[maprao]

Yes and yes in answer to your question.

They normally only allow you to go back 6 years. 

You need 35 years for full pension which isn't great anyway  in comparison to say Germany or the US.

Register your contributions and forecast is all online now You can see as the payments get credited.  They would only allow me to do class 3 not class 2

Still worth it just incase I'm still around at 66

[Farang99]

About 5 years after I started receiving a state pension I had a letter from DWP saying I was short 3 years because I retired early, and would I like to make them up. They pointed out this would be at no cost to me as the back pay more than covered the extra payments, so I jumped at the chance.

[PerkinsCuthbert]

32 minutes ago, Sticky Wicket said:

I'm just 40 and only have about 8/9 years NI contributions as I've been here for over 11 years

Any advice on what would be the best course of action?

 

Unless you have other financial arrangements that supercede the need for a full state pension, you would do well to contact the Pension Service (now part of HMRC). They are very helpful, will pull your file and send you an exact printout of what contributions you need to make and when, to bring yourself up to date.

I'd say do it, nobody can foretell the future, but the basic UK pension could prove a useful backstop one day.

[Sticky Wicket]

19 minutes ago, PerkinsCuthbert said:

Unless you have other financial arrangements that supercede the need for a full state pension, you would do well to contact the Pension Service (now part of HMRC). They are very helpful, will pull your file and send you an exact printout of what contributions you need to make and when, to bring yourself up to date.

I'd say do it, nobody can foretell the future, but the basic UK pension could prove a useful backstop one day.

Cheers!

[evadgib]

13 hours ago, Mutt Daeng said:

Alternatively you can install the HMRC phone app which can generate the code for you rather than receiving it via SMS.

Thanks for the tip about the phone app which I have just installed and set up. Unfortunately I'm dyslexic and a bit of a luddite & haven't yet worked out how to to a pension forcast. Can you/anyone please point me in the right direction?

Thanks ????

(I'm 5 years short & would like to pay back @ class 2 rates. They fobbed me off 2 years ago but there's no harm in trying again. Class 3 was a non-starter @ 15 quid per week. I'm almost a decade away from state retirement age with 30 years in the bag)

[PerkinsCuthbert]

4 minutes ago, evadgib said:

Thanks for the tip about the phone app which I have just installed and set up. Unfortunately I'm dyslexic and a bit of a luddite & haven't yet worked out how to to a pension forcast. Can you/anyone please point me in the right direction?

Thanks ????

(I'm 5 years short & would like to pay back @ class 2 rates. They fobbed me off 2 years ago but there's no harm in trying again. Class 3 was a non-starter @ 15 quid per week)

https://www.pensionsadvisoryservice.org.uk/

[sometimewoodworker]

5 minutes ago, evadgib said:

Thanks for the tip about the phone app which I have just installed and set up. Unfortunately I'm dyslexic and a bit of a luddite & haven't yet worked out how to to a pension forcast. Can you/anyone please point me in the right direction?

Thanks ????

(I'm 5 years short & would like to pay back @ class 2 rates. They fobbed me off 2 years ago but there's no harm in trying again. Class 3 was a non-starter @ 15 quid per week. I'm almost a decade away from state retirement age with 30 years in the bag)

If you can pay class 2, which you may not be able to do, you should keep trying. 

 

Even if you can only pay class 3 which is more likely you would be extremely badly advised not to make the payments.

 

The return is about 30% per year for class 3 which is incredibly good and anyone who thinks they can do better is totally delusional. The UK pension is one of the very few things that are extremely good value for money.

 

The non-starter £15 quid a week at current pension levels increases your weekly pension by £4.69 a week so you should have paid it. 

 

If you have a terminal illness then of course you should not make any payment 

[evadgib]

21 minutes ago, PerkinsCuthbert said:

https://www.pensionsadvisoryservice.org.uk/

So after all that it isn't available via the app?

[kannot]

On 2/19/2019 at 10:34 AM, evadgib said:

Out of idle curiosity I tried to log in to a gateway account created 2 years ago while in UK but found I was unable to get in. Is this because I hadn't activated my VPN or hadn't used it in a while? I don't have a UK Mob# so doubt if I could easily open a new account.

i get a friend to do it on skype with me, yeah they send you a  stupid  pin  number , lasts about 7 days  i  think.

[sometimewoodworker]

On 2/16/2019 at 12:17 PM, steve73 said:

They want around 6.2kGBP to cover this shortfall.  The additional pension I will eventually receive (commences in 8 years time) would take c. 3 years to make up that.

But by investing the 6.2k now, I can certainly do better than the extra 40GBP per week I would receive.

So you are saying that with a £6,200 investment now that by 2026 you can generate an annual return of over £2,441. 

 

I think that your are incredibly optimistic, delusional or have no need to collect the pension. 

[PerkinsCuthbert]

9 minutes ago, evadgib said:

So after all that it isn't available via the app?

