The pressure might be off now, but this is still a very important subject. So I made a follow up, not only to say that the deadline has been updated but also to answer some of the questions you raised in the comments of the previous video.
Just read about pension crashes in the news, the impact is worrisome, cos I rely on pensions. At this point, I'd need diversification ideas for a 350k portfolio, I know it's a good idea to have backup retirement income sources, any suggestions please?
your advisor must be really good, do you mind if I look up this person assisting you please? i've been holding on to a bunch of stocks that keeps tanking and i'm fed up, if to sell or not
I've just retired recently and I must say I found this video informative and great to review. These psychological concepts are much more useful for individuals attempting to avoid mistakes than I realized when I was first introduced to them. This is probably why Warren Buffett talks so much about temperament being crucial to his investing success.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Deborah-1x However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
I checked my record and found a year that they have made a mistake with, I called them and the person on the phone agreed it looks like a mistake. I asked if they can rectify it, they told me I need to send a written request, can't be done electronically. So I have done, but at present they are processing requests received in August 2022 and my expected date of reply is April 2024!
That's the problem we all face, it's a shame, I feel your pain mate, as a fellow retiree, I'd suggest you look into passive index fund investing and learn some more. For me I had my share of ups and downs when I started looking out for consistent passive income, so I hired an expert advisor for aid. And following his advice I poured 30k$ into value stocks and digital assets, I'm up to 200k$ so far, and I'm sure ready for whatever comes,
@@Deitricklaverne Honestly this cannot be overemphasized, helping people mitigate unforseen circumstances and mistakes, that's why I leverage aid in my investments.
@@Deitricklaverne the crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio, is this the case with you too?
Thanks Pete. Great video. I have tried calling the future pension line for weeks now to ask about NIC top up. You're quite right - it's impossible to get anywhere near a human and line just disconnects. So annoying and another example of UKs crumbling public services!
the annoying thing for me about the state pension is that to qualify for the full state pension you need to have 35 years of contributions, I had 50 years of full contributions so what happened to the 15 years I paid in and will get none back.
Like all benefits, your state pension is paid from general taxation, you weren’t building a pot of money with your name on it, just an entitlement to receive the benefit. Your NI contributions paid for the pensions that were being drawn as you were working just as your pension is funded by those working when you retire. So you have nothing to “get back”, you have just passed the qualifying threshold. I have too but I know I’ve got another 15 years before I reach qualifying age and I’ll be working for at least 8 more of them.
It is gone, we lived through the zenith of our time. These bourgeoisie individuals in tandem with the corrupt govt. will take down this country like what happened to Rome. My condolences to anyone approaching retirement, you may have concerns over whether your pension pot will stretch to cover the rising cost of living, bad regulatory policies, bad energy policies and insane fiscal policies
I'm 54 and my hubby and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, we are finding it impossible to replace it. We can get by, but cant seem to get ahead. My condolences to anyone retiring in this crisis, 30years nonstop just for a crooked system to take all you worked for
@@annemoore4461I feel your pain mate, as a fellow retiree I'd suggest you look into trading services and investing and learn some more. For me, had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor-JOFFREY ADAM SMITH-for aid, and following him advice, I poured $30k in value stocks and digital assets,Up 200k so far and pretty sure I'm ready for whatever
@@annemoore4461Joffrey Adam Smith is a portfolio manager and investment advisor. Joffrey Adam Smith has demonstrated expertise in investment strategies and has been involved in managing portfolios and providing guidance to clients.
@@dilara4130From being financially empty-handed to dedicating months of hard work delivering for Uber eats, I managed to accumulate approximately $20k, which I then invested with Joffrey Adam Smith. Currently, my investment has grown to $128k, and I couldn't be more delighted that you've brought him up in this conversation
I would discourage anyone from relying on pension credit. My mother was on pension credit as HMRC apparently 'lost' a load of her contributions and it was easier for them to put her on pension credit than go and find her lost contributions. As a consequence she was not allowed to have more than a certain amount in savings, and worst of all, when she came to inherit a very modest private pension from my late brother, it came right off her pension credit so she was no better off. If she had a full pension, none of that would have mattered.
@maxwellboyne2770 I agree. Unfortunately I never learned about this until after my father passed away. when i took the matter up with the DWP, they did not want to know and by that time I was fighting banks and insurance companies on my mother's behalf. At least those battles we won and got compensation, though my attempt to bring a prosecution against Nat West for attempted fraud had to be dropped. The DWP, banks, insurance companies and others, take advantage of the elderly and the vulnerable. I came to realise this as soon as I started to help my mother run her affairs. It really is a disgrace. Thanks Max for your response, much appreciated.
This is the most informative and clearest explanation I have ever heard. I went to the government sponsored scheme several years ago and came out thinking that I knew more than the advisor. Had I seen this video then it would have saved me years of anxiety and worry. Keep up the good work 👍🏻
People grappling with the difficulty of meeting essential expenses often encounter this situation due to inadequate savings during their working years. The decisions taken in readiness for retirement carry extensive consequences, as demonstrated within my own family dynamics. Differing investment approaches yielded disparate results. Guided by a financial advisor, I'm currently retired.
Indeed, that's accurate. I'm currently in my mid-50s. My wife and I were on a similar path until a couple of years ago when I decided to shift my investments to her wealth manager. While I haven't quite caught up to her accumulated profits over the years, I'm at least earning more now. I'm generating income even before retirement, and my retirement fund has experienced remarkable growth compared to what it would have with just the 401(k). It's quite amusing.
It's regrettable that many individuals lack access to such insights. I understand why people might become anxious. Insufficient information can indeed pose significant challenges. Personally, I've been able to generate over $25k passively simply by investing through an advisor, and the best part is, I don't need to exert much effort. Regardless of economic fluctuations, skilled wealth managers consistently deliver returns.
@@hunter-bourke21 Could you guide me on how to get in touch with your advisor? My funds are being eroded by inflation, and I'm seeking a more lucrative investment strategy to effectively utilize them.
"Camille Alicia Garcia" serves as my advisor, bringing extensive qualifications and experience in the financial market. Her deep understanding of portfolio diversity positions her as an industry expert. I suggest delving into her credentials for further insight. With her considerable experience, she offers valuable guidance to anyone seeking to navigate the complexities of the financial market.
Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
If you have accumulated SERPS and if it and the old pension flat amount is above the new pension flat amount then you cannot be penalised by the new system. So, you get the difference protected. So, it is possible to get a State Pension payment above 12570. Especially as this government wants to extract as much as possible out of poor people by not increasing the lower tax threshold.
In 2012, I had enough credits under the old system for a full state pension. In the autumn statement that year, changes to the state pension were announced but weren't formally implemented until some years later. Because I knew I would fall short of the new 35 year requirement, I kept paying self employed NI voluntarily. In 2013, I only made a partial voluntary contribution and the state pension website says that it is assessing whether this payment will qualify as a full contribution. This has been the status for many years, so I phoned the helpline to see whether I can top up my contribution for that year. It transpires that I cannot. Because I already had the maximum 25 years of credits at that point in time, I cannot top up any contributions prior to the new 35 year rules coming into formal effect, which didn't happen until a subsequent date. I wonder how many other people have been caught by this quirk of the state pension changes?
