| Topping up National Insurance 17:14 - Jun 17 with 18974 views | legoman |
When I reach State Pension Age in about 5 years time, I will be a little short of the maximum. I've got my estimate from the Gov.uk website and I've checked my yearly records. It seems I can top up my pension by paying something like £680.
I can see I can pay this shortfall by monthly Direct Debit or by quarterly payments, but I can't see how much these debits will be. Is it a case of dividing my shortfall of £680 by the number of months left in this tax year (9) so about £75 per month for 9 months? Anyone got any knowledge of this? |  |
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| Topping up National Insurance on 18:01 - Jun 17 with 18920 views | Glyn1 |
Are you saying that you will be £680 for every year, or just this year? As long as you pay it before you get to 65 I don't think it matters when you do it (I'm not an expert). |  |
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| Topping up National Insurance on 18:14 - Jun 17 with 18902 views | legoman |
| Topping up National Insurance on 18:01 - Jun 17 by Glyn1 |
Are you saying that you will be £680 for every year, or just this year? As long as you pay it before you get to 65 I don't think it matters when you do it (I'm not an expert). |
I have 2018/9 as an incomplete year. Gotta be honest I don't really understand how State Pension works. And yes I have until 2024 to pay it.
As it's a Direct Debit, I thought it was the receiver of the finds that sets the amount of the DD.
All a bit confusing I think | |
| "M'sieur, you said your dog did not bite!"
"That's not my dog" |
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| Topping up National Insurance on 18:26 - Jun 17 with 18882 views | ItchySphincter |
I think you have to opt out if paying it anyway so when you reach full contribution you just keep paying. It goes towards all the other services once you have qualified for full pension.
* edit - just realised I misread the OP. Dunno. [Post edited 18 Jun 2020 9:23]
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| Topping up National Insurance on 18:49 - Jun 17 with 18852 views | Whiterockin |
Make an appointment with pension wise. Any decisions you make will be stuck with you for the rest of your life. Take the free impartial advice. It stood me in good stead.
https://www.pensionwise.gov.uk/en |  | | |
| Topping up National Insurance on 19:16 - Jun 17 with 18813 views | monmouth |
You need to phone hmrc to get a code to pay it too anyway I think, or at least I had to. It’s well worth it if you definitely need the year, but check that fo certain (you are allowed a few blank years). If you have to pay it by 2024 then as far as I know you can pay bits at your leisure up until then as it’s a shortfall, so a payment of £1 at any time just makes it £1 less of a shortfall. Because of that I’d doubt they’ll collect on DD. Ring them, or try and get lucky with the online contact, but they are insanely busy will businesses at the moment, so I would sit on the phone. Or just wait, as you have tons of time. The one thing though, the amount you need to pay can increase on 6 April each year in line with any increased benefit.
Edit, payment reference I mean, not code. If you already have that then I’m pretty sure you can pay your own ‘instalments’ as and when you want, but check it out as I’m not 100%. I had to get a reference as mine was a shortfall from 2008. [Post edited 17 Jun 2020 19:26]
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| Topping up National Insurance on 19:38 - Jun 17 with 18782 views | Arthur_from_OTB |
If you don’t have an additional income to your state pension and you don’t qualify for a full state pension then you can claim Guarantee Credit which will give you the same income you get with a maximum state person. There might be a pound or two difference. Anyone over pension age who lives in the UK qualifies for Guarantee Credit. It doesn’t matter how much you have paid in National Insurance. I am not a pension expert and when I explained this to a "pension expert" he didn’t believe me. But judging by the information in the links below I am right.
"Pension Credit is an income-related benefit made up of 2 parts - Guarantee Credit and Savings Credit."
"Guarantee Credit tops up your weekly income if it’s below £173.75 (for single people) or £265.20 (for couples). You may still be eligible if you have savings, a pension or your own home."
"You must live in England, Scotland or Wales and have reached State Pension age to qualify for Pension Credit."
https://www.gov.uk/pension-credit
https://www.rights4seniors.net/content/guarantee-credit |  | | |
| Topping up National Insurance on 20:14 - Jun 17 with 18740 views | londonlisa2001 |
| Topping up National Insurance on 19:38 - Jun 17 by Arthur_from_OTB |
If you don’t have an additional income to your state pension and you don’t qualify for a full state pension then you can claim Guarantee Credit which will give you the same income you get with a maximum state person. There might be a pound or two difference. Anyone over pension age who lives in the UK qualifies for Guarantee Credit. It doesn’t matter how much you have paid in National Insurance. I am not a pension expert and when I explained this to a "pension expert" he didn’t believe me. But judging by the information in the links below I am right.
"Pension Credit is an income-related benefit made up of 2 parts - Guarantee Credit and Savings Credit."
"Guarantee Credit tops up your weekly income if it’s below £173.75 (for single people) or £265.20 (for couples). You may still be eligible if you have savings, a pension or your own home."
