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BANGKOK 20 April 2019 15:12
chang50

uk ni contributions

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1 hour ago, Andrew Dwyer said:


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.

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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.

As you were contracted out you should have been paying into a company or private pension, that pension should easily more than make up the difference. That was the reason to decide to contract out, I decided not to when offered the option.

 

If you were not paying into another pension or that pension has disappeared then your choice may have been suboptimal 

Edited by sometimewoodworker
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45 minutes ago, sometimewoodworker said:

As you were contracted out you should have been paying into a company or private pension, that pension should easily more than make up the difference. That was the reason to decide to contract out, I decided not to when offered the option.

 

If you were not paying into another pension or that pension has disappeared then your choice may have been suboptimal 

Yes, I paid into 2 company pensions, one of which is frozen until I’m 65 and the other I am drawing.

I am also paying AVC’s to cover a period when I was working without a pension.

Edited by Andrew Dwyer

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Try to Google `Topping up your state pension`a PDF from Royal London, a company run by former pensions minister Steve Webb. This doc is very useful. I then bought some NI vol contribution years at around 700 pounds a year, which increases your state pension by about 240 pounds a year. An investment that will pay for itself in just 3 years! For anyone who already has 10 or more years but less than the 35 years of complete NI contributions, it could be very worthwhile.

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2 hours ago, Andrew Dwyer said:

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.

All I can say is things are very different now, I thought the only you could get extra was to delay your pension and take it at a later time.

Edited by Kwasaki

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Have to say I'm confused now as the NI site says I have 35 full years contributions, but the Pension Forecast site says I need to contribute 6 more years to get a full pension... 

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Have to say I'm confused now as the NI site says I have 35 full years contributions, but the Pension Forecast site says I need to contribute 6 more years to get a full pension... 

PensionForcast.JPG.4470dbe215aab589a56a0a8b90d0c026.JPG&key=9ad5a194741c88c95122ff3707dfc86b2dbed44cf80ed471fa0278925fe0874e

Similar situation for me Mike . ( I have 40 years but still need another 6 years) my figures are very similar to yours.

 

I think it means you were contracted out at some point.

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4 minutes ago, Andrew Dwyer said:

Similar situation for me Mike . ( I have 40 years but still need another 6 years) my figures are very similar to yours.

 

I think it means you were contracted out at some point.

Thanks Andrew, good point, I was contracted out for most of my career so it probably is that, I need to speak to them anyway to find out why my 2017/2018 is showing as not fully paid so will check with them then (Mid-March when I'm in the UK).

 

I've already paid 2017/2018 & 2018/2019 so if worse comes to worse will pay for another 4 years and hit the full amount (That's if they don't change the rules again :s).

 

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39 minutes ago, Mike Teavee said:

Thanks Andrew, good point, I was contracted out for most of my career so it probably is that, I need to speak to them anyway to find out why my 2017/2018 is showing as not fully paid so will check with them then (Mid-March when I'm in the UK).

 

I've already paid 2017/2018 & 2018/2019 so if worse comes to worse will pay for another 4 years and hit the full amount (That's if they don't change the rules again :s).

 

Last Nov I already had my forecast and decided to pay the missing years.

Call them up with your NI number and bank details on hand and they will sort it there and then.

I paid a years amount ( £740 ) for 17/18 and then a partial amount for the 18/19  to get up to date and now monthly.

Edited by Andrew Dwyer
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This thread has been incredibly useful. Not only have I created a Govt Gateway a/c & accessed my NI record online but I have made two calls this afternoon to DWP and HMRC and ascertained that:

 

 a) DWP (+44 191 201 3600): My NI contributions are EIGHT YEARS short as a result of contracting out.

 

 b) HMRC (+44 191 203 7010): They suggested I download, complete and return their forms NI30 and CF83. 

 

My understanding is that some/all of my shortfall will be at the class 2 rate.

 

What a difference (in level of service from DWP/HMRC) a couple of years makes!!😊

 

 

 

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10 minutes ago, Jaggg88 said:

If you have missing years before April 2016 it may not be worth making extra contributions. This article explains https://www.moneywise.co.uk/pensions/income-retirement/should-i-make-the-shortfall-my-national-insurance-contributions

 

Interesting as it reads that the money I spent catching up 2010-2016 may have been wasted as they'd given me a start amount in 2016 which didn't include these & paying them doesn't change anything (Which is a bit of a pisser to say the least).  If true that would explain why I'm still 6 years short despite having 35 years contributions as the 6 years AVCs paid between 2010/11 - 2015/16 don't count!!!

 

They shouldn't allow people to make additional contributions if it's not going improving their pensions any, I'll be asking about this when I speak to them as well...

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If you were contracted out it tells you at the bottom of the page on the govt portal. If you click on link it takes you to your COPE figure. My understanding albeit I'm not 100 per sure if this figure needs to be deducted fron your state pension as its contribution is made up from your work pension. 

Screenshot_20190220-201515.png

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17 hours ago, steve73 said:

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.  

 

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.

it gives you both, payments withe ni contributions you have, and what would be if you get more years,

30 years should give you a 30/35 pension excluding any contracted out years adjustment.

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13 hours ago, Mike Teavee said:

Interesting as it reads that the money I spent catching up 2010-2016 may have been wasted as they'd given me a start amount in 2016 which didn't include these & paying them doesn't change anything (Which is a bit of a pisser to say the least).  If true that would explain why I'm still 6 years short despite having 35 years contributions as the 6 years AVCs paid between 2010/11 - 2015/16 don't count!!!

 

They shouldn't allow people to make additional contributions if it's not going improving their pensions any, I'll be asking about this when I speak to them as well...

You have completely misunderstood the 6 years AVCs paid between 2010/11 - 2015/16 count

 

You were almost certainly contracted out for quite a long time. during that time you will have been paying into a different pension, so made lower pension contributions to the state pension and payed a lower NI rate.

Edited by sometimewoodworker

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16 hours ago, Kwasaki said:

All I can say is things are very different now, I thought the only you could get extra was to delay your pension and take it at a later time.

If you have a full 35 years of full payments, that is the only way to get more.

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