When you say credits do you mean your being given NI contributions because you have not actually paid the money in eg unemployed, sickness and other situations pete refers to? If so I can understand that there is a limit, there should be a way of ensuring there is a benefit from working and having the money deducted from your income V being credited as though you had worked and contributed when in fact you haven’t. Simply put why should someone who had been classed as unemployed gain the same state pension as someone who has worked? That to me makes no sense whatsoever
@guyr7351 I have worked continuously since leaving university. In 2012, I was made redundant and decided to start my own business. At the time I was made redundant, I had enough NI contributions to qualify for a full state pension, despite having been contracted out of SERPs/SSP during part of my employment. Shortly after being made redundant, the chancellor's autumn statement announced that a new state pension would be introduced, but to qualify for this, 35 years of contributions would be needed instead of 25. Start-up costs meant that my business did not make much profit in the early years, so I could have opted out of paying Class 2 NI contributions but I chose to pay them voluntarily as I knew I would have to make another ten years NI contributions to qualify for the full amount of the new state pension. I have since discovered that one of the voluntary contributions I made was worthless because, at the time I made it, I already had the maximum 25 years contributions, and no further contributions would count. This is because, although the 35-year scheme had been announced, it had not come into effect yet. I have a partial year of NI contributions for 2013/14 on my account. I paid one six-month instalment but not the second due to a change in the way self-employed NI was being collected. Even if I retrospectively top it up, it wouldn't count towards my state pension because, at the time I contributed, I had already maxed out at 25 years' contributions and the 35 year rule, although announced, had not become effective yet. I expect that other people will have been affected by this quirk, possibly to a larger extent than me. I suppose I could try to pursue this with the ombudsman, but it's not worth the hassle for one year of Class 2 contributions and the ombudsman would likely rule that I was foolish for voluntarily making contributions when I didn't need to. They'd likely say it serves me right for trying to be proactive.
@@porrohmann thanks for the explanation, I did ask for clarity ref the wording. This system seems crazy but to be fair there is consistency in that I have been qualified for a full pension for a few years now, but of course have to still pay NI even though you could say in Theory I am getting no further benefit. Some of our support systems are a right dogs dinner, look at the number of married women the state has admitted were underpaid but will not get full compensation. I can see when the state pension gets stopped that your NI contributions or a good portion will be diverted into your employers pension scheme so you build up your pension fund substantially. For many this would be preferable as a fund over £300K would easily be achievable
@maxwellboyne2770 because he has paid 25 years of NI as an employee and then further payments as self employed. For sure he won’t be relying on it 100% but he should get what he is entitled to
Worth mentioning that the plan now is to digitise some of the processes that the Future Pensions Service offer such as the unique number you need in a bid to leave the phone lines open for those who are closer to claiming their state pension and are seeking specific personal advice.
Thank you Pete. @meaningfulMoney You explain we need 35 years to qualify for state pension. I have 42 year’s contributions. Up until I retired early at 56 in 2020 to care for my Mum I had 42 full years contributions. However, my statement says I have 3 more years contributions to get the full pension. I don’t understand and note a few others stating they had over 35 years. Is this something you could cover in a follow up, please? I’ve been trying the future pension centre for months without success! Thank you.
Another great vid, keep them coming Pete, checked my state pension forecast and even though I was contacted out for the maximum period possible I will get the new maximum state pension by paying one more year, that I’m planning on working anyway so happy days. So not sure this applies to everyone in my situation but looks like you need to pay NI at 12% for 8 years since 2016 to make up any contracting out short fall? I’ve 42 years already and get my state pension in 2033.
Before 1978 you paid NI contributions for your flat rate pension. After this, an additional 2% was taken for SERPS. If you contracted out, only the SERPS bit was redirected. Not the flat rate bit. So, it is shocking that contracted out years penalise you in some way, when you have always been contributing the flat rate amount.
I have 37 Years… Max State Pension.. was contracted out with a Previous Employer however this is cancelled out by paying into SERPs back in the day… Pete, I will be joining your channel soon, have some interesting questions that you can use for videos (or I will pay you for) ❤ your channel and content
Excellent 'Jim Bowen' comment very funny. I do like the superb clarity of your explanations regarding this subject. I had seen the cope figure after scrolling down on my pension info page and thought, bloody hell the bstads are going to deduct it! Meaning that it was all a waste of time, but, you've allayed my fears there. 😊
@meaningfullmoney , you should do a vid on deferring state pension warning of pittfalls ,I deferred mine for 5 years got an extra £62 a week , will need to live till im 90 to get back what lost due to deferring, not a good idea of mine
Depends on your tax rate. I have a friend who deferred his state pension for two years as he was in the 45% tax bracket, and he's in profit after about 3 years.
@@owensmith7530as Pete said state pension is paid assuming this is your first pot of income. Do is tax free. Whenever I have looked at the extra they would pay V deferring the gain takes about 16 years of increased pension V deferring taking for one year. Seems madness to me
@@guyr7351 But if you are earning 200K a year on top of state pension (rare I will admit), more of what you earn gets taxed at 45% because your state pension increases your overall income. In that case the reduced overall tax burden pays for deferring state pension.
I’ve been watching your videos intently as I am slowly approaching retirement. I am homeless after a divorce now living in a campervan. I have a teacher’s pension which pays a fixed sum and a works pension, an occupational scheme, of about £100,000 which I could Flexi drawdown as I would like to take more each month until I am 75 to pay towards a mortgage on a flat. I have spoken with my IFA about Flexi drawdown but he states that it’s near impossible as the regulator FCA are against this because it’s a guaranteed scheme. Is there any way round this.
Good news for me, I've signed up to the government portal and while it tells me I've got 2 partial years (due to university) it doesn't tell me how much it would cost to top them up, it just says something like "We're checking to see if your contributions for this year count towards full state pension, we'll update this once we've figure it out", and has been saying that for about a month now.
I can't get on the website, I've tried contacting them numerous times since August 2022, but that too was a waste of time. They screwed us by moving it to 66, and I never got informed, so I expect to be screwed again. Their greed will be their downfall, no-one gets away with it, sooner or later it will come back to bite them.
Great advice and there is little option but to keep calling the Pension Helpline. I started in March with an email, have made numerous calls and curiously had an email reply this month, 3 months later, and providing an incorrect contact number! No choice but to keep going however, it should be worth it as the return on investment topping up your state pension is better than other savings returns (clearly personal circumstances vary hugely though). My pension was contracted out, seemed a sound idea at the time (1976] however it’s limited to a max increase of 5% p.a. As it’s currently our only source of income the cost of living increase is uncomfortable so any opportunity to maximise potential income should be researched.
I check my national insurance record frequently there are some years missing when I click on the year it says we’re looking into this and will update shortly, they have been saying this for years.
That change in april 2016 cost me £2563 a year on my state pension when i retired last year after paying tax and ni for 51years stil paying income tax now
This is all fantastic information. I tried to access/log in to the site but it couldn't verify me and I got locked out. I used my maiden name, married name, hypphenated, nothing worked... I live in the US, (since '91) so I need to take a day off so I can call. lol
I wish you would have included other tax free benefits (for example PIP, Attendance Allowance, Rent A Room) - please do a video on this when one receives a state pension.
