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I will be celebrating my 50th birthday this year and have been employed since I left school, always on basic rate tax and NI. If I can earn sufficient income from property how does this effect my state pension, if I get that old?
I phoned the Future Pension Centre and asked. A few days later I received a statement and I'm fully paid up. If I continue to be employed I will continue to make NI contributions, that's fair enough. But if I can live off a modest rental income (and possibly a part time job) I will still have a full state pension if I reach the qualifying age.
It was worth checking - and it's free!
I'm confused by mine. It says I'm fully paid up but I also have some contracted out pension and there isn't anything I can do to increase the amount. I think this means I'll get the full amount plus some contracted out pension too, but it isn't clear.
Mine is the same Alison, I had a Work Pension in the late 90's which was contracted out and is now frozen (Apparently they don't do this any more). I can't increase the State Pension but the Work Pension will pay out when I reach 60.
I have been adding my work pension onto the full state pension to calculate the total but now I am not sure if some will be deducted because of the contracted out bit.
Due to this thread I have discovered I won't be getting the full state pension due to contracting out for 33 years and not paying any NICS due to no work in the past 8 years.
The forecast seems to suggest that to recover the £35 I am losing I would need to pay at least £4800 at an average £750 per year for the 8 years I've missed.
That is a lot of money which I don't have to get an additional £35 in 8 years time.
Surely it just isn't worth doing!!??
What do you all reckon?
I can't be the only one in this quandary
If I recall correctly you need 35 years for a full pension so only need to top up two years, however the 33 years contracting out will be taken into account. How much would the two years cost you and what would it provide?
Perhaps you could pay class 2 contributions for a couple of years
I had 30 years in a few years ago
So I took on some self-employed work and started paying the stamp to take me up to 35 years
Lucky for me I know make Pension contributions from my Self Employed income and it helps with S24 being a HRT payer
Learn Change and Adapt ?????
As I undersrand it a couple of years ago (April 2016) you pension was calculated under both the old and new rules and you were assigned the higher of the two for contributions made up to that time. If you had contracted out those years did not contribute fully to the new pensions. For each year you contribute after then you get 1/35th of the new pension up to the new pension value.
If you need extra years to get the maximum and can make class 2 contributions that seems a real bargain. You'd get more than your moeny back in the first year of taking the pension. That is probably why such contributions are to be abolished from April 2019.
Phew, just checked and I have the required 35 years.
I had a feeling I only had about 30.
Having said that, it's only £186 p/w!
It helps to pay the S24 Tax Bill Dom