State pension topup conundrum
Posted: October 25th, 2017, 10:28 am
This question started on the FIRE board but I've moved it to a separate topic. It's related to an incomplete NI record but with options to buy back years, and highlights to me the pretty complex nature of the state pension, even if on the face of it £159.55 a week is a simple headline.
Facts:
I am 50
So far, 21 full qualifying NIC years from 1983/4 to 2007/8
No NICs from 2008/9 to 2015/6 (8 years)
I have the right to buy these 8 years via voluntary contributions ranging from £689 to 733.20 (total £5509.40)
This right expires on April 5 2023, but the prices are only fixed until 5 April 2019
The State pension forecast is presently £86.18/week based on the 21 years
The State forecasts I can still get to £159.55 if I contribute another 17 years before 2034.
The date of this forecast and data on NICs is very recent
The pensions service indicates I have a contracted out pensions equivalent (COPE) of £30.66 as a result of some contracted out employment within the 21
Questions
I don't understand why it will amount to 21+17 = 38 years of total contributions to get the full pension (if indeed a full pension is available)
I don't understand why 21 years of contributions is only £86.18 so far (£4.10 per year)
It looks like they are saying work the NIC minimum for 17 years from 50 to 67 and I will be topped up to the full amount
I don't know whether if I make the voluntary contributions for the 8 years now, these will add to the current forecast of £86.18
I don't know if the £30.66 reduces the max state pension I can get in any event to (£159.55-£30.66) = £128.89
The pensions service staff are unable to answer these questions well
Current plan
I plan to buy the 8 years before 5 April 2019, if I can be certain this will get me 8*4.56 per week from 67 onwards
I can arrange to work or do more topups year-on year from 2017/8 onwards to get to the max
All of this predicated on a 67 payment start date which can/will change of course
Facts:
I am 50
So far, 21 full qualifying NIC years from 1983/4 to 2007/8
No NICs from 2008/9 to 2015/6 (8 years)
I have the right to buy these 8 years via voluntary contributions ranging from £689 to 733.20 (total £5509.40)
This right expires on April 5 2023, but the prices are only fixed until 5 April 2019
The State pension forecast is presently £86.18/week based on the 21 years
The State forecasts I can still get to £159.55 if I contribute another 17 years before 2034.
The date of this forecast and data on NICs is very recent
The pensions service indicates I have a contracted out pensions equivalent (COPE) of £30.66 as a result of some contracted out employment within the 21
Questions
I don't understand why it will amount to 21+17 = 38 years of total contributions to get the full pension (if indeed a full pension is available)
I don't understand why 21 years of contributions is only £86.18 so far (£4.10 per year)
It looks like they are saying work the NIC minimum for 17 years from 50 to 67 and I will be topped up to the full amount
I don't know whether if I make the voluntary contributions for the 8 years now, these will add to the current forecast of £86.18
I don't know if the £30.66 reduces the max state pension I can get in any event to (£159.55-£30.66) = £128.89
The pensions service staff are unable to answer these questions well
Current plan
I plan to buy the 8 years before 5 April 2019, if I can be certain this will get me 8*4.56 per week from 67 onwards
I can arrange to work or do more topups year-on year from 2017/8 onwards to get to the max
All of this predicated on a 67 payment start date which can/will change of course