I was accepted to pay voluntary Class 2 contributions as I had a shortfall of 10 years since moving to Canada in 2008. I wired enough money to pay the shortfall but something went wrong and they did not get the reference number. I sent proof that I had wired the money. That was in October 2021 and I just got a letter this week, 2 years later, statingthat the payment was traced to my account and I was credited with 10 years.
Was told to file a CF83 for missed years living abroad with HMRC, that it could be next February before processing. Yet you say future pensions are supplying 18 digit numbers to make payments with now…what should I do?
Mine says 36 but not getting full pension? 1 partial year . Just found I can claim specified care credits for minding our grandson. Might be worth covering this for your followers
Back in 2021 I contacted them and I am nine years short for a full pension not sure if I should bother paying any shortage due to getting social security here in America when I reach retirement
Another good video Pete, regarding state pension and taxation if the government do not raise personal thresholds then with high inflation soon the state pension will be over the personal tax allowance. This is of course assuming triple Lock stays in place, inflation remains high, and also if the government sticks with the plan not to raise the personal Allowance. The state pension is a minefield with rules and the various pre 2016 rules but as we move forward will become more straightforward. I have seen various reports recently that a huge number of people don’t know they can take 25% tax free from their personal or company schemes. Don’t realise they can retire early with reduced benefit, don’t know can take money from DC scheme at 55 raising soon to 57. Basically as been said before a black hole of knowledge that really should form part of educations life skills. This should also cover mortgages, loans, credit cards etc and how debt can seem easy at first but can then Consume income. Hopefully if Covid and lockdown / possible closures of business did anything it was to focus people on removing as much debt they had as possible. Get some savings in place although with energy costs and now mortgages rising so steeply many have zero cash spare.
Every time I have sought financial advice from, banks, building society's and pension advisers I have lost money, every time, when I invest ony own or gut feelings I have made money. Sort your finances out and forget about worrying about money or you will not enjoy your retirement and just prey every day to the god of Money.
I'm annoyed they extended the deadline last minute. I forked out £6000 to catch up, I would liked to have spread the cost a little. HOWEVER ... now that I PAID for a pension under certain promises ... has the government painted itself into a corner? Can I sue for damages if they decide to move the pension age or reduce the pay outs in the future? I feel like I and everyone else would win such a suit.
I did exactly the same paid 6 k in February as told after April 1st 2023 I could not top,up my shortfall ,I borrowed the money with £300. Interest so I would not have down that just paid a bit each month over the next 2 years , scamming dirty liars !
I think it's worth paying for any gaps if you can, as although there is this new 2-year extension, the cost of a missing year could easily go up. Better paid now, IMHO.
I started taking my pension last year (I was 66). However, I have 46 years of full contributions. Why am I not getting the full state pension? I am just under £2000 short of that and even paying the 4 years that I am short will not get me the full pension. I was not contracted out, but did pay into a private pension from age 21 onwards.
I have issuses with company pensions .I can t get info .most companies I work for gave as part of package and I can t unravell .I have tried talking g to pension tracers but they need the details only they companies had
You are correct but if your non-interest income is over £12,570 it will reduce your tax free savings starter rate. If you earn £14,750 you only get £3000 starter rate and so on. The good news is you also get the £1000 tax free savings allowance that everyone gets on top, so with the right combination you could earn £18,750 pa and pay no tax…….
@@dino6507 Everyone in the UK gets an allowance to receive interest on savings without paying income tax on it. If you are a basic rate tax payer (20% income tax) that allowance is £1000, if you pay 40% income tax it is reduced to £500 and disappears completely for higher rate tax payers. When interest rates were low, few people were impacted but now many more are.
One of my final salary pension schemes are talking about deducting a “state pension offset” from my company pension. Is this allowed? I only worked for this employer from 2008 for 5 years.
If anyone does not work does not sign on for any reason do they get a pension, no savings not a thing so could not make up contributions asking for a friend
Great video as always. I find it quite interesting (and a little unfair) that someone who for example is paid £200K and therefore has a very high NI contribution wouldn't get the full state pension if they only contributed for say 25 years. they would've paid so much in NI but still wouldn't be entitled to it
That's the socialist part of the system. That same person though would have a huge personal pension compared to someone who has been working 37yrs close to minimum wage. The couple of thousand a year is not going to be noticed by the first person, but could be life saving for the second ie heating in the winter.
@@liammacaodha4783 Not sure what you mean but 25 years was just an example. Currently you have to have 35 years of qualifying years to receive the full state pension amount. My point is there are people that will pay a large contribution to National Insurance over a period of less than 35 years (for example 25 years) put won't be entitled to the full state pension amount
@@Bulldogridesagain You're right and I agree there should be an element of socialism in the calculations for sure. I do think though that as well as a number of qualifying years there should also be a total NI contribution number if you contribute to less years. That number can be as high as the government wants to make it but at least people that contribute a significant amount get something out of the system
@@MrWhoAmI57 correct although you could argue the way our government systems work this would cause a nice lump of administration to be added into running everything. It does seem crazy that there is a state pension that is maximised regardless of how much you have contributed. I think we might see in the future if and when they plan to drop the state pension that they add what you would get deducted via NI as compulsory into your company scheme. So that pension becomes very much up-to the individual.
Hello! I need some help with sitting the FA2 (pensions administration exam) , CII have only helped so far and I’m struggling with the pass. Could you point me in the direction? Thank you :)
Thanks for the update Pete, unfortunately you didn’t address my question. My projection says I am £20 per week short of the full amount, so I must have less than 35 full years right? Except that the NI record shows I have 38 full years. I know this is because I was contracted out but my frustration is that it appears I can’t retrospectively top up the missing (hopefully cheap) years because there aren’t any!?! I have to pay future years to attain full state pension - is that correct?
Thanks for the video Pete, very informative. I have the opposite way to what you have. It says on the forcast i have 5 more years to get a full state pension. Yet when i go NI record, that states i have 33 years fully paid. Which one is telling the truth here?
Unfortunately both can be correct. I have 38 full years NI contributions but am still 4 years short of a full state pension. In my case it’s the result of being contracted out in the past. Unfortunately it appears this precludes the option to top up previous ‘not full’ years because there aren’t any! It’s confusing and infuriating
I would not have thought so. That's why it is important to get this sorted out well before you receive your state pension. A word of warning. When you do make additional contributions, they take forever to appear on your record. Again, a good reason to make the contributions well before you start receiving the pension. I paid about 4 grand in additional contributions and it took about 6 months to appear on my record. The end result was 20 quid a week more on my pension, so I have to live 4 years after my pension to make it worthwhile. I'm 2 years and counting.
