Urgent Warning | 8 weeks left to boost your State Pension (Everyone aged 45-70)
HTML-код
- Опубликовано: 20 май 2023
- Until 31st July 2023, there is a window of opportunity where you can boost your state pension by topping up your NI contributions all the way back to 2006. If you miss this, you may never be able to get a full state pension.
Although this may not affect you personally, it’s likely that you will know of people it will affect, so please ask them to check their state pension forecast.
Check your State Pension Forecast : www.gov.uk/check-state-pension
Check your National Increase Record : www.gov.uk/check-national-ins...
Money Saving Experts guide : www.moneysavingexpert.com/sav...
Future Pension Centre Number : 0800 731 0175
Looking for help with Financial Planning?
I am a Chartered Wealth Manager and Partner in a financial planning practice based in the UK. If you would like to find out more about working with us, please follow this link: go.novawm.com/getintouch
DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice. Any opinions or assessments expressed are James’ own opinions or assessments, which are not affiliated with any third party. Any representations stated as facts or views based on such facts are relevant to circumstances applicable at the time of publication. This information should never be relied solely upon to make decisions, and James accepts no liability for any investment actions undertaken by viewers. Please seek regulated financial advice or an advisor if you require assistance.
James Shack™ property of James Shackell
Copyright © James Shackell 2023. All rights reserved.
The author asserts their moral right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this channel and any video published on it.
DEADLINE EXTENDED TO April 2025 - HMRC have just announced that the deadline has been extended. www.gov.uk/government/news/deadline-for-voluntary-national-insurance-contributions-extended-to-april-2025#:~:text=Taxpayers%20now%20have%20until%205,announced%20today%20(12%20June).
Just saw that when I did my check, didn't know what to expect, as a had two long periods of employment with a drinks company, and in between I was a temp lorry driver. I was pleasantly surprised to see I have 41 full years,I'm set to retire in 2032. So glad I saw your post, as I have always put of checking for one reason or another, thanks again, take care.
Fantastic ! Thanks for the very helpful video!
@@HoofHearted7 They clearly state I have 42 FULL years, but they still demand £4K to get me up to a full pension.
No wonder, they were not cotactable on the two phone numbers given. Of course there is no email address and no one has replied to two sign for letters.
What if we were working overseas up until 2012?
The trouble is you can't actually get in contact with HMRC to add a payment. You call their number, select the option then get cut off.
Yep I’ve had exactly the same problem.
I have had that problem for the past 2 months
I eventually wrote to them to plug one year with a cheque.
It's disgusting that the very people who have been working to support the country are left without support, while millions who have just arrived, are kept in hotels, phones, pocket money etc.
Democracy is no longer fit for purpose.
Trying to get through to them in 2018 when they repeatedly sent me threatening letters warning about fines for not filing self assessment - in spite of the fact I'd been an *employee* for 4yrs by that point
Took me *days* to get through to someone
I had no problem 2 months ago.
There is one number to discuss which year(s) are best to top up, and there’s another number to get the code to make the payment either online or by bank transfer.
I had a pension forecast before I turned 50 and because of child care and low paid work was told I would only get 40% of the state pension. When I reached 60 I contacted the NI people and offered to work past retirement age to build up funds. I was not allowed to make any further contributions but they told me every year I deferred my state pension there would be a 10% increase on my state pension. I worked 4 years after expected retirement age and bingo, my pension was 100% plus. Boy was I glad. Best of luck all those who are looking into this. It is worth it.
I feel like the change in ability to buy/top-up previous years is a definite sign of the UK not being able to cope with the state pension burden in coming decades. They're trying to reduce the number of people who will be entitled to a full state pension.
It's what people voted for tho. Tyranny and oppression. Only now those same people are shocked they are now being targeted. They obviously never heard of the saying 'they came for my neighbour and I said nothing. Now they come for me and noone to defend me'.
They don’t have to try. Millions don’t even bother out of laziness or just got enough money.
@@markfrancis5164 Or dont have the money to top it up...
@@mick6721 Actually a hell of a lot is free if you tick the right boxes.
You can usually go back 6 years anyway. This concession was only brought in for us oldies who were seeing our pension age go up out of the blue (especially for women) and it was to give us extra chance to make good any lost time.
Only the special concession is being removed. It’s just back to the usual rules - you can still pay up to 6 years previous contributions - even after this deadline.
I've worked for 42 years and just managed to scrape through with the full pension allowance when I reach 67. This information is great because I think most people will assume that they are entitled to the full UK pension as long as they live and work in the UK.
For parents who have stopped working to raise children, you can still have each year qualify as a ‘Full Year’ in your NI record (even when not working) by claiming child benefit. Even if your household income is over the threshold and you’re not entitled to child benefit you still follow the process of claiming it and simply select the option to ‘not receive child benefit payments because household income is over the threshold’. In doing so, you are automatically enrolled each year onto NI credits which make it a full qualifying year. This lasts up until the child reaches the age of 12…so 12 years of full NI record for Mums or Dads who drop out of work to raise a child. That 12 years is re-set for each child as well.
Thank you Peter, this is super helpful.
