Editha

But if he paid SERPS then that might have bought him the extra years. I'm guessing.

BristolUK

Just double checking because on that page for me, the second bit makes no mention of years, just the £155 if I continue to contribute up to my date (2023).

I mention this as I have 32 years in so I only need three. It does not say £155 if I contribute another 3 years, it just says £155 if I continue to contribute up to 2023, in the same way you'll reach your max if you continue to contribute until 2029, except it appears you need 9 more not 6.

You didn't have your computer upside down when you looked?

Pulaski

I don't believe that SERPS "buys years", and I have certainly not seen anything that indicates that SERPS is adjusted for by adding years of contributions to the calculation.

Editha

But, looking at the gov website:https://www.gov.uk/new-state-pension/how-its-calculated, that is implied in the definition of the 'starting amount'.

Pulaski

I'm sorry, but I don't see anything on the page you have linked which "implies" any adjustment is made by tweaking the number of qualifying years you have.

Editha

From the site:

Then:

Pulaski

Yes .... nothing there implies to me that any adjustment is made to the number of qualifying years.

In fact the only mention of qualifying years is that "You can get more State Pension by adding more qualifying years .... " - this is something that "you" can do, not an adjustment that the DWP makes.

rebs

The new state pension (NSP) (which came in in April 2016) has a very simple calculation, that applies post April 2016. For every qualifying year (post April 2016), you earn 1/35th of the NSP amount. Any contributions after that will not increase the amount of NSP.

Someone starting to contribute post April 2016 it will take 35 years to get to the max amount.

However, that is starting at '0' and most of us that have worked prior to the new system being introduced, don't start at 0. We have a 'foundation amount'. This was calculated in 2 ways - old system (including SERPS, S2P etc) and a calculation using the new system. The larger of these 2 amounts was used as the foundation amount.

In the example of chawkins99 the foundation amount is £132.22 which took them 26 years to accumulate under the old system.

Starting from that amount, post April 2016 it could well be that the max amount is reached sooner than 35 years.

Essentially, post April 2016 it is more useful to think in amounts rather than number of years.

morpeth

If you have qualified for 26 years, and make 6 years of back-payments yes that is 32 years, But since it says you have until 2029 to pay, are they not simply including in forecast future years that it is expected you will pay to stay up to date ?

chawkins99

If that were the case, then I'd have paid 39 years by 2029 (45 years if I pay the back-payments as well).

I think I'm going to pay the 6 years' back payments at class 2 rates (if allowed), then re-assess. If, at that point, it says I am still short, I'll pay annually until I make up the shortfall.

rebs

Before you pay any years that are before April 2016, find out exactly what that will do to your foundation amount. It may be that qualifying years after April 2016 will make a greater difference to your final pension.

durham_lad

I registered on this HMRC site some while back and noticed the other day that it now has links, among others, to show my actual NI contribution record plus a pension forecast. Pretty nice to have all this accessible online these days.

https://www.tax.service.gov.uk/gg/si...&origin=PERTAX

mrken30

the totale estimated State pension includes a COPE estimate . This will be deducted from your pension when it starts paying out. The value of which is shown on https://www.tax.service.gov.uk/check...n/account/cope

Everyone will be shown a figure of £8,121.59 a year which doesn't take into account COPE.

My additional contributions show as Self-employment: 52 weeks

mrken30

not sure how NI credits affect WEP

National Insurance credits: 8 weeks

These may have been added to your record if you were ill/disabled, unemployed, caring for someone full-time or on jury service

BristolUK

So one would expect another 9 years were needed but you think it may be fewer.

At this stage they are none the wiser and needing 9 years would be the simple part.

In my case, I had my details from them in August, confirming I had 32 years and inviting me to buy ten years worth, when I only need 3 to get 35 in.

That doesn't strike me as simple.

Foundation amount? Never heard of it. Nothing on my account on the website and nothing using that expression in my August letter which went into a lot of detail...about anything other than telling me 3 years added to the 32 I have will get the maximum.