I never see mention of the self employed being penalised because of paying reduced NI contributions,yet throughout their working life have paid an extortionate amount of Class 4 on the business profits. I queried this at the time I retired and was told it wouldn't count ss it was essentially an actual tax. If so,it accounts for approximately 30% on earnings for no benefiit. Robbery.
it is mandatory to contributed 35 full year national insurance contribution to get full state pension ? is it possible to skip contribution to national insurance and routed to pension contribution let's say for 10 year ? for the simplicity an individual contribute 25 years to state pension and routed the 10 years contribution to define contribution pension scheme instead of contribution to state pension. I am looking forward your kind opinion . Thanks and Regard.
Have tried for months to get update on deferred pension. Apart from one nonsense reply my emails and phone calls are ignored. Is there an ombudsman who can help?
I have 43 years of full pension credit, yet I still don’t get the full state pension. I worked for BT until 2002 so I was contracted out of the state pension 2. How can I be sure that DWP have calculated my pension correctly? I have some years where my year is not full - how can I be sure that I will improve my pension if I top up these years ( after 2002) or will it make no difference because I was contracted out. I cannot get an answer to these questions from anyone.
I am in a similar situation. You need to contact the future pension centre (by phone which is painful but I did get through eventually) they can go through your personal situation and confirm which years and what benefit for what cost. I don’t think there’s another way…..
I haven't worked since 2019 i receive £72 a week mineworkers pension i don't work but now receive industrial injuries benefit 20% for life £42 weekly and £83 a week reduced earning allowance this shows on my industrial injuries benefit letter as 60% industrial injuries benefit what i am asking would my national insurance contributions be paid by the government thank you for any advice off anyone who may know
My projection is showing 36 years of contributions and a full new state pension, fine so far. However I understood that being in higher education would qualify for NI contributions, yet my university years from 1984 to 1987 show as no NI contributions. Even more bizarre my 6th Form school years from 1982 to 1984 show as full NI years when they shouldn't. But given my projection shows a full new state pension and I plan to work for a number of years, it isn't worth chasing these discrepancies.
I was also contracted out for over a decade (I have the money for that in a pension fund) but it doesn't appear to have made any difference, and I have no COPE figure. Looks to me like they lost track of the fact I was ever contracted out. While these mistakes are almost entirely in my favour it does not inspire confidence.
@@owensmith7530I don’t think they are discrepancies, mine also shows full NI contributions for 6th form but none for university. My wife’s is the same so for whatever reason that’s how it is.
That explains it. I've got full years during 6th form in the 80s. Which I thought was a bit odd as I only worked part time for a short while. Nothing during uni. I was also contracted out. for a couple of years in the early 90s. So far I have 33 years full contributions. I plan on working for another 9 years so will have more than the 2 more years needed for full pension.
Hi Pete, I submitted a request recently with the aim of filling in missing years and beating the impending deadline. However, as you mentioned, the deadline has now been moved back to 2025. While reviewing the online notice, I noticed the term "eligible taxpayers" mentioned. This got me thinking about my eligibility, considering that I have been residing in Australia since 1985. Consequently, I have missed several years of NI contributions. Additionally, as a non-paying UK taxpayer, I'm uncertain whether I would qualify for the deadline extension. I would greatly appreciate it if you could provide any information or guidance on this matter. Thank you in advance for your assistance.
What amazed me that there was no accountability for input whilst service family to be told down stamp due to their errors x 3-18yrs.. Some service spouse input happens abroad as working UK diplomatic bases.. Aka services input
I had a friend on Pension Credit and she was very happy with it until she received a £40,000 legacy from a relative. Her PC was cut and she had to live off the legacy rather than having a nest egg.
Hang about here... On the SP taxation. Am I right in thinking you will pay tax on drawing any of your private pension regardless ? So basically government know start getting back most of the tax relief they initially gave you, so it was only a loan. ha ha We know the state pensions swallows up your personal allowance. So that's your allowance gone. So drawing your private pension is going to be at 20% tax up to your 50K allowance. So surely you might as well draw the maximum in the 20% band, thats £37k per tax year. Then whack 20k of it in an ISA for a start. 7k tax and 10k spare.
It’s not quite as simple as that but your thinking is good. For example you’ve had tax-free growth in the tax relief you had added to your pension, so they’re not getting it all back! As to whether you should draw out up to your HR tax band, much depends on any other sources of income.
@@shellyperera2010He means because of the ‘starter rate for savings’ where you get a £5000 tax free allowance for savings interest if you earn less than £12,570. It reduces progressively to zero if you earn £17,750. In addition there is the £1000 tax free savings allowance.
Can't believe you tell people that they have contributed to their own state pension, that's just not true. You know you only pay towards others pension, when you retire, others pay for yours.
If rich pensioners are so concerned about the UK not been able to afford the trip lock then why not the so call rich pensioners return or refuse their pensions and give it to the needy UK state pension is pathetic for the 5 th 6 th 7th Haha largest economy in the world pay urm right😂
If u want to see how it works I will tell u /31 leopold rd Felixstowe ip11 7 np worked in pensions all her life and ripped everybody off /the elderly working class get back what she stole its with her family all the cash stashed with them
The crux of the matter is they don’t want anyone who’s worked all their lives to claim what there entitled to but continue working and contributing to shore. Up a shitty system
Thank you Pete. @meaningfulMoney You explain we need 35 years to qualify for state pension. I have 42 year’s contributions. Up until I retired early at 56 in 2020 to care for my Mum I had 42 full years contributions. However, my statement says I have 3 more years contributions to get the full pension. I don’t understand and note a few others stating they had over 35 years. Is this something you could cover in a follow up, please? I’ve been trying the future pension centre for months without success! Thank you.
The pressure might be off now, but this is still a very important subject. So I made a follow up, not only to say that the deadline has been updated but also to answer some of the questions you raised in the comments of the previous video.
Thanks Pete been looking out for this .
Pete can you do anything to remove the “invest with jo blogs type posts we get”?
Just read about pension crashes in the news, the impact is worrisome, cos I rely on pensions. At this point, I'd need diversification ideas for a 350k portfolio, I know it's a good idea to have backup retirement income sources, any suggestions please?
your advisor must be really good, do you mind if I look up this person assisting you please? i've been holding on to a bunch of stocks that keeps tanking and i'm fed up, if to sell or not
I've just retired recently and I must say I found this video informative and great to review. These psychological concepts are much more useful for individuals attempting to avoid mistakes than I realized when I was first introduced to them. This is probably why Warren Buffett talks so much about temperament being crucial to his investing success.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Deborah-1x However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@@Fatihu-nq Oh please I’d love that. Thanks!
@@Deborah-1x Clementina Abate Russo is her name
Lookup with her name on the webpage.
I checked my record and found a year that they have made a mistake with, I called them and the person on the phone agreed it looks like a mistake. I asked if they can rectify it, they told me I need to send a written request, can't be done electronically. So I have done, but at present they are processing requests received in August 2022 and my expected date of reply is April 2024!
Same
That's the problem we all face, it's a shame, I feel your pain mate, as a fellow retiree, I'd suggest you look into passive index fund investing and learn some more. For me I had my share of ups and downs when I started looking out for consistent passive income, so I hired an expert advisor for aid. And following his advice I poured 30k$ into value stocks and digital assets, I'm up to 200k$ so far, and I'm sure ready for whatever comes,
@@Deitricklaverne Honestly this cannot be overemphasized, helping people mitigate unforseen circumstances and mistakes, that's why I leverage aid in my investments.
