Jump to content
BANGKOK 18 July 2019 06:24
Mike Teavee

UK Pensions - Is it worth catching up on NI Contributions before April 2016

Recommended Posts

Posted (edited)

Hi guys,

 

Apologies if this has been asked/answered before, I did do a search but couldn't find anything relevant so here goes.

 

in 2017 I caught up on 6 years (7 if I included that Tax year) NI Contributions at Class-2 rate (on the basis I'm an Expat) and now have the full 35 years contributions (I'll actually have 37 once I sort out 2017-18 (50p mistake on my part) & 2018-19 are applied).

 

image.png.537710680cbd95cdba62ff502bc26084.png

 

so I now wan't to stop paying (especially as it's now gone up to Tier-3 rates for Expats), when I look at my Pension Forecast it states I need to pay another 6 years (presumably 4 once 2017-18 & 2018-19 are sorted) to reach the full amount 

image.png.632eb9a5f66225611f9727ce7e08060b.png

 

 

Does anybody know if this Is because I caught up on 2010-11. 2011-12, 2012-13, 2013-14, 2014-15 & 2015-16 after the April 2016 re-baseline of entitlements & so I've wasted ~£950 as these won't count (In which case, does anybody know if I can reclaim this, I'm sure I saw a MoneyMarket article on something similar but can't find it again now)..

 

 

Thanks

 

 

MTV 

Edited by Mike Teavee

Share this post


Link to post
Posted (edited)
20 minutes ago, Mike Teavee said:

Does anybody know if this Is because I caught up on 2010-11. 2011-12, 2012-13, 2013-14, 2014-15 & 2015-16 after the April 2016 re-baseline of entitlements & so I've wasted ~£950 as these won't count (In which case, does anybody know if I can reclaim this, I'm sure I saw a MoneyMarket article on something similar but can't find it again now)..

Go onto "www.thisismoney.co.uk" at the top of the page you should find a heading titled "pensions" Click on that. There are a variety of articles that may help, one in particular named "Saver buys 2500 pounds of top- ups that count 'towards' but dont improve his state pension.

Edited by potless
  • Thanks 1

Share this post


Link to post
14 minutes ago, potless said:

Go onto "www.thisismoney.co.uk" at the top of the page you should find a heading titled "pensions" Click on that. There are a variety of articles that may help, one in particular named "Saver buys 2500 pounds of top- ups that count 'towards' but don't improve his state pension.

Thanks... it probably was "ThisIsMoney" I saw it on but for some reason thought it was MoneySupermarket... 

 

Share this post


Link to post
7 hours ago, Mike Teavee said:

In which case, does anybody know if I can reclaim this,

A lot of people have been trying but probably unlikely.

Best of luck. 

Share this post


Link to post

don't bother catching up, you don't know what will happen in the future as it's the worst pension in the western world. I was advised by an accountant not to bother as you will be pro rata in terms of payments. think about where did your earnings related go?

  • Like 2

Share this post


Link to post
8 hours ago, topt said:

A lot of people have been trying but probably unlikely.

Best of luck. 

From the ThisIsMoney article mentioned above, it looks like a lot of people are having more success (there's even mention of it being automatically refunded).

 

I need to speak to them anyway about the 2017-18 shortfall so no harm in asking... I know the shortfall will be because of 50p that I miscalculated when I paid up 7 years worth, they said they'd write off - Silly me thinking HMRC will let you get anyway with anything though we both agreed it was going to cost them more to process it than they would receive.

 

Share this post


Link to post
8 hours ago, sandrabbit said:

don't bother catching up, you don't know what will happen in the future as it's the worst pension in the western world. I was advised by an accountant not to bother as you will be pro rata in terms of payments. think about where did your earnings related go?

I disagree... I managed to pay most of my shortfall at Class-2 so I only need to receive a pension for 8 months before I'm in profit, even at Class-3 Rates, I make it approx 3 years (each years catch-up is worth approx 250GBP pa, current yearly rate is approx 780GBP).

 

Not sure what you mean by thinking about where my earnings related went, if you mean my private pension, most (20 years) is in a fInal salary scheme so I know this pensions (kicks in at 60) will reduce when I start receiving the State Pension, but only by 20/35ths so it (on paper, currently) is still worth doing to receive the additional 15/35ths)

 

I do agree that fck knows what the future holds for UK Pensions, can't do anything but try to put yourself in the best possible place.