No. The HMRC app has limited usefulness, as you can see if you install it and register. If you wish to get help with your entitlements, the website I quoted above if your first stop.

[steve73]

20 minutes ago, sometimewoodworker said:

So you are saying that with a £6,200 investment now that by 2026 you can generate an annual return of over £2,441. 

 

I think that your are incredibly optimistic, delusional or have no need to collect the pension. 

When I got that forecast in 2017, I made the equivalent investment into a corporate bond that was generating over 10% pa, with a capital growth of a further 50% to 2022.  Yes, I was pretty lucky.... 

I may yet consider making up the shortfall in the future, but my main worry remains whether the state pension will still actually be paid to non-residents in 8 years time which is why I'm delaying my decision.

[evadgib]

41 minutes ago, PerkinsCuthbert said:

No. The HMRC app has limited usefulness, as you can see if you install it and register. If you wish to get help with your entitlements, the website I quoted above if your first stop.

Appreciated. I have accessed my NI record online. I'm in no hurry to top up the 5 years incase they move the goalposts again but will look at it carefully.

[BaiLao]

OP:

It's worth doing. Contact HMRC by phone/Skype:

+441912037010

Hrs:  0800 -1700 GMT

[DJ54]

On 2/16/2019 at 12:09 PM, MartinL said:

Government Gateway for your pension, you can see exactly which years are not 'full contributions' and how much you need to pay to fill

I’m from US interesting to hear about other countries systems work.

[sometimewoodworker]

1 hour ago, steve73 said:

When I got that forecast in 2017, I made the equivalent investment into a corporate bond that was generating over 10% pa, with a capital growth of a further 50% to 2022.  Yes, I was pretty lucky.... 

I may yet consider making up the shortfall in the future, but my main worry remains whether the state pension will still actually be paid to non-residents in 8 years time which is why I'm delaying my decision.

So you have an investment that by the end of 2022 will have grown from £6,200 to at least £17,183 (about 55% pa), if the company doesn't default, or a profit of £10,983. 

 

In a similar 5 year period your pension would have returned at least £12,250 and would continue with that rate of return.

 

There has been talk of excluding non-residents for years, so far the cost benefit analysis has never made this a political winner.

 

Each year you delay the cost of making up the missing years is increasing, as is the late payment surcharge. There is no guarantee that you will always be able to bring your total up to 35 years. There has been a special concession permitting going back more than 6 years though AFIK this has now finished 

[Chicken George]

On 2/16/2019 at 1:35 PM, Kwasaki said:

I thought you only needed 35 years to qualify for full UK pension.

Yes its 35 years. I had 31 1/2 3 years ago. So ive been psying class 3 to get the 35 years. Have 6 months to go.. No need to pay anymore than 35 years. 

Its only useful for your pension..  

[sometimewoodworker]

2 hours ago, evadgib said:

Appreciated. I have accessed my NI record online. I'm in no hurry to top up the 5 years incase they move the goalposts again but will look at it carefully.

At the moment it looks as if you may be able to pay £500 less than if you wait as You’ll pay different rates if you pay voluntary contributions by 5 April 2019 and there is a lower rate available for missing years between 2006 and 2010

[steve73]

15 minutes ago, sometimewoodworker said:

In a similar 5 year period your pension would have returned at least £12,250 and would continue with that rate of return. 

Not sure I follow that logic..  My pension won't get paid at all for another 8 years and so returns nothing until then.  I have plenty more opportunity to continue growing my investment outside of the NI pension system.  

 

19 minutes ago, sometimewoodworker said:

Each year you delay the cost of making up the missing years is increasing, as is the late payment surcharge. There is no guarantee that you will always be able to bring your total up to 35 years. There has been a special concession permitting going back more than 6 years though AFIK this has now finished 

But is the additional payment increasing by as much as I'm making elsewhere?

I am planning on getting another pension forecast to see how things have changed over the past couple of years.

One question I do have, is: Is my pension forecast dependent on making further minimum NI payments until normal retirement age, or does it assume that I will make no further payments?

I currently have 30 years of credits, (out of 35 or 40years?)  The forecast payment was approximately 75% of a BSP, which seems to suggest that 40 years are required.

[rixalex]

Ten years ago i back-paid ten shortfall years at class 3 rate. It was quite expensive but at that time they were saying that 30 years was sufficient for a full pension, so i went for it. They then shifted the goal posts and made it 35 years. I was starting to wonder if it was worth continuing to make up the shortfall, but when i phoned the helpline and explained my situation the chap said that they had changed the criteria needed to pay class 2 rate, and urged me to fill out a form and see if i was eligible. I was skeptical but sent the form off anyway, and a long three or four months later got a letter back saying that i was eligible and it laid out the cost per year i would have to pay - as someone has already posted on this thread. Incredibly cheap. About 150 pounds per year. I back-paid another 10 years. At that sort of rate, i'm happy to write the money off if they change the goal posts again, because nothing comes close in terms of return. I'm up to 30 years now and will pay quarterly by direct debit for current years. Probably keep doing so past 35 years in case they change the number of years for full pension again.

