Urgent warning to anyone those age 45 + re: National Insurance & state pension

[lechatnoir]

Apologies if this has already been posted but the deadline to plug any NI contribution gaps is closing on 5th April and gaps in contributions could have a significant impact on your state pension so well worth looking at.
It may require you to pay for top-up (apparently not always but not applicable to me) but I was shocked to find I had gaps of a few years even though was employed & paying tax & NI!

Details & instructions on here: www.moneysavingexpert.com/savings/voluntary-national-insurance-contributions/

I’m another one whose years don’t add up. I’m 43 and I have made 26 years of contributions (god bless that Saturday job at 16!). My forecast says I only need another 4 years contributions to get the full pension, so 30 years in total not 35 (don’t have kids so no complications related to that).

I've just checked as i for some reason was assuming only contributed from age 21, not since my weekend jobs. I've already got 40 years of contributions! By the time I retire it'll be over 50!

@Renoir56 I remember a friends mum saying my friend should be sensible and get a ‘proper payroll weekend job like Flis’ as her waitressing cash in hand wouldn’t ‘count towards her stamp’. We had no idea what she was on about at the time, but she was right!

I didn't understand either. But I worked in a supermarket from 16 through 6th form and college and remember being disbelieving that I was contributing to my pension at 16!

Thanks so much for posting that info as I wasn't aware. I've fortunately worked 35 years with no gaps but have an extra 16 to work. Does anyone know if the state pension is capped at £185.15 regardless of whether you have worked more than 35 years. Apologies if that sounds like a daft question. I need to look into this more.

Thank you 💐

I can't get on the govt site as I don't have a passport, driving licence or credit history which they need for ID.

I have had a little look elsewhere and it's not looking good, it looks like it'll be less than £140pw at today's rates. DH will be working for a good few years after my entitlement starts though so hopefully we'll be able to save a little bit for emergencies at least then. At the moment we can't save at all.

Yes, that's the maximum State pension.

I'm doomed. Only really worked in low-paid work and to top up my missing years would cost approx £8,000. I don't have that amount of money.
I have 14 years left, apparently, but if I stay in my current job then I still won't be earning enough.

I am 51 and have had gaps, but only need to work another 3 years to get the max. If I stopped contributing now I'd get slightly less.

Hang on I thought paying NI was paying for todays pensioners. Thats what we are always told on here.

once you have 35 years your pension doesn't increase with extra contributions if you are working you have to pay NI but if you are not working you do not have to pay NI even if not claiming JSA, the limit at which you start paying NI is lower than the limit at which you start paying tax.
mine is fully paid up at age 54

I left school at 16 got a job as an apprentice dressmaker at a local ‘Madame Modes’ type establishment. (A little back street dressmakers in an old terraced house).
I was paid cash weekly, a pretty low wage pre decimal £2.10 shillings a week ( this was in 1965) my pay slips showed deductions of Tax and NI from the gross pay and my take home pay corresponded with this amount. My dad advised me to keep all payslips “you never know what round the corner pet”.
Fast forward a year or so later I got appendicitis and needed time off work, I sent my sick note off to claim sick pay, I got a letter back saying I wasn’t entitled to any as I’d not paid any NI cont.
My dad took all of my payslips in to the employment office for me as I was still in hospital. There was a huge investigation into the dressmakers book keeping methods. It transpired the boss was deducting tax and NI from all of us but not paying it forward, she got a huge fine and had to pay the missing deductions. Our contribution records were corrected.
Wise old dad knew what he was talking about.

Thanks so much for the response.

I’m 3 grand short 😭😭😭

it does say I need to pay 11 more years contributions.

Yes the NI £££ goes into the Treasury and right out again in the form of State Pensions for the current pensioners. The system was set up that way from the start such that every generation pays for the one before it.

So the NI £££ you pay in, literally buys you NI points (1 point per full year) towards your future state pension. But it will be the generations younger than you who will be paying in the NI ££££ to the Treasury that your state pension will be paid from.

Wow. Well done your Dad.

If you look at your forecast on your government gateway it tells you. I work for NHS and I was quite young when they contracted us out, I had no idea and it was never explained to me. I lose 17.33 a week and can't make it up. I pay a huge amount in NI contributions so it's frustrating. My understanding is that it's added to my NHS pension but I'm not sure really. I also pay about 10% into my pension to cover the shortfall (again no choice) but obv the pension is really good so not complaining, just find it really odd that these things happen without any real choice/explanation.

Thanks for tip! I checked and am OK but how on earth is anyone supposed to know this. Gov agencies are quick enough to tell us when we owe them money but not the other way.

For those who contracted out, those contracted contributions would have been paid into a pension scheme, either your employers own scheme or a private one. On retirement you should get a pension from this in addition to your state pension.
My DH was advised by the contracted out pension scheme to contract back in as he would have had a shortfall in his NI contributions. On retirement he got his contracted out pension plus his full state pension.

Oh, I seem to have a small amount contracted out, but I didn't really know that I have another pension (albeit small) somewhere. I'll have to try to track it down.

I am confused

Have the rules changed.

I was told last year by Pensions Dept that I had 7 years to top up my pot.

Has this changed?

Do I need to top up by April if I do no intend to work again? Thanks

I was in a low paid school kitchen job for a few years, not enough hours to generate NI, but then I was off work with throat cancer and would not have been in a position to change jobs even if I wanted to.

Is there any sort of safety net for this situation I will pay them if I have to, but if Surrey County Council payroll didn't do something that they should have done then I want them to rectify that.

Advice welcome, abuse not so much.

"Can’t think of many who’d not reach 35 years? 🤷🏼‍♀️"

I might not because I live abroad. However, I'll get a pension from that country. I am wondering whether I should make voluntary contributions to my UK pension too though.

"(god bless that Saturday job at 16!)."

Looks like I was just given all the credits at 16. Not sure a job just on Saturday would pay tax and NI anyway. I seem to have no contributions at all when I was at uni so my summer jobs didn't help.

@leslavandes and @DoorstoManual
check the gov.gateway site for your state pension forecast and then you will see how many more years you have to contribute, and when you can get the state pension. If you are young enough you may only need 10 more years of contributions and not be able to collect for another 20

it really is all done to seeing your own forecast