State Pension Qualifying Years Q

[Banus]

Hi all,
So next year I reach the grand old age of 66 and qualify to receive my state pension and bus pass!! I see from my Govgateway NI record that over my working life I've made 44 years of FULL NI contributions and see that I only need to have made 30 qualifying years to receive my FULL state pension. So on the face of it I should be entitled to a FULL state pension.
However as I've been retired for a few years, I have 5 years when there are gaps in my NI contributions when I made no contributions at all. I see on my NI contributions record page that I can fill in these gaps by sending HMRC a payment.
So the question is if I I dont send a payment to fill in the gaps in my NI contributions, will this prevent me from receiving my FULL state pension?

 

[otherclive]

Hi all,
So next year I reach the grand old age of 66 and qualify to receive my state pension and bus pass!! I see from my Govgateway NI record that over my working life I've made 44 years of FULL NI contributions and see that I only need to have made 30 qualifying years to receive my FULL state pension. So on the face of it I should be entitled to a FULL state pension.
However as I've been retired for a few years, I have 5 years when there are gaps in my NI contributions when I made no contributions at all. I see on my NI contributions record page that I can fill in these gaps by sending HMRC a payment.
So the question is if I I dont send a payment to fill in the gaps in my NI contributions, will this prevent me from receiving my FULL state pension?

Where cash is concerned you would be better to contact DWP pensions service where they give print outs and options for making back payments. My wife did it and quite honestly it’s one of the best deals as she got her money back in around 7 years.

 

[Tonks]

When you check your Govgateway NI record, it will tell you how much State Pension you are currently entitled to based upon the number of qualifying years you have. It will also tell you how many more years NI contribution are required and how many years you have to pay it, in order to receive full state pension (if less than full). Also, be aware that if you opted out of SERPS (the old second state pension), this can impact the number of years you actually need to contribute NI for, in order to receive the full state pension.

 

[Banus]

Thanks for that and I can confirm that SERPS doesnt apply in my case. To keep it simple, I assumed that as you officially only need to make 30 years NI contributions to receive a full state pension and as I had made 44 years of contributions I would clearly receive a full state pension even though I haven't made NI contributions since I've retired. I tried calling the helpline but gave up after many many attempts.
A vey financially switched on ex-work colleague once explained that it wasn't worth making up the gaps in your record after you'd made 30 full years contributions as most of it would go in tax and you wouldn't receive the full benefit.

 

[Tonks]

It very much depends on the quality of the annual contribution (e.g the SERPS example). I've paid in 39 full years with no gaps in my record, but still have one more year to contribute to ensure I get the full SP. Importantly, your Govgateway NI record clearly tells you whether you need to make any additional contributions to receive the full SP and how long you have to make them. By way of example, mine states I need to make 40 years of full contributions to get the full SP, so one more year:

Estimate based on your National Insurance record up to 5 April 2023 = £202.38 a week.
Forecast if you contribute another year before 5 April 2035 = £203.85 a week.
£203,85 is the most you can get.
You have 39 years of full contributions and 12 years to contribute before 5 April 2035. You do not have any gaps in your record".

And re the advice from your colleague, that would be dependent on any other income and it's total value against your personal allowance..

​

 

[otherclive]

It very much depends on the quality of the annual contribution (e.g the SERPS example). I've paid in 39 full years with no gaps in my record, but still have one more year to contribute to ensure I get the full SP. Importantly, your Govgateway NI record clearly tells you whether you need to make any additional contributions to receive the full SP and how long you have to make them. By way of example, mine states I need to make 40 years of full contributions to get the full SP, so one more year:

Estimate based on your National Insurance record up to 5 April 2023 = £202.38 a week.
Forecast if you contribute another year before 5 April 2035 = £203.85 a week.
£203,85 is the most you can get.
You have 39 years of full contributions and 12 years to contribute before 5 April 2035. You do not have any gaps in your record".

And re the advice from your colleague, that would be dependent on any other income and it's total value against your personal allowance..

​

What was the basis for raising the full state pension so much higher than it is for the cohort of pensioners that retired before the new State Pension was introduced. With the triple lock the gap will only widen. Mind you if mine gets much higher I will be thrust into a new tax band.

 

[RogerL]

Thanks for that and I can confirm that SERPS doesnt apply in my case. To keep it simple, I assumed that as you officially only need to make 30 years NI contributions to receive a full state pension and as I had made 44 years of contributions I would clearly receive a full state pension even though I haven't made NI contributions since I've retired. I tried calling the helpline but gave up after many many attempts.
A vey financially switched on ex-work colleague once explained that it wasn't worth making up the gaps in your record after you'd made 30 full years contributions as most of it would go in tax and you wouldn't receive the full benefit.

There don't appear to be relevant gaps in your contribution history - but if there were it can be very worth while to make up some or all of the missing years - we did that when my wife got to 60 and got the money back within 2 years from increased weekly pension - your ex-colleague may be talking BS as you won't reach the tax threshold on basic pension alone, let alone a reduced pension.

