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I retired from full time work with maximum NI contributions. I registered as self employed stock photographer but being below the earnings threshold opted out of the additional NI contributions. Coming up to retirement age this year, 65 and a half for me, I discovered that I could make retrospective self employed NI contributions of ¬£145 per annum and the increase in state pension only requires me to live another 10 months to be in profit ūüôā¬†Seemed like a reasonable gamble. By comparison to get the same benefit¬† as an employee the extra contribution would be about ¬£750.

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Does that apply outside the usual 6-year limit? I have some incomplete years from way back I could do with topping up.

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3 minutes ago, Tony Collins said:

Don't know, I did 3 years. Ring up, I found them very helpful.

Just the usual then. I've not been on Class 1 for 30 years so no help to me. Thanks for mentioning it though, might help someone else. The current "catch-up" rates for the new pension are much more, as you say, about £15/week, so it's not going to happen.

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Posted (edited)
9 hours ago, Tony Collins said:

I retired from full time work with maximum NI contributions. I registered as self employed stock photographer but being below the earnings threshold opted out of the additional NI contributions. Coming up to retirement age this year, 65 and a half for me, I discovered that I could make retrospective self employed NI contributions of ¬£145 per annum and the increase in state pension only requires me to live another 10 months to be in profit ūüôā¬†Seemed like a reasonable gamble. By comparison to get the same benefit¬† as an employee the extra contribution would be about ¬£750.

 

Yes, if you haven't already contributed the maximum number of years, then paying the additional voluntary NI contributions should be well worth doing. To buy the same increment in your pension privately would cost many times more. You can get your own pension forecast here https://www.gov.uk/check-state-pension which will show the years of contributions you have already made and give a forecast of your pension. Although, a note of caution, there have been some problems with the accuracy of the forecasts. See https://www.thisismoney.co.uk/money/pensions/article-5202631/Is-state-pension-forecast-correct.html . If in doubt ask for a manual calculation.

 

Mark

Edited by M.Chapman
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I should probably have persuaded my wife to get her own Alamy account and register as self employed so that she could enjoy a similar top-up ūüôā

 

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Posted (edited)
5 hours ago, spacecadet said:

Just the usual then. I've not been on Class 1 for 30 years so no help to me. Thanks for mentioning it though, might help someone else. The current "catch-up" rates for the new pension are much more, as you say, about £15/week, so it's not going to happen.

 

It's only costing me £3/week in Class 2 self employed voluntary NI contributions. This isn't the retrospective top-up rate, I'm paying as I go, so to speak

 

Mark

Edited by M.Chapman

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I think you need to get a pension forecast which will tell you how much you will get as a state pension at retirement age, and whether that is the maximum that you can receive. It's not just based on the number of years that you have paid NI. The maximum state pension you can receive is not the same for everyone either!

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If you have reached 65 or whatever is the current retirement age and you are in a position to NOT draw your pension you should check out how much your annual payout will increase as you delay. You can delay until the age of 75. I was still doing pretty well in my 60s and for those ten years, my pension pot increased by 10.5% per year. You wont get that rate of interest anywhere short of robbing banks!  But I think things have changed. As ever, get and take good advice!

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On 05/10/2019 at 17:32, M.Chapman said:

 

It's only costing me £3/week in Class 2 self employed voluntary NI contributions. This isn't the retrospective top-up rate, I'm paying as I go, so to speak

 

Mark

The retrospective rate was always higher. It's now much higher.

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Hmmm.  This is very interesting to me being from out of town (outer space). 
 

Edo

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I had more than 30 years contributions, but as several years were contracted out, I had a shortfall.  I have back payed an number of years and will pay each year until I am 65 and this will get close to covering the shortfall. As others have said, the amount paid in versus the amount of pension increase is a no brainer.

I suggest anyone with a shortfall on their pension forecast would benefit from looking into this. If you worked long term for a large private sector company with a non-contributory pension, then there is a good chance that you were contracted out as companies used it to part fund their commitments into the pension fund.  Not sure if the same applied in the public sector.

 

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2 hours ago, Ed Rooney said:

Hmmm.  This is very interesting to me being from out of town (outer space). 
 

Edo

It's about social security contributions building up pension entitlement.. You need to have contributed for a number of complete years (35 IIRC) from the age of 16 to get a full State pension of about £160/week. This is more of a problem for the self-employed (that's most of us) because of our irregular or low earnings, or both. You get credit until you leave school, but you lose the college years, because you're not earning.

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40 minutes ago, spacecadet said:

It's about social security contributions building up pension entitlement.. You need to have contributed for a number of complete years (35 IIRC) from the age of 16 to get a full State pension of about £160/week. This is more of a problem for the self-employed (that's most of us) because of our irregular or low earnings, or both. You get credit until you leave school, but you lose the college years, because you're not earning.

 

Our system is about the same. I was working summers in college so I didn't lose years. I don't make anywhere near our maximum of $3,770 per month for someone who files at age 70. $2,861 for someone who files at full retirement age (currently 66). One reason I get less is that I've never had high income and I did claim early at 62 because I could still work part time and get my benefits. If I die before 82 it's a wash but if I live on (as I hope to do) it will have been a mistake to claim early. Anyway, I could use the money at the time. Can't we all? Glad to get what I get.

 

Paulette

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Yes, Paulette has it right. I get US SS.

 

I hoped I might be able to get some more here . . . and from Ireland and Spain and Italy too. No? What about all the money I gave those restaurants and pubs? 

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Just logged in and checked HRMC to see how many years I had... 26 full years + this year. Only another 8 needed out of 19.

 

Does that mean by the time I'm 56 I can tell them to bog off with their NI payments¬†ūüėā

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27 minutes ago, Duncan_Andison said:

Just logged in and checked HRMC to see how many years I had... 26 full years + this year. Only another 8 needed out of 19.

 

Does that mean by the time I'm 56 I can tell them to bog off with their NI payments¬†ūüėā

You wish.

No, you pay till retirement age. The extra years are money down the drain.

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1 hour ago, spacecadet said:

You wish.

No, you pay till retirement age. The extra years are money down the drain.

 

Haha... yeah, I have 8 years to think of a way to get out of it¬†ūü§Ēūü§£

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