@@Deitricklaverne the crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio, is this the case with you too?
@@gregorridavichko nah I can't say I relate, Chris Ryan Stewart charge is one off, and pretty reasonable when compared to what I benefit in return.
Thanks Pete. Great video. I have tried calling the future pension line for weeks now to ask about NIC top up. You're quite right - it's impossible to get anywhere near a human and line just disconnects. So annoying and another example of UKs crumbling public services!
the annoying thing for me about the state pension is that to qualify for the full state pension you need to have 35 years of contributions, I had 50 years of full contributions so what happened to the 15 years I paid in and will get none back.
Like all benefits, your state pension is paid from general taxation, you weren’t building a pot of money with your name on it, just an entitlement to receive the benefit. Your NI contributions paid for the pensions that were being drawn as you were working just as your pension is funded by those working when you retire. So you have nothing to “get back”, you have just passed the qualifying threshold. I have too but I know I’ve got another 15 years before I reach qualifying age and I’ll be working for at least 8 more of them.
It is gone, we lived through the zenith of our time.
These bourgeoisie individuals in tandem with the corrupt govt. will take down this country like what happened to Rome. My condolences to anyone approaching retirement, you may have concerns over whether your pension pot will stretch to cover the rising cost of living, bad regulatory policies, bad energy policies and insane fiscal policies
I'm 54 and my hubby and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, we are finding it impossible to replace it. We can get by, but cant seem to get ahead. My condolences to anyone retiring in this crisis, 30years nonstop just for a crooked system to take all you worked for
@@annemoore4461I feel your pain mate, as a fellow retiree I'd suggest you look into trading services and investing and learn some more. For me, had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor-JOFFREY ADAM SMITH-for aid, and following him advice, I poured $30k in value stocks and digital assets,Up 200k so far and pretty sure I'm ready for whatever
@@annemoore4461Joffrey Adam Smith is a portfolio manager and investment advisor.
Joffrey Adam Smith has demonstrated expertise in investment strategies and has been involved in managing portfolios and providing guidance to clients.
a search with the keywords "JOFFREY ADAM SMITH" should get you what you need
@@dilara4130From being financially empty-handed to dedicating months of hard work delivering for Uber eats, I managed to accumulate approximately $20k, which I then invested with Joffrey Adam Smith. Currently, my investment has grown to $128k, and I couldn't be more delighted that you've brought him up in this conversation
I would discourage anyone from relying on pension credit. My mother was on pension credit as HMRC apparently 'lost' a load of her contributions and it was easier for them to put her on pension credit than go and find her lost contributions. As a consequence she was not allowed to have more than a certain amount in savings, and worst of all, when she came to inherit a very modest private pension from my late brother, it came right off her pension credit so she was no better off. If she had a full pension, none of that would have mattered.
@maxwellboyne2770 I agree. Unfortunately I never learned about this until after my father passed away. when i took the matter up with the DWP, they did not want to know and by that time I was fighting banks and insurance companies on my mother's behalf. At least those battles we won and got compensation, though my attempt to bring a prosecution against Nat West for attempted fraud had to be dropped. The DWP, banks, insurance companies and others, take advantage of the elderly and the vulnerable. I came to realise this as soon as I started to help my mother run her affairs. It really is a disgrace. Thanks Max for your response, much appreciated.
This is the most informative and clearest explanation I have ever heard. I went to the government sponsored scheme several years ago and came out thinking that I knew more than the advisor. Had I seen this video then it would have saved me years of anxiety and worry. Keep up the good work 👍🏻
People grappling with the difficulty of meeting essential expenses often encounter this situation due to inadequate savings during their working years. The decisions taken in readiness for retirement carry extensive consequences, as demonstrated within my own family dynamics. Differing investment approaches yielded disparate results. Guided by a financial advisor, I'm currently retired.
Indeed, that's accurate. I'm currently in my mid-50s. My wife and I were on a similar path until a couple of years ago when I decided to shift my investments to her wealth manager. While I haven't quite caught up to her accumulated profits over the years, I'm at least earning more now. I'm generating income even before retirement, and my retirement fund has experienced remarkable growth compared to what it would have with just the 401(k). It's quite amusing.
It's regrettable that many individuals lack access to such insights. I understand why people might become anxious. Insufficient information can indeed pose significant challenges. Personally, I've been able to generate over $25k passively simply by investing through an advisor, and the best part is, I don't need to exert much effort. Regardless of economic fluctuations, skilled wealth managers consistently deliver returns.
@@hunter-bourke21 Could you guide me on how to get in touch with your advisor? My funds are being eroded by inflation, and I'm seeking a more lucrative investment strategy to effectively utilize them.
"Camille Alicia Garcia" serves as my advisor, bringing extensive qualifications and experience in the financial market. Her deep understanding of portfolio diversity positions her as an industry expert. I suggest delving into her credentials for further insight. With her considerable experience, she offers valuable guidance to anyone seeking to navigate the complexities of the financial market.
Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
Thank you, my heart sank when I saw that cope figure, despite having 49 years in when I get the state pension.
If you have accumulated SERPS and if it and the old pension flat amount is above the new pension flat amount then you cannot be penalised by the new system. So, you get the difference protected. So, it is possible to get a State Pension payment above 12570. Especially as this government wants to extract as much as possible out of poor people by not increasing the lower tax threshold.
In 2012, I had enough credits under the old system for a full state pension. In the autumn statement that year, changes to the state pension were announced but weren't formally implemented until some years later. Because I knew I would fall short of the new 35 year requirement, I kept paying self employed NI voluntarily. In 2013, I only made a partial voluntary contribution and the state pension website says that it is assessing whether this payment will qualify as a full contribution. This has been the status for many years, so I phoned the helpline to see whether I can top up my contribution for that year. It transpires that I cannot. Because I already had the maximum 25 years of credits at that point in time, I cannot top up any contributions prior to the new 35 year rules coming into formal effect, which didn't happen until a subsequent date. I wonder how many other people have been caught by this quirk of the state pension changes?
When you say credits do you mean your being given NI contributions because you have not actually paid the money in eg unemployed, sickness and other situations pete refers to?
If so I can understand that there is a limit, there should be a way of ensuring there is a benefit from working and having the money deducted from your income V being credited as though you had worked and contributed when in fact you haven’t.