 

[RogerL]

What was the basis for raising the full state pension so much higher than it is for the cohort of pensioners that retired before the new State Pension was introduced. With the triple lock the gap will only widen. Mind you if mine gets much higher I will be thrust into a new tax band.

The change in full pension rate was very hard on those who retired before the cut-off date - they were required to get 44 years contribution to get the smaller amount while those who retired after were only required to get 30 years and got a larger pension.

 

[Mr Plodd]

I went through this exact process a few years ago, as I wasn't working and had my Police pension as income, so was in the same position as you are now.

If you are in receipt of an income (private pension etc) and have not yet reached state pension age Income tax will be automatically taken from your "income" but NI contributions will not!

If you fail to make additional NI contributions your state pensionn WILL be reduced.

When you go to the pension prediction page on the Gov website it will show what your pension will be BUT ONLY IF YOU CONTINUE TO MAKE NI CONTRIBUTIONS right up until your state pension qualifying year.
What you will get on your current contribution history is on the next page in much smaller type! (Sneaky or what?)

To ensure you will get the full state pension you have to make up any "missed" years. In my case it was around £850 per missed year. HOWEVER if you register as self employed (even if you earn nothing) you can make voluntary reduced NI contributions (I think its Class 2) on your annual tax return (dead simple process) and they are under £200 per year and that will ensure you get the maximum state pension possible

The above was my experience.

I would really strongly advise you call the state pension help line to ensure you dont get caught out as I (and my missus) very nearly did to the tune of a LOT of pension.

I found them to be exceedingly helpful.

Do nothing and you WILL miss out.

If you wait until you reach state pension age you cannot make retrospective NI payments.

 

[ProfJohnL]

There are conflicting views expressed in this thread. You would surely be better talking to registered pensions advisor who should be able to explain and take you through through all the details that will apply to your specific situation.

 

[Banus]

Many thanks for all your contributions, pardon the pun. Clearly I have to take action and have time to do so.
Mr Plodd, I'm in the same position as yourself. Retired from the Police service 10 years ago at 55 yrs and have received my Police pension ever since as my only source of income. Fortunately I'm in a position to make up my missed years which I probably will do. I'll re-visit my Gov Gateway site to see exactly what the score is. Clearly there's more to this than meets the eye!

 

[Hutch]

Think yourselves lucky, worked overseas all my life and paid NI contributions as self employed. Government told me I had paid 33 years and to stop paying any more. Got to retirement and about to claim my pension.
Oh if you wish to get your full pension , please pay us another £22k . I worked it out it wasn't worth it.
Mr H gets her full pension which is £40 a month more than mine.
Thank goodness I have a company pension.
But miffed at having to pay tax on an Old age pension.

 

[Dustydog]

Think yourselves lucky, worked overseas all my life and paid NI contributions as self employed. Government told me I had paid 33 years and to stop paying any more. Got to retirement and about to claim my pension.
Oh if you wish to get your full pension , please pay us another £22k . I worked it out it wasn't worth it.
Mr H gets her full pension which is £40 a month more than mine.
Thank goodness I have a company pension.
But miffed at having to pay tax on an Old age pension.

It will never change Hutch. The Pensioners are an anathema to most political parties.

 

[Beachball]

Due to ill health I was forced to retire aged 36 years old, receiving NHS pension which helped, but my wife became the main wage earner working for a total of 46 years within the NHS as a Nurse. With this she qualified for full pension when reaching 66years, but had to finish work aged 62years to become my carer which she has been for the past three decades. Still returning in a minor capacity to help during the recent health pandemic

 

[Gafferbill]

.....the OP should without question, should direct his question to the DWP.
I retired at 54 and as I had paid over 30 years contributions I received the full state pension at 65. Everyone likely has differing circumstances.
My wife has a teacher's pension which was such a good deal, we both contributed extra money to it over the years.
Her full state pension that she also receives is paid with one hand by the government and removed as tax with the other!

C'est la vie.

 

[Guzzilazz]

DWP phone service is excellent, but you will need some patience hanging on for someone to answer. Bit like HMRC, they are very helpful when you do EVENTUALLY get through.

 

[Sam Vimes]

The Pension System is a real minefield and I believe hard to understand for the average person.

I recall that its not just the number of qualifying contributions that you make but also the number of qualifying weeks that you have worked.

Its a while back but my wife fell foul of this 'rule' although I may not recall the details exactly.

She used to be self employed but always made a point of paying her own 'stamp' continuously. Then we decided to form our own limited company and went onto PAYE. However, and again I can't recall the details exactly, in the interim period she kept paying her 'stamp' but was not technically self employed and for some reason didn't appear on our PAYE for a period of about 6 weeks.

