State Pension potential shortfall warning
Discussion
Mr Pointy said:
I'm sorry, but you are splitting hairs here. If you are saying you cannot have NI automatically deducted from your private pension payments then that's correct but there's nothing stopping you from simply sending HMRC £733 & they'll credit it to your NI record.
Yes, Ive already posted that if you care to look back through the posts. I may have put a slightly different figure, but it was in the £700+ region. But you can now only buy back the years going back to 2016 or theres no benefit.In fact, I've just checked, its in the very first post in this thread, but I put the figure at £780 which I based on recollection.
Heres some information that I received from someone who was affected by this...
....I then rang the helpline 0800 7310181 and spoke to a helpful lady.
I already have 33 full years paid in, with a projection of £129. She said "you need to buy all years from 2016 (c.£780 pa) until you take the pension (2025) to get the full pension of £168". I think is partly because I was contracted out but also the new rules that we've found too.
First lesson - It was a shock to know that I need 44 years not 35 to get the full amount. Where was the publicity on THAT gem?
Buying 9 years will (at current rates) cost me c.£6900 which will pay back in 3.5 years so not too bad. (In fact she helpfully pointed out that the 9th year added only 83p/week for me, so 8 years at £6100 gives nearly the same return, payback period = 3 years).
Second lesson - the changes in 2016 mean that there is NO BENEFIT if I buy/top-up the unpaid/part-paid years before 2016-2017 as they are Old scheme and 2016 introduced the New scheme.
The website does not mention this critical piece of information, yet it tells you that you have until 2023 to buy years back to 2006 as a transitional benefit between the Old and New schemes. I repeat - there is NO benefit to your record by buying years before 2016-2017.
....I then rang the helpline 0800 7310181 and spoke to a helpful lady.
I already have 33 full years paid in, with a projection of £129. She said "you need to buy all years from 2016 (c.£780 pa) until you take the pension (2025) to get the full pension of £168". I think is partly because I was contracted out but also the new rules that we've found too.
First lesson - It was a shock to know that I need 44 years not 35 to get the full amount. Where was the publicity on THAT gem?
Buying 9 years will (at current rates) cost me c.£6900 which will pay back in 3.5 years so not too bad. (In fact she helpfully pointed out that the 9th year added only 83p/week for me, so 8 years at £6100 gives nearly the same return, payback period = 3 years).
Second lesson - the changes in 2016 mean that there is NO BENEFIT if I buy/top-up the unpaid/part-paid years before 2016-2017 as they are Old scheme and 2016 introduced the New scheme.
The website does not mention this critical piece of information, yet it tells you that you have until 2023 to buy years back to 2006 as a transitional benefit between the Old and New schemes. I repeat - there is NO benefit to your record by buying years before 2016-2017.
Edited by LeadFarmer on Friday 3rd January 19:20
markymarkthree said:
I feel I must thank Mr Leadfarmer.
I retired a couple of years ago at 59 (now 63) and have always assumed I would get gov pension of £155.50 at 67. I have just done gov gateway thingy and have discovered that I will get my £168.60 pension at 66, a year earlier than expected.
mark, as you are getting close to your state retirement age, and if you haven't been paying NI since retiring, please phone the helpline number I've posted and ask them about any shortfall through not paying NI. I hope you're ok, but for the sake of a few minutes on the phone please ring them and don't simps accept what the gateway thingy says.I retired a couple of years ago at 59 (now 63) and have always assumed I would get gov pension of £155.50 at 67. I have just done gov gateway thingy and have discovered that I will get my £168.60 pension at 66, a year earlier than expected.
0800 731 0181 have your NI number to hand
8am - 6pm Mon - Fri
anonymous said:
[redacted]
They are from discussions on other forums, just like this one. I'm not posting links to the forum posts as some of them were PM's and I believe it is in bad taste to make a private massage public without their consent. The subject interests me as I will soon be retiring at 55 and so I want to make sure I'm aware.FiF said:
Yes I realise that, however the statement has been made by thread detractors. My purpose was to illustrate some, not you, are possibly not totally clear about things.
Carry on OP, you have been treated disrespecfully on here by some imo. Just my 2p.
Thanks FIFCarry on OP, you have been treated disrespecfully on here by some imo. Just my 2p.
I'm staggered by the treatment shome have shown towards me on here. Im not a financial expert, I'm just an ordinary bloke who has been made aware of these issues and thought Id pass on the information to help others on here, but I really wish I hadn't bothered now. A forum is for discussion, I'm not trying to preach to anyone.