Simply put why should someone who had been classed as unemployed gain the same state pension as someone who has worked? That to me makes no sense whatsoever
@guyr7351 I have worked continuously since leaving university. In 2012, I was made redundant and decided to start my own business. At the time I was made redundant, I had enough NI contributions to qualify for a full state pension, despite having been contracted out of SERPs/SSP during part of my employment. Shortly after being made redundant, the chancellor's autumn statement announced that a new state pension would be introduced, but to qualify for this, 35 years of contributions would be needed instead of 25. Start-up costs meant that my business did not make much profit in the early years, so I could have opted out of paying Class 2 NI contributions but I chose to pay them voluntarily as I knew I would have to make another ten years NI contributions to qualify for the full amount of the new state pension. I have since discovered that one of the voluntary contributions I made was worthless because, at the time I made it, I already had the maximum 25 years contributions, and no further contributions would count. This is because, although the 35-year scheme had been announced, it had not come into effect yet. I have a partial year of NI contributions for 2013/14 on my account. I paid one six-month instalment but not the second due to a change in the way self-employed NI was being collected. Even if I retrospectively top it up, it wouldn't count towards my state pension because, at the time I contributed, I had already maxed out at 25 years' contributions and the 35 year rule, although announced, had not become effective yet. I expect that other people will have been affected by this quirk, possibly to a larger extent than me. I suppose I could try to pursue this with the ombudsman, but it's not worth the hassle for one year of Class 2 contributions and the ombudsman would likely rule that I was foolish for voluntarily making contributions when I didn't need to. They'd likely say it serves me right for trying to be proactive.
@maxwellboyne2770 It's a part of my forecast pension. Why wouldn't a self-employed person want to take full advantage of the state pension?
@@porrohmann thanks for the explanation, I did ask for clarity ref the wording. This system seems crazy but to be fair there is consistency in that I have been qualified for a full pension for a few years now, but of course have to still pay NI even though you could say in Theory I am getting no further benefit.
Some of our support systems are a right dogs dinner, look at the number of married women the state has admitted were underpaid but will not get full compensation.
I can see when the state pension gets stopped that your NI contributions or a good portion will be diverted into your employers pension scheme so you build up your pension fund substantially. For many this would be preferable as a fund over £300K would easily be achievable
@maxwellboyne2770 because he has paid 25 years of NI as an employee and then further payments as self employed. For sure he won’t be relying on it 100% but he should get what he is entitled to
Worth mentioning that the plan now is to digitise some of the processes that the Future Pensions Service offer such as the unique number you need in a bid to leave the phone lines open for those who are closer to claiming their state pension and are seeking specific personal advice.
Thank you Pete. @meaningfulMoney
You explain we need 35 years to qualify for state pension. I have 42 year’s contributions. Up until I retired early at 56 in 2020 to care for my Mum I had 42 full years contributions. However, my statement says I have 3 more years contributions to get the full pension.
I don’t understand and note a few others stating they had over 35 years. Is this something you could cover in a follow up, please? I’ve been trying the future pension centre for months without success!
Thank you.
Another great vid, keep them coming Pete, checked my state pension forecast and even though I was contacted out for the maximum period possible I will get the new maximum state pension by paying one more year, that I’m planning on working anyway so happy days. So not sure this applies to everyone in my situation but looks like you need to pay NI at 12% for 8 years since 2016 to make up any contracting out short fall? I’ve 42 years already and get my state pension in 2033.
Before 1978 you paid NI contributions for your flat rate pension. After this, an additional 2% was taken for SERPS. If you contracted out, only the SERPS bit was redirected. Not the flat rate bit. So, it is shocking that contracted out years penalise you in some way, when you have always been contributing the flat rate amount.
I have 37 Years… Max State Pension.. was contracted out with a Previous Employer however this is cancelled out by paying into SERPs back in the day…
Pete, I will be joining your channel soon, have some interesting questions that you can use for videos (or I will pay you for)
❤ your channel and content
Thanks for the video. You've managed to make a number of complicated issues a lot clearer.
Excellent 'Jim Bowen' comment very funny. I do like the superb clarity of your explanations regarding this subject. I had seen the cope figure after scrolling down on my pension info page and thought, bloody hell the bstads are going to deduct it! Meaning that it was all a waste of time, but, you've allayed my fears there. 😊
@meaningfullmoney , you should do a vid on deferring state pension warning of pittfalls ,I deferred mine for 5 years got an extra £62 a week , will need to live till im 90 to get back what lost due to deferring, not a good idea of mine
Depends on your tax rate. I have a friend who deferred his state pension for two years as he was in the 45% tax bracket, and he's in profit after about 3 years.
@@owensmith7530as Pete said state pension is paid assuming this is your first pot of income. Do is tax free. Whenever I have looked at the extra they would pay V deferring the gain takes about 16 years of increased pension V deferring taking for one year. Seems madness to me
@@guyr7351 But if you are earning 200K a year on top of state pension (rare I will admit), more of what you earn gets taxed at 45% because your state pension increases your overall income. In that case the reduced overall tax burden pays for deferring state pension.
I’ve been watching your videos intently as I am slowly approaching retirement.
I am homeless after a divorce now living in a campervan. I have a teacher’s pension which pays a fixed sum and a works pension, an occupational scheme, of about £100,000 which I could Flexi drawdown as I would like to take more each month until I am 75 to pay towards a mortgage on a flat.
I have spoken with my IFA about Flexi drawdown but he states that it’s near impossible as the regulator FCA are against this because it’s a guaranteed scheme.
Is there any way round this.
Good news for me, I've signed up to the government portal and while it tells me I've got 2 partial years (due to university) it doesn't tell me how much it would cost to top them up, it just says something like "We're checking to see if your contributions for this year count towards full state pension, we'll update this once we've figure it out", and has been saying that for about a month now.
I can't get on the website, I've tried contacting them numerous times since August 2022, but that too was a waste of time. They screwed us by moving it to 66, and I never got informed, so I expect to be screwed again. Their greed will be their downfall, no-one gets away with it, sooner or later it will come back to bite them.
Thanks for clearing up the Contracted Out query - I understand it now
Great advice and there is little option but to keep calling the Pension Helpline. I started in March with an email, have made numerous calls and curiously had an email reply this month, 3 months later, and providing an incorrect contact number! No choice but to keep going however, it should be worth it as the return on investment topping up your state pension is better than other savings returns (clearly personal circumstances vary hugely though).
My pension was contracted out, seemed a sound idea at the time (1976] however it’s limited to a max increase of 5% p.a. As it’s currently our only source of income the cost of living increase is uncomfortable so any opportunity to maximise potential income should be researched.
I check my national insurance record frequently there are some years missing when I click on the year it says we’re looking into this and will update shortly, they have been saying this for years.
That change in april 2016 cost me £2563 a year on my state pension when i retired last year after paying tax and ni for 51years stil paying income tax now
This is all fantastic information. I tried to access/log in to the site but it couldn't verify me and I got locked out. I used my maiden name, married name, hypphenated, nothing worked... I live in the US, (since '91) so I need to take a day off so I can call. lol
I wish you would have included other tax free benefits (for example PIP, Attendance Allowance, Rent A Room) - please do a video on this when one receives a state pension.
I was accepted to pay voluntary Class 2 contributions as I had a shortfall of 10 years since moving to Canada in 2008. I wired enough money to pay the shortfall but something went wrong and they did not get the reference number. I sent proof that I had wired the money. That was in October 2021 and I just got a letter this week, 2 years later, statingthat the payment was traced to my account and I was credited with 10 years.
great video! Very well explained. Have you got a video which explains what effects (if any) a private pension has on your state pension? thanks
Was told to file a CF83 for missed years living abroad with HMRC, that it could be next February before processing. Yet you say future pensions are supplying 18 digit numbers to make payments with now…what should I do?
