johnh009

New rules are coming into effect on 06 April, 2009 regarding UK National Insurance contributions.

Of note, at the moment they are letting anyone buy back in retroactively to the the 1996/97 tax year. After, 05 April, 2009, you will only be able to buy back in for the previous six tax years.

After 06 April, 2009, anyone retiring between 06 April, 2008 and 05 April, 2015 will be able to buy back in retroactively to 1975.

Better to buy back in soon for those who are interested. At the moment, the rate of voluntary NI contributions is £8.10 a week. The cost is increasing to £12.05 a week in October, 2009.

http://www.pensionsadvisoryservice.o...Contributions/

BristolUK

Good thread.

Not sure how this fits in but it might for some people. You may not need to cover missing periods as you may qualify for a full pension on 30 years worth of contributions anyway.

If you have close to 30 years already, you'll have close to a full pension. Paying for extra years may not be worth it. Best to check your own situation as it differs according to various factors.

johnh009

Yes, good point, you are correct, they recently changed the rules and if you have 30 years of contributions, then you will receive a full pension and, otherwise, pro-rata for each year of contributions.

aasmith1957

hi
sorry to rain on your parade but uk and au goverments will eventually phase out pension. this being due to high amount of baby boomers etc. if you have property,assets of any description you will be means tested so only those with nothing will recieve help from the goverments.

dunroving

In your opinion.

I think some kind of move like that, by UK, Aus, US, is quite possible ... but not inevitable.

BristolUK

Yes...just opinion.

Even if it happens, though, the phasing of major pension changes is such that people should have plenty of time to prepare for such eventualities.

johnh009

This is also possible, there has already been much discussion on this issue. Seniors, moving into care facilities in the UK, now have to pay themselves if they have assets. For those without, the government pays.

BristolUK

Bit puzzled by that. Has there been a change in the last 4 or 5 years?
I worked for DSS/DWP 1973- 2004 and they always did have to pay if they had assets. Those assets could include their house if owned - although not if a surviving spouse or other aged relative lived there. They were also given time to sell if necessary before losing all or partial funding.

Any shortfall between fees needed and income used to be paid for by DSS and later by Local Authorities. The upper capital limit at which point someone had to fund themselves is much higher now than it was a few years ago so there are people qualifying now who wouldn't have qualified a few years ago. Which means there are potentially more qualifying for funding than before.

And isn't care in a Nursing Home in Scotland now considered the same as being in hospital, so not paid for by the patient? Perhaps that has changed back again?

NedKelly

That's a great link. There is a link to get a pension forecast but you can only do it if you live in the UK. Does anyone know why?

Grayling

That has been the case since the Thatcher days at least

johnh009

You are probably correct, I know unemployment benefits are also means tested so it is quite possible that they may do the same to pensions.

The government "borrowed" heavily from the pension fund to bale out the banks, that is probably why NI contributions are going up a whopping 50% in October, 2009. No doubt the people will pay for the banks mistakes.

NedKelly

NI is just another tax.

johnh009

I do not know but note that the 30 year rule only applies to people reaching state pension age after 06 April, 2010. Getting bloody complicated, I am sure to the government's advantage.

ezzie

Phew...thanks for posting this. I'm planning to backpay quite a few years of pension so your info couldn't have come at a better time. I'd better get a move on. I did wonder whether it'd be better to just invest that money elsewhere as so many people are presuming that there won't be a pension to be had, that plus any pension amount would be taken into account when applying for Australian pension - if we're still living in Oz (which I hope we're not!).

aasmith1957

pretty sure a few years ago the goverment (australia)talked about a cut off point.my son in law will just get his but my son who was born the year later 1978 wont be entitled to it unless he has nothing (means tested).thats why they want you to have private pensions or top them up (super).thats why the were offering do say you pay $5 gov would put in $ extra.maybe its just we are more aware being in business than someone on a salary.ie go to work,get taxed company you work for pays your super,increases the % amount they have to when gov say so. i may be wrong and its only what i feel