When pension time came for her she was informed that although she had made sufficient contributions she was short of the qualifying number of weeks by 6. Her pension would be about 98p per week less. If she wanted a full pension she could hand over a couple of thousand to get it. We declined.

Strangely this never affected my pension.

 

[Milkfloat]

I think you need to check two places to get full information. First of all how may years you have contributed at: https://www.tax.service.gov.uk/check-your-state-pension/account/nirecord and then your pension forecast at https://www.tax.service.gov.uk/check-your-state-pension/account. In my case, I guess because of my age I need 35 years to get the full pension.

 

[Banus]

So, as advised by many of you, I called the Govgateway helpline and to my absolute amazement got straight through to an extremely helpful and knowledgeable advisor. I wasn't even in a queue! Lucky or what!
She confirmed that the figures on my state pension summary page are (as you'd hope), absolutely correct and although I've made 44 yrs full NI contributions I'm still just 1 yr short to receive my full SP of £203.85
The maximum I can receive at the moment (because I'm 1 NI contribution year short), is £200.64 pw a shortfall of £3.21 pw which after tax will net me £2.57 pw.
If I decide to buy the 1 yr enabling me to receive the max SP (£203.85), It'll cost me a further one off contribution of £437.
I've yet to decide whether to make the investment of £437, but If I do it'll take me 170 weeks / 3.3yrs to get my investment back and after which I'm quids in. Either way its not a deal breaker. Many thanks for all your views and valuable advise.

 

[otherclive]

So, as advised by many of you, I called the Govgateway helpline and to my absolute amazement got straight through to an extremely helpful and knowledgeable advisor. I wasn't even in a queue! Lucky or what!
She confirmed that the figures on my state pension summary page are (as you'd hope), absolutely correct and although I've made 44 yrs full NI contributions I'm still just 1 yr short to receive my full SP of £203.85
The maximum I can receive at the moment (because I'm 1 NI contribution year short), is £200.64 pw a shortfall of £3.21 pw which after tax will net me £2.57 pw.
If I decide to buy the 1 yr enabling me to receive the max SP (£203.85), It'll cost me a further one off contribution of £437.
I've yet to decide whether to make the investment of £437, but If I do it'll take me 170 weeks / 3.3yrs to get my investment back and after which I'm quids in. Either way its not a deal breaker. Many thanks for all your views and valuable advise.

How many pension funds would give you pay back in 3.3 years? My wife's payback was. 7 years and we are well into profit. Plus it gets Triple Lock updates too, even if you deduct the loss of interest on the £437. Win Win.

 

[Hutch]

That's a good result, I would go for it, .
I had opted out of the SERPs at age 25, I knew nothing about pensions. But thankfully my company pension was very good.
I feel very sorry for folk that only have. The State pension.

We alway buy food to put into the food bank collection on our weekly shop.
But that's a different situation.

 

[Stevejj]

hi, I Medically retired from my company after 38 yrs 2wks, I was short of a full company pension by 4.5 years, my case was referred the pensions board along with my doctors and company doctors case notes, eventually after 3 months the pension board awarded me the shortfall to make me up to full pension (40yrs) with restrictions. So by the time I reach sp which will be 2025 I would have been medically retired 6yrs, me and the wife are going to investigate all this after Christmas, my question is because I'm on a full private pension does my sp reduce or does my private pension reduce once I'm eligible for sp

 

[otherclive]

hi, I Medically retired from my company after 38 yrs 2wks, I was short of a full company pension by 4.5 years, my case was referred the pensions board along with my doctors and company doctors case notes, eventually after 3 months the pension board awarded me the shortfall to make me up to full pension (40yrs) with restrictions. So by the time I reach sp which will be 2025 I would have been medically retired 6yrs, me and the wife are going to investigate all this after Christmas, my question is because I'm on a full private pension does my sp reduce or does my private pension reduce once I'm eligible for sp

There's no reason a private pension or state pension would reduce because of each other. Mine didn't, neither did my wife's. After all you have paid into both one way or another.

 

[Hutch]

There's no reason a private pension or state pension would reduce because of each other. Mine didn't, neither did my wife's. After all you have paid into both one way or another.

I think this all depends on whether you opted out of the SERPS. I received an enhanced company pension if I opted it of SERPS. As the company didn't have to pay as much NI contribusions.
Or something like that. But being young and not understanding pension stuff, what did I care. .
I still don't fully understand it all.
But I know I still pay tax on my pension and my savings if they are not ISA's.

 

[otherclive]

I think this all depends on whether you opted out of the SERPS. I received an enhanced company pension if I opted it of SERPS. As the company didn't have to pay as much NI contribusions.
Or something like that. But being young and not understanding pension stuff, what did I care. .
I still don't fully understand it all.
But I know I still pay tax on my pension and my savings if they are not ISA's.

Yes but that was years ago when we were asked to make those choices. I believe the question related to a current state pension versus a private pension and if they affected one or other when the time comes for payment.