Mine says 36 but not getting full pension? 1 partial year . Just found I can claim specified care credits for minding our grandson. Might be worth covering this for your followers
Thank you!
Back in 2021 I contacted them and I am nine years short for a full pension not sure if I should bother paying any shortage due to getting social security here in America when I reach retirement
It's just a pity that they will not give amnesty to all years not just to 2006. I had some half filled years prior to 2006 that I can no longer fill.
Another good video Pete, regarding state pension and taxation if the government do not raise personal thresholds then with high inflation soon the state pension will be over the personal tax allowance. This is of course assuming triple Lock stays in place, inflation remains high, and also if the government sticks with the plan not to raise the personal Allowance.
The state pension is a minefield with rules and the various pre 2016 rules but as we move forward will become more straightforward.
I have seen various reports recently that a huge number of people don’t know they can take 25% tax free from their personal or company schemes. Don’t realise they can retire early with reduced benefit, don’t know can take money from DC scheme at 55 raising soon to 57.
Basically as been said before a black hole of knowledge that really should form part of educations life skills. This should also cover mortgages, loans, credit cards etc and how debt can seem easy at first but can then Consume income.
Hopefully if Covid and lockdown / possible closures of business did anything it was to focus people on removing as much debt they had as possible. Get some savings in place although with energy costs and now mortgages rising so steeply many have zero cash spare.
Every time I have sought financial advice from, banks, building society's and pension advisers I have lost money, every time, when I invest ony own or gut feelings I have made money. Sort your finances out and forget about worrying about money or you will not enjoy your retirement and just prey every day to the god of Money.
I'm annoyed they extended the deadline last minute. I forked out £6000 to catch up, I would liked to have spread the cost a little. HOWEVER ... now that I PAID for a pension under certain promises ... has the government painted itself into a corner? Can I sue for damages if they decide to move the pension age or reduce the pay outs in the future? I feel like I and everyone else would win such a suit.
I did exactly the same paid 6 k in February as told after April 1st 2023 I could not top,up my shortfall ,I borrowed the money with £300. Interest so I would not have down that just paid a bit each month over the next 2 years , scamming dirty liars !
You sat that COPE is factored in to the SP calc but then you also say that it doesn't affect it?
Could you work longer and "work" to expunge the SERPS element?
Thanks for the great information, advice and motivation!
with tax thresholds frozen and inflation and triple lock we could see a time where the state pension pays some tax thats never happened before
Great information Thanks
I think it's worth paying for any gaps if you can, as although there is this new 2-year extension, the cost of a missing year could easily go up. Better paid now, IMHO.
I started taking my pension last year (I was 66). However, I have 46 years of full contributions. Why am I not getting the full state pension? I am just under £2000 short of that and even paying the 4 years that I am short will not get me the full pension. I was not contracted out, but did pay into a private pension from age 21 onwards.
I have issuses with company pensions .I can t get info .most companies I work for gave as part of package and I can t unravell .I have tried talking g to pension tracers but they need the details only they companies had
I believe that you can have £12,570 personal allowance plus £5k tax free savings allowances, total £17,570 / annual tax free income. Am I wrong?
You are correct but if your non-interest income is over £12,570 it will reduce your tax free savings starter rate. If you earn £14,750 you only get £3000 starter rate and so on. The good news is you also get the £1000 tax free savings allowance that everyone gets on top, so with the right combination you could earn £18,750 pa and pay no tax…….
What do you mean saving tax free allowance can you please explain
@@dino6507 Everyone in the UK gets an allowance to receive interest on savings without paying income tax on it. If you are a basic rate tax payer (20% income tax) that allowance is £1000, if you pay 40% income tax it is reduced to £500 and disappears completely for higher rate tax payers. When interest rates were low, few people were impacted but now many more are.
@@simonm9923 All the more reason to use up your ISA allowance, keep your hard earned from the greedy tax man.
One of my final salary pension schemes are talking about deducting a “state pension offset” from my company pension. Is this allowed? I only worked for this employer from 2008 for 5 years.
If anyone does not work does not sign on for any reason do they get a pension, no savings not a thing so could not make up contributions asking for a friend
Great video as always. I find it quite interesting (and a little unfair) that someone who for example is paid £200K and therefore has a very high NI contribution wouldn't get the full state pension if they only contributed for say 25 years. they would've paid so much in NI but still wouldn't be entitled to it
That's the socialist part of the system. That same person though would have a huge personal pension compared to someone who has been working 37yrs close to minimum wage. The couple of thousand a year is not going to be noticed by the first person, but could be life saving for the second ie heating in the winter.
The limit is 10 years not 25
@@liammacaodha4783 Not sure what you mean but 25 years was just an example. Currently you have to have 35 years of qualifying years to receive the full state pension amount. My point is there are people that will pay a large contribution to National Insurance over a period of less than 35 years (for example 25 years) put won't be entitled to the full state pension amount
@@Bulldogridesagain You're right and I agree there should be an element of socialism in the calculations for sure. I do think though that as well as a number of qualifying years there should also be a total NI contribution number if you contribute to less years. That number can be as high as the government wants to make it but at least people that contribute a significant amount get something out of the system
@@MrWhoAmI57 correct although you could argue the way our government systems work this would cause a nice lump of administration to be added into running everything.
It does seem crazy that there is a state pension that is maximised regardless of how much you have contributed.
I think we might see in the future if and when they plan to drop the state pension that they add what you would get deducted via NI as compulsory into your company scheme. So that pension becomes very much up-to the individual.
Hi Pete the gaps I have on my NI record was because I had children so how do I change this who do I contact as I cannot find the details
Hello! I need some help with sitting the FA2 (pensions administration exam) , CII have only helped so far and I’m struggling with the pass. Could you point me in the direction? Thank you :)
Thanks for the update Pete, unfortunately you didn’t address my question. My projection says I am £20 per week short of the full amount, so I must have less than 35 full years right? Except that the NI record shows I have 38 full years. I know this is because I was contracted out but my frustration is that it appears I can’t retrospectively top up the missing (hopefully cheap) years because there aren’t any!?! I have to pay future years to attain full state pension - is that correct?
Thanks for the video Pete, very informative. I have the opposite way to what you have. It says on the forcast i have 5 more years to get a full state pension. Yet when i go NI record, that states i have 33 years fully paid. Which one is telling the truth here?
Unfortunately both can be correct. I have 38 full years NI contributions but am still 4 years short of a full state pension. In my case it’s the result of being contracted out in the past. Unfortunately it appears this precludes the option to top up previous ‘not full’ years because there aren’t any! It’s confusing and infuriating
Thank you 😊😊😊😊😊
Peter, do you know if you can still make voluntary contributions if you are already receiving your state pension?
I would not have thought so. That's why it is important to get this sorted out well before you receive your state pension. A word of warning. When you do make additional contributions, they take forever to appear on your record. Again, a good reason to make the contributions well before you start receiving the pension. I paid about 4 grand in additional contributions and it took about 6 months to appear on my record. The end result was 20 quid a week more on my pension, so I have to live 4 years after my pension to make it worthwhile. I'm 2 years and counting.
@@paultrewin5871 thanks for that.