"You must live in England, Scotland or Wales and have reached State Pension age to qualify for Pension Credit."
https://www.gov.uk/pension-credit
https://www.rights4seniors.net/content/guarantee-credit |
If you have any savings that drops away pretty quickly to not very much if anything at all.
Say you’re £50 a week short on the state pension, savings of £35k (between you and your partner) knocks you down to nothing in pension credit straight away.
The savings credit has gone now unless you retired (or your partner did) before 2016.
Pension credit is good if you have a small amount in savings as you’re allowed £10k without it impacting you. But it drops away really quickly (a £1 deduction for every £500 in savings over £10k). | | | |
| Topping up National Insurance on 20:21 - Jun 17 with 18726 views | legoman |
Thanks all for your input. I'm not concerned with pension credit and the like. I have a decent enough private pension and so the state one is the icing on the cake. I just don't understand how I pay my £680 shortfall by direct debit! I can set this up online via gov.uk but what I don't understand is how much do I have to pay each month and over how many months | |
| "M'sieur, you said your dog did not bite!"
"That's not my dog" |
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| Topping up National Insurance on 20:29 - Jun 17 with 18710 views | londonlisa2001 |
| Topping up National Insurance on 20:21 - Jun 17 by legoman |
Thanks all for your input. I'm not concerned with pension credit and the like. I have a decent enough private pension and so the state one is the icing on the cake. I just don't understand how I pay my £680 shortfall by direct debit! I can set this up online via gov.uk but what I don't understand is how much do I have to pay each month and over how many months |
Have a look at this.
https://www.royallondon.com/siteassets/site-docs/media-centre/good-with-your-mon | | | |
| Topping up National Insurance on 20:39 - Jun 17 with 18684 views | legoman |
Thanks Lisa, that looks to be what I was after! | |
| "M'sieur, you said your dog did not bite!"
"That's not my dog" |
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| Topping up National Insurance on 20:44 - Jun 17 with 18673 views | londonlisa2001 |
| Topping up National Insurance on 20:39 - Jun 17 by legoman |
Thanks Lisa, that looks to be what I was after! |
I had a quick scan of it and it looks pretty comprehensive. Certainly a good starting point. | | | |
| Topping up National Insurance on 20:48 - Jun 17 with 18662 views | Dr_Winston |
| Topping up National Insurance on 20:21 - Jun 17 by legoman |
Thanks all for your input. I'm not concerned with pension credit and the like. I have a decent enough private pension and so the state one is the icing on the cake. I just don't understand how I pay my £680 shortfall by direct debit! I can set this up online via gov.uk but what I don't understand is how much do I have to pay each month and over how many months |
I believe you're basically looking at Voluntary National Insurance. It's not my area of expertise but I've added the link to Gov.uk which states the current rates. No idea if you can just pay a lumper and clear the deficit.
https://www.gov.uk/voluntary-national-insurance-contributions/rates |  |
| Pain or damage don't end the world. Or despair, or f*cking beatings. The world ends when you're dead. Until then, you got more punishment in store. Stand it like a man... and give some back. |
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| Topping up National Insurance on 00:29 - Jun 18 with 18529 views | Glyn1 |
WHICH magazine had a good article about all this a few months ago. If I can find it I'll get back to you. | |
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| Topping up National Insurance on 01:25 - Jun 18 with 18507 views | legoman |
| Topping up National Insurance on 00:29 - Jun 18 by Glyn1 |
WHICH magazine had a good article about all this a few months ago. If I can find it I'll get back to you. |
Thank you | |
| "M'sieur, you said your dog did not bite!"
"That's not my dog" |
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| Topping up National Insurance on 13:00 - Jun 18 with 18336 views | felixstowe_jack |
For every missing year you pay your state pension will increase by about £5 per week or £250 per year. You will therefore get your additional payment back in just under 3 years. May be a bit longer if you are receiving a private pension as you will have to pay 20% tax on your increased earnings. | |
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| Topping up National Insurance on 18:21 - Jun 18 with 18260 views | legoman |
| Topping up National Insurance on 13:00 - Jun 18 by felixstowe_jack |
For every missing year you pay your state pension will increase by about £5 per week or £250 per year. You will therefore get your additional payment back in just under 3 years. May be a bit longer if you are receiving a private pension as you will have to pay 20% tax on your increased earnings. |
Thanks Felixstowe, I get that bit. But the part I just don't understand is if I must pay £680 to complete the missing 2018/9 year and the Gov.uk site say I can pay it by monthly Direct Debit, how much per month do I pay and over how many months? | |
| "M'sieur, you said your dog did not bite!"
"That's not my dog" |
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| Topping up National Insurance on 19:28 - Jun 18 with 18233 views | felixstowe_jack |
If I were you I would set up a monthly saver account with your bank some banks are still paying 2.3% on those accounts . 12 monthly payments of £60 =£720, plus interest . Then after 12 months pay the tax people £680. You will have £40 left. | |
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