[Andrew Dwyer]

Yes its 35 years. I had 31 1/2 3 years ago. So ive been psying class 3 to get the 35 years. Have 6 months to go.. No need to pay anymore than 35 years. 
Its only useful for your pension..  

Not always the case .
I paid 40 years ( no gaps ) and am required to pay a further 6 years to obtain full state pension in 2028.

But, I do agree don’t pay more you need to achieve FSP after that you are throwing money away, will not affect NHS or anything according to the helpline.

Anyone having difficulty with the government gateway or the app access codes etc , here are some telephone numbers.

[Saltire]

Sorry if this has been mentioned but I don't have time to read all the posts. I considered making an application to make up a few years but decided not too. 

 

https://www.thisismoney.co.uk/money/pensions/article-5470181/Savers-wasting-money-trying-boost-incomes.html?fbclid=IwAR0C5IpTKLxiDQucL5MOY_cnspe6C0RCDTO5ZO6aF-Vad2I5X7nUkgAwq9s

 

 

[Kwasaki]

24 minutes ago, Andrew Dwyer said:

Not always the case .
I paid 40 years ( no gaps ) and am required to pay a further 6 years to obtain full state pension in 2028.

But, I do agree don’t pay more you need to achieve FSP after that you are throwing money away, will not affect NHS or anything according to the helpline.

Anyone having difficulty with the government gateway or the app access codes etc , here are some telephone numbers.

You can get a pension forecast.

They will tell you if you will be entitled to a UK gov pension.

I don't understand about you paying more if you have paid 40 years NI contributions.

I had 42 years NI and I got the full weekly pension amount that was given at that year at 65 year old. 

[Caine]

Depends how long you live after pension age, it’s a gamble if you live to 90 your quids in if you live to 66 your on a loser. Simple

[Andrew Dwyer]

You can get a pension forecast.
They will tell you if you will be entitled to a UK gov pension.
I don't understand about you paying more if you have paid 40 years NI contributions.
I had 42 years NI and I got the full weekly pension amount that was given at that year at 65 year old. 

Yes, I have got forecasts, I posted the phone numbers as some posters were unsure about how to use the site/app.

My forecasts clearly shows that I paid 40 years yet still need 6 more years contribution to achieve FSP.





When I questioned them they said it was because I was contracted out , previous to this I thought it was because I was non-resident for many years.
Who knows ?
But the bottom line is I can pay the shortfall and if I live until I’m 70 then it will start to pay off.

[Samuel Smith]

1 hour ago, rixalex said:

Ten years ago i back-paid ten shortfall years at class 3 rate. It was quite expensive but at that time they were saying that 30 years was sufficient for a full pension, so i went for it. They then shifted the goal posts and made it 35 years. I was starting to wonder if it was worth continuing to make up the shortfall, but when i phoned the helpline and explained my situation the chap said that they had changed the criteria needed to pay class 2 rate, and urged me to fill out a form and see if i was eligible. I was skeptical but sent the form off anyway, and a long three or four months later got a letter back saying that i was eligible and it laid out the cost per year i would have to pay - as someone has already posted on this thread. Incredibly cheap. About 150 pounds per year. I back-paid another 10 years. At that sort of rate, i'm happy to write the money off if they change the goal posts again, because nothing comes close in terms of return. I'm up to 30 years now and will pay quarterly by direct debit for current years. Probably keep doing so past 35 years in case they change the number of years for full pension again.

Which helpline did you ring?

[sometimewoodworker]

1 hour ago, Saltire said:

Sorry if this has been mentioned but I don't have time to read all the posts. I considered making an application to make up a few years but decided not too. 

 

https://www.thisismoney.co.uk/money/pensions/article-5470181/Savers-wasting-money-trying-boost-incomes.html?fbclid=IwAR0C5IpTKLxiDQucL5MOY_cnspe6C0RCDTO5ZO6aF-Vad2I5X7nUkgAwq9s

 

 

It is your loss if you do not have 35 full years of full pension contributions and can't be bothered to pay them or read the information posted that can help. The article is not relevant to people who can increase their pension by making voluntary contributions.

[sometimewoodworker]

59 minutes ago, Caine said:

Depends how long you live after pension age, it’s a gamble if you live to 90 your quids in if you live to 66 your on a loser. Simple

If you live to collect any more than 3 and a bit years you are already a few quids in, by 90 you will probably have collected 6 times more than you paid in (in number terms)

[sometimewoodworker]

2 hours ago, steve73 said:

Is my pension forecast dependent on making further minimum NI payments until normal retirement age, or does it assume that I will make no further payments?

It is the value of the pension at the time it provided it makes no assumptions.

 

so you say you have 30 years, therefore your pension will be 30/35 of the current full rate that is £164.35 per week