Im really hoping someone will phone the helpline on Monday for confirmation. And I'm starting to wish that 'certain people' on here don't make the call and find out too late, though thats not really in my nature.
jsf said:
This person is posting false information. That needs calling out.
But I'm not trying to defraud anyone, or put someone in a worse position am I. I'm trying to warn people about a potential problem that some may not know about. All I've done is raise the question and suggested that people check for themselves to be sure. Whats the harm in that?Edited by LeadFarmer on Friday 3rd January 20:42
jeff666 said:
Thanks for starting this thread OP,
It has made me pull my finger out and check my forecast, I am due the full amount if I pay in one more year, I have already paid in 41 years and have another 8 to go before my state retirement age of 67.
So I would have paid in for 50 years in total before I get my state pension. (including this year which has not been paid yet)
So if I retire earlier which I will do using my private pension and stop paying NI contributions will I still get the full amount as forecasted ?
So you are 59 now, and aim to retire before 67? It has made me pull my finger out and check my forecast, I am due the full amount if I pay in one more year, I have already paid in 41 years and have another 8 to go before my state retirement age of 67.
So I would have paid in for 50 years in total before I get my state pension. (including this year which has not been paid yet)
So if I retire earlier which I will do using my private pension and stop paying NI contributions will I still get the full amount as forecasted ?
Please phone the pension helpline I posted earlier and ask them about what state pension you will get if you retire before age 67 and DONT pay any more NI. My belief is that if you retire early, but take on other work and continue to pay NI, or make voluntary NI payments then you should be ok to get the full pension. But if you don't, then you may get a reduced state pension. Ring them on Monday and ask.
the tribester said:
OP, is the above the information that lead to your original post?
Where 'someone', who has retired from work, is having to continue paying NI, up to retirement age in order to get a full State Pension?
Its just part of the information I have been made aware of, which made me start this thread.Where 'someone', who has retired from work, is having to continue paying NI, up to retirement age in order to get a full State Pension?
jsf said:
You are also telling people the government website that shows your entitlement is wrong, when it isn't.
I used to have to deal with the fallout from characters like you when i worked as an FA for one of the high street banks. People get scared by your kind of information. You may think you are doing them a favour, but you are not.
All you need do is tell them to check their status and job done, don't then go on to tell them having checked, the government is lying to them. That just raises anxiety and not everyone copes well with that.
Im not saying the government are lying to them, I'm saying that others have discovered that the website forecast ended up being inaccurate because they went on to retire early, then discovered their state pension was to be reduced due to them not paying NI anymore. Im not trying to preach facts, I'm asking people to make a simple phone call to check on their individual case.I used to have to deal with the fallout from characters like you when i worked as an FA for one of the high street banks. People get scared by your kind of information. You may think you are doing them a favour, but you are not.
All you need do is tell them to check their status and job done, don't then go on to tell them having checked, the government is lying to them. That just raises anxiety and not everyone copes well with that.
jsf said:
You have stated multiple times the information on the current government website is false. Stop it please.
The problem you were initially talking about was based around the people affected during the 2016 changes when they didn't have access to the proper projections, as the online service was patchy and unavailable to most people. That has all been rectified.
Yawn yawn yawn....The problem you were initially talking about was based around the people affected during the 2016 changes when they didn't have access to the proper projections, as the online service was patchy and unavailable to most people. That has all been rectified.
Heres a link (if it works, and for those who must have links to everything) from the FT in 2016 about buying back missing NI
https://www.ft.com/content/46a54a64-330e-11e6-bda0...
https://www.ft.com/content/46a54a64-330e-11e6-bda0...
NRS said:
However it is not good to create a lot of confusion and panic for anyone reading but just saying the info is rubbish and everyone might be screwed.
I never said anything of the kind, if you look at my original post I finished by saying...'So, if you are planning to retire before state pension age, telephone the pension helpline on gov.uk and make checks for your own personal circumstances.'
Its as simple as that, folk can check for themselves. I don't see why anyone would think they are screwed. If anyone is due a shortfall they can resolve it. I bet there are lots of people who due to this thread have gone on to look into their own pension, who otherwise wouldn't have bothered, or thought of doing a check. Some of whom have discovered they can retire a year earlier than they thought, yet one of those people happens to have also given me lots of grief for starting this thread. Bizarre.
Edited by LeadFarmer on Saturday 4th January 16:18
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