Pension Boosting article discussion

[MSE Wendy]

This is the discussion area for the NEW Pension Boosting article

Please click reply to discuss

[kokma nick]

From 6th April 2009 certain people are able to buy an additional 6 years of NI contributions dating back to 1975.

If I am already in receipt of state pension at less than 100%, and buy sufficient years to increase my pension to 100%, will the increased pension be paid (a) from the date the additional NI contributions are made, or (b) from commencement of payment of state pension?

[kokma nick]

Further to my post as above, does anyone know whether it is possible to ask my question of the REvenue and Customs BY E-MAIL

Only telephone numbers are shown on their website, i am overseas and do not wish to incur unnecessary expense holding on listening to music

[cjdean]

Hi there, can anyone help me. I am only earning less than the minimum amount to pay any tax or NI. I do not want to lose my eligibility to claim SP when I retire, so what do I do?

Should I expect forms to come dropping through the door to sort it out,

or

Should I be doing something already that I don't know about

Thanks!

[Magcar]

I have paid National Insurance contributions for approximately nine years, five of those with the married women's stamp. I received Child Benefit for approximately twenty-five years. I was led to believe I should pay six years shortfall to make up my pension but then read that married women needn't do this. What should I do please?

[kento]

Deferring state pension isn't a simple calculation.

You may have tax issues, it may be beneficial to avoid paying tax on state pension income now because other income is making it taxable.

On the other hand the extra state pension later in life may not produce an real extra income if you became entitled to minimum pension in any event.

What about the impact of drawing down savings capital rather than taking pension?

Finally, governments are prone to altering pension regulations, witness the forthcoming reduction to 30 qualifying years, so its hard to predict what might happen. For instance you might speculate that if the recession bites harder the working generation struggling to pay off government debt through higher taxation would look favourably on a political party looking to be even more frugal with pension spending.

[RichOxon]

Originally Posted by cjdean

Hi there, can anyone help me. I am only earning less than the minimum amount to pay any tax or NI. I do not want to lose my eligibility to claim SP when I retire, so what do I do?

Should I expect forms to come dropping through the door to sort it out,

or

Should I be doing something already that I don't know about

Thanks!

You need to get 30 qualifying years in order to get a full pension, and so as long as you expect to get those years before you retire then it doesn't make sense to pay now.

If you don't expect to get those years then it could make sense to pay before April, so that you pay the cheaper rate.

[muckybricks]

Further to kokma nick's post re buying missing years contributions, as I understand it, in November Gordon B made reference in his budget speech to allowing people with years missing between 1975 and 1981 to purchase up to 6 of these missing years. These people affected will mostly be women who are now approaching retirement and who stayed at home to bring up their children. A very useful piece of legislation if it is every enacted. Since then nothing seems to have happened.

I assume it will need to be put to a Parliamentary vote in order to be made law. If anyone knows what is happening I would be grateful for any information as I am due to retire in June with missing years.

Thank you

Mary B

[RichOxon]

I'm 28, have 9 qualifying years, and have the option of buying up to 3 more years, which will cost me a total of about �900 (one of them I already have partial credit for).

I'm planning on emigrating soon, so I may never reach the 30 qualifying years that I'd get from continuing to work in the UK.

I know I can claim my UK pension from the country I'm emigrating to.

Can I still accumulate qualifying pension years from keeping my UK business open? If I can, then it's a much cheaper way of picking up qualifying years than paying out that �900 now.

Does anyone know if that is possible? Can I live in another country, but still keep paying my Class 2 (Self-employed) National Insurance contributions, and in doing so accumulate those qualifying pension years?

Any advice appreciated! :-)

[ChampagneJoJo]

By the time I retire I will have 48 qualifying years, does this mean I will get more of a pension than if I only had 30 years, or can I stop paying contributions after the 30 years is up? (I'm self-employed)

[west-sussex]

I opted out of SERPS many years ago, left work to have children and then returned to work in SERPS again.

Does this effect my pension and how? Secondly how can I find how many qualifiying years I have?

Thanks

[dunstonh]

Does this effect my pension and how?

It has no impact on the basic state pension. Just the second state pension.