Hi everyone . Im 30 . I have some missing years . Do you think I should top up a couple years ? Thanks
I never see mention of the self employed being penalised because of paying reduced NI contributions,yet throughout their working life have paid an extortionate amount of Class 4 on the business profits. I queried this at the time I retired and was told it wouldn't count ss it was essentially an actual tax. If so,it accounts for approximately 30% on earnings for no benefiit. Robbery.
Perfectly explained mate
it is mandatory to contributed 35 full year national insurance contribution to get full state pension ? is it possible to skip contribution to national insurance and routed to pension contribution let's say for 10 year ? for the simplicity an individual contribute 25 years to state pension and routed the 10 years contribution to define contribution pension scheme instead of contribution to state pension. I am looking forward your kind opinion . Thanks and Regard.
I live in the channel Islands and get a UK pension but not a full one ,so can I apply for more by paying up years now or am I too late Thanks
Well DUR you're taxed after the 1st £12570 just like everyone working. No information there.
I am not working presently. My savings are too great to be entitled to Universal Credit. Can I still apply in order to get NI credits?
I believe so, yes, but the NI phone line will be able to clarify.
Mine says I have 49 years paid in
Enjoy your pension then my dude.
Have tried for months to get update on deferred pension. Apart from one nonsense reply my emails and phone calls are ignored.
Is there an ombudsman who can help?
Yep. The Pensions Ombudsman.
I have 43 years of full pension credit, yet I still don’t get the full state pension. I worked for BT until 2002 so I was contracted out of the state pension 2. How can I be sure that DWP have calculated my pension correctly? I have some years where my year is not full - how can I be sure that I will improve my pension if I top up these years ( after 2002) or will it make no difference because I was contracted out. I cannot get an answer to these questions from anyone.
I am in a similar situation. You need to contact the future pension centre (by phone which is painful but I did get through eventually) they can go through your personal situation and confirm which years and what benefit for what cost. I don’t think there’s another way…..
brilliant de-mystification video- thanks so much
Glad you enjoyed it!
I haven't worked since 2019 i receive £72 a week mineworkers pension i don't work but now receive industrial injuries benefit 20% for life £42 weekly and £83 a week reduced earning allowance this shows on my industrial injuries benefit letter as 60% industrial injuries benefit what i am asking would my national insurance contributions be paid by the government thank you for any advice off anyone who may know
My projection is showing 36 years of contributions and a full new state pension, fine so far. However I understood that being in higher education would qualify for NI contributions, yet my university years from 1984 to 1987 show as no NI contributions. Even more bizarre my 6th Form school years from 1982 to 1984 show as full NI years when they shouldn't. But given my projection shows a full new state pension and I plan to work for a number of years, it isn't worth chasing these discrepancies.
I was also contracted out for over a decade (I have the money for that in a pension fund) but it doesn't appear to have made any difference, and I have no COPE figure. Looks to me like they lost track of the fact I was ever contracted out. While these mistakes are almost entirely in my favour it does not inspire confidence.
@@owensmith7530I don’t think they are discrepancies, mine also shows full NI contributions for 6th form but none for university. My wife’s is the same so for whatever reason that’s how it is.
@@simonm9923 Thanks, now at least I know the 6th Form and University thing isn't just me.
That explains it. I've got full years during 6th form in the 80s. Which I thought was a bit odd as I only worked part time for a short while. Nothing during uni.
I was also contracted out. for a couple of years in the early 90s.
So far I have 33 years full contributions. I plan on working for another 9 years so will have more than the 2 more years needed for full pension.
Hi Pete, I submitted a request recently with the aim of filling in missing years and beating the impending deadline. However, as you mentioned, the deadline has now been moved back to 2025. While reviewing the online notice, I noticed the term "eligible taxpayers" mentioned. This got me thinking about my eligibility, considering that I have been residing in Australia since 1985. Consequently, I have missed several years of NI contributions. Additionally, as a non-paying UK taxpayer, I'm uncertain whether I would qualify for the deadline extension. I would greatly appreciate it if you could provide any information or guidance on this matter. Thank you in advance for your assistance.
What amazed me that there was no accountability for input whilst service family to be told down stamp due to their errors x 3-18yrs.. Some service spouse input happens abroad as working UK diplomatic bases.. Aka services input
Great video, thank you. How do I contact you?
meaningfulmoney.tv/work-with-pete
I had a friend on Pension Credit and she was very happy with it until she received a £40,000 legacy from a relative. Her PC was cut and she had to live off the legacy rather than having a nest egg.
Can you claim any state pension off your ex husband if you were previously married for so many years would be interesting to find out 😊
Hang about here... On the SP taxation.
Am I right in thinking you will pay tax on drawing any of your private pension regardless ?
So basically government know start getting back most of the tax relief they initially gave you, so it was only a loan. ha ha
We know the state pensions swallows up your personal allowance. So that's your allowance gone. So drawing your private pension is going to be at 20% tax up to your 50K allowance.
So surely you might as well draw the maximum in the 20% band, thats £37k per tax year.
Then whack 20k of it in an ISA for a start. 7k tax and 10k spare.
It’s not quite as simple as that but your thinking is good.
For example you’ve had tax-free growth in the tax relief you had added to your pension, so they’re not getting it all back!
As to whether you should draw out up to your HR tax band, much depends on any other sources of income.
If you have a company you can get extra £2k tax free dividends a year. Total of £19,570 tax free income a year.
How does that work? Don't you mean 12570 tax free pa? I think the div tax free allowance is going down at some point. To 500. Not sure when.
@@shellyperera2010He means because of the ‘starter rate for savings’ where you get a £5000 tax free allowance for savings interest if you earn less than £12,570. It reduces progressively to zero if you earn £17,750. In addition there is the £1000 tax free savings allowance.
Pay the missing years as soon as possible you say...... Me: Goes to look for best 18 month savings rate! 😂
Can't believe you tell people that they have contributed to their own state pension, that's just not true. You know you only pay towards others pension, when you retire, others pay for yours.
While that's technically true, you are building u p credit towards your pension by making contributions. I know how it works!
Here is a good idea, stop paying anything to people who have not contributed, they you could afford to pay Pensioners a decent pension
If rich pensioners are so concerned about the UK not been able to afford the trip lock then why not the so call rich pensioners return or refuse their pensions and give it to the needy UK state pension is pathetic for the 5 th 6 th 7th Haha largest economy in the world pay urm right😂
If u want to see how it works I will tell u /31 leopold rd Felixstowe ip11 7 np worked in pensions all her life and ripped everybody off /the elderly working class get back what she stole its with her family all the cash stashed with them
The crux of the matter is they don’t want anyone who’s worked all their lives to claim what there entitled to but continue working and contributing to shore. Up a shitty system
Thank you Pete. @meaningfulMoney
You explain we need 35 years to qualify for state pension. I have 42 year’s contributions. Up until I retired early at 56 in 2020 to care for my Mum I had 42 full years contributions. However, my statement says I have 3 more years contributions to get the full pension.
I don’t understand and note a few others stating they had over 35 years. Is this something you could cover in a follow up, please? I’ve been trying the future pension centre for months without success!
Thank you.