 

 

 

 

 

 

  • Like 2

Share this post


Link to post

it’s a no brainer - maximize your contributions - providing you live till around 70 you’re return on investment is around 25 per cent per year.


Sent from my iPhone using Thaivisa Connect

  • Like 2

Share this post


Link to post
2 hours ago, Mike Teavee said:

From the ThisIsMoney article mentioned above, it looks like a lot of people are having more success (there's even mention of it being automatically refunded).

Well that is good news and must have changed since I last read an article on it.

2 hours ago, Mike Teavee said:

I disagree... I managed to pay most of my shortfall at Class-2

I take it you must have been working abroad to be able to do that?

 

I was hoping to top up with Class 2 initially for years prior to 2016 but was told by an advisor would make no difference as @partington explains above. Big difference between Class 2 and 3 when you are looking at more than a few years. 

Share this post


Link to post
Posted (edited)
20 hours ago, Mike Teavee said:

Does anybody know if this Is because I caught up on 2010-11. 2011-12, 2012-13, 2013-14, 2014-15 & 2015-16 after the April 2016 re-baseline of entitlements & so I've wasted ~£950 as these won't count (In which case, does anybody know if I can reclaim this, I'm sure I saw a MoneyMarket article on something similar but can't find it again now)..

 

It is almost certainly because you were contracted out for some of your working life. 

 

There has has been some significant miss information posted in this thread. Some is completely false.

 

you need 35 years of full contributions for a full pension. Which years they are is not relevant.

 

Contracted out years are not the same so should be disregarded.

 

Class 2 years are incredibly good value for money.

Class 3 years are extremely good value for money.

 

You would have to be a genius level investor to get a better return than Class 3, and a super genius to beat Class 2.

 

 

Edited by sometimewoodworker
  • Like 2

Share this post


Link to post
2 hours ago, sometimewoodworker said:

It is almost certainly because you were contracted out for some of your working life. 

 

There has has been some significant miss information posted in this thread. Some is completely false.

 

you need 35 years of full contributions for a full pension. Which years they are is not relevant.

 

Contracted out years are not the same so should be disregarded.

 

Class 2 years are incredibly good value for money.

Class 3 years are extremely good value for money.

 

You would have to be a genius level investor to get a better return than Class 3, and a super genius to beat Class 2.

 

 

If that was the case then I'd only have a few years contributions but as you can see from the OP I have 35 years, but only 32 of these are counting to my pension, which when I look at my working history...

image.png.da84b5f322984e72ba25e7de5b15f3ad.png

 

Summary 

image.png.2fc87f977f62b3dd5e62f503aea71c79.png

 

... Doesn't tally one way or the other... 

 

 

Will try to find the time to call them week after next to get my 2017-18 sorted and find out exactly why I don't have 35 years (If the  top-ups count) or 29 years (if they don't at all) or how the bl@@dy hell they get it to be 32 years :s 

 

 

Maybe the years you're contracted out apply pro-rata (e.g. 10 years of contracted out is work 8 years of full contributions) Who knows :s 

 

 

 

Share this post


Link to post
28 minutes ago, Mike Teavee said:

Maybe the years you're contracted out apply pro-rata (e.g. 10 years of contracted out is work 8 years of full contributions) Who knows :s 

That is certainly possible and DWP are the people to talk to they are extremely helpful (shocking for a government department but true)

 

Don't forget that the contracted out years mean that you have another pension that  possibly provides more than the state pension would have done if you were not contracted out, so if you can top up to the full pension you are quids in.

 

I don't believe that the topup years don't count. That is AFAIK a totally false idea.

 

the contracted out years make calculations difficult and only DWP or an independent pension adviser can answer completely.

 

But it is your responsibility to ask the correct questions, people making assumptions rather than asking DWP is probably why some people have made payments that was of no benefit to them.

 

  • Like 2

Share this post


Link to post

Hi  i took my pension and left it as it is the money i should pay contrabution i keep 

worked out ok

 

 

better pay into a uk account and have a simple adress in uk otherwise u get the rate overseas   thats not what u want every pound counts to live good luck  

Share this post


Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...