Secondly how can I find how many qualifiying years I have?

You can get a pension forecast from the DSS. You can request one online, although there are a couple of hoops to jump through first. It is worth it though.

http://www.thepensionservice.gov.uk/...ecast/home.asp

[dulcimer]

Originally Posted by kokma nick

From 6th April 2009 certain people are able to buy an additional 6 years of NI contributions dating back to 1975.

If I am already in receipt of state pension at less than 100%, and buy sufficient years to increase my pension to 100%, will the increased pension be paid (a) from the date the additional NI contributions are made, or (b) from commencement of payment of state pension?

I retired in 1999 and only had some 30 years stamps so my pension is even now only �54.00 is there any way I can buy back years to boost my pension

[rosepink]

If you have brought up stepchildren since 1978 ,or have been caring,and have stopped work to do the same you may be entitled to claim Home responsibilty protection.

I have just applied for 4 years credits, which then brings me up to 30 years contribution , which is what I need. My husband claimed child benefit as he had custody and we never knew that this gave NI credits from 1978. You can now ask for this to be transferred from your spouse, partner or civil partner if this would help with the cont record. See form CF411 from HM Revenue and Customs.

Also if you lack contribution for the year 2005-2006, the amount to buy this back will NOT increase this April and one has until 5 April 2012 to buy this if needed. (�382.20)This was confimed by the NI contributions office today as it applies to me and is for this year only. I will wait and see if i get my missing 4 years via the HRP transfer first!

Hope this helps and gives someone a bit longer to save the money!!

[RichOxon]

Originally Posted by ChampagneJoJo

By the time I retire I will have 48 qualifying years, does this mean I will get more of a pension than if I only had 30 years, or can I stop paying contributions after the 30 years is up? (I'm self-employed)

Only 30 years count, so the additional 18 years don't get you anything extra as far as the basic pension is concerned. I'm not sure how any additional pension credit might be affected.

Your contributions go towards other things as well as your pension, and even after you've accumulated 30 years worth, you need to continue to pay them if you're self-employed, and earning more than a certain (quite small) amount.

[harryhound]

Me: I've got enough payments for my state pension, so I get next to nothing for these NI payments - They are just another tax.

HMRC: I think you understand the situation perfectly sir.

[dejavou]

I deferred my pension in 2006 as I have continued to work, but I've rung the Pension Service on a couple of occasions now to get a forecast of what I will get if I decide to draw it this year, both times I got different opinions, but nothing concrete as "the systems didn't seem to be working" I was promised a forecast in writing both times ..... still waiting, so it seems even getting something that simple, isn't that simple!!!!!!!!!

[jancee]

Originally Posted by kokma nick

From 6th April 2009 certain people are able to buy an additional 6 years of NI contributions dating back to 1975.

If I am already in receipt of state pension at less than 100%, and buy sufficient years to increase my pension to 100%, will the increased pension be paid (a) from the date the additional NI contributions are made, or (b) from commencement of payment of state pension?

The increase will apply from when the payment is made.

[jancee]

Originally Posted by kokma nick

Further to my post as above, does anyone know whether it is possible to ask my question of the REvenue and Customs BY E-MAIL

Only telephone numbers are shown on their website, i am overseas and do not wish to incur unnecessary expense holding on listening to music

Yes, contact the Centre for Non Residents. They can provide a pension forecast.

http://www.hmrc.gov.uk/cnr/osc.htm#8

[jancee]

Originally Posted by Magcar

I have paid National Insurance contributions for approximately nine years, five of those with the married women's stamp. I received Child Benefit for approximately twenty-five years. I was led to believe I should pay six years shortfall to make up my pension but then read that married women needn't do this. What should I do please?

Get a pension forecast.

Depending on your date of birth you need either 39 or 30 qualifying years. If the former [born before 5 April 1950] you need at least 10 years working to get any pension in your own right. Maximum Home Responsibilites Protection for years in which not working but receiving Child Benefit are 19 if 39 years required, 22 if 30.

Married women can claim a 60% basic state pension when their husband is 65 and claims his pension. [Just when he's 65 if after 2010]