It was up to age 16 before 2010 x
I've just checked on the Government site. The original poster is correct stating your NI is paid in full up until your youngest is 12yrs old.
Yes it is 12 now but if you had children years ago it was up to 16 x
How does this work if you stopped work years ago to raise kids but didn't claim child benefit - can one have the night contributions recognised retrospectively?
James, I cannot thank you enough for explaining in simple terms something that I am sure confounds many people. Thank you so very much.
He knows his stuff. Anyone with a kitchen like that is doing very well for themselves.
I sent my form in in January, called them in March as I hadn't heard anything and they said that due to their backlog they will review my submission in September!
thanks, I couldn't get to speak to the Inland Revenue before they extended the deadline.
This was useful information, thank you.
The State Pension is still as depressing to look at as I thought though.
If you don't have your home paid for, or any other income source by the time of retirement, you're absolutely screwed, it will barely cover your weekly shop.
I reach state retirement this Jan 2023. I can confirm that you can not live on £10.6k It's a good base to start from but you will need a private pension & savings as well.
That was really useful. I regularly raise this with my female clients bit I had no idea about this deadline. I've emailed the video to myself to share. Thank you. 👍
Stumbled upon this video, and it was really great to figure out what my situation is as an ex-pat living in the UK, so thanks James! 👍
Martin Lewis was the first thing that came to mind when reading that video title!
Just come accross this channel by this vid. I didn't know any of this stuff and presumed all state pensions were the same. Liked and subscribed 👍 Thank you
Thank you. I wouldn't check the pension state pension if wouldn't have seen this video.
The very best explanation of the rationale and decision-making process that I've seen. Martin Lewis eat your heart out!
Very informative! I couldn’t visualise the maneuver before, now I can. Thank you!
Many thanks just coming up to pension in December and am 3 yrs short so will be doing this!
Very good. It's Future Pension Centre. Thanks.
Thanks for this video James, I was able to top-up 6 years of NI contributions, and so gain 6 more qualifying years towards my New State Pension.
thanks a lot for this concise video - i was aware of this but had done nothing until now
I started to contribute on 2005 , so I'm good. You video made me to check my records and prediction at last. Thank you for this video.
Great stuff James. I'm now a fan. Subscribed.
Serendipity I discovered this today. I'm 62 and def have some missing years- must check this out asap.
Brilliant video! Bit scary this video only came up after discussing this with my wife last night. Google certainly listens! Nice to know I've got 42 full years after checking. Thank you for such a comprehensive video.
Many thanks James, just checked and I'll have the full amount by the end of this FY - now to check my wife's as we're starting to think about our retirement plans...
You're a bloody good chap James 😎
I did this last year and paid for 16 years and now have 30 years.
Thank you James, I shall inform my parents as this was a discussion we were having the other day. ☝️
Very useful video - thank you! I checked and have 37 full years so i’m good to go!
Thank you. A very informative video and also easy to understand, I will get onto it this weekend.
This is golden - thank you so much! I have six gaps in my years which I want to pay but Gov site says for each one "We are checking this year ... you do not need to do anything" - once I'd finally got through Government Gateway obstacles. Oh helpful!! BTW, the main page says "deadline for gaps between 2006 and 2018 has been extended to 5 April 2025"? Keep up the great service. Jane 🙏🙄
Fantastic video well worth the 1.99 well explained and extremely informative thank you
Will call the helpline. Online doesn't work well, if you don't have a passport or driving licence!
Very Informative video. I went and checked my contributions and found 1 year short of contributions back in 2002-2003, but it states that it is too late to pay for this year. I do have 43 years of full contributions, so should be OK. Thanks for the information, will go and check the wife's now.
Thank you James,as someone who worked from 12 to 35 i was worried i hadnt paid enough N.I. Unfortunately due to health issues im now unable to work and flitting through various jobs i definitely havent got a pension pot to use in the latter years. It was so easy to do from what you advised and gave me peace of mind that i will have a full pension when the time comes. Im late with the thankyou as i lost you when i panicked and went to go and check this out. I am now subscribed and working my way through your vlogs as what may not apply to me will apply to my children,family and husband. Again thank you.
Definitely call the helpline! In order to bring my contributions up to 35 years, I already had it worked out from the information they had sent me. But it would not have brought me up to the maximum if I had followed my own working out. I had to pay for more than 35 years, because it makes a difference whether your shortfall years come before or after 2016. The advisor also saved me a lot of money by classifying several years as class two contributions rather than class four. I would not have known about that! Thankfully, it’s all sorted now!
which is the helpline number you refer to ? cheers
Yes, already bought 10 years I am abroad and haven't made any contributions since 1995. Will try to buy another 6 years at some point next year and I will have almost a full state pension!
This is an immensely helpful & very well explained video! 🏆🥇
THANK YOU VERY MUCH, James. 😎🤝😊 I was not aware of some of those options at all & now realise that I need to take some URGENT action in order to maximise my State Pension. Time to get that Calculator out!
James I can't thank you enough for posting this video! This will help my mum so much :)
You’re welcome!
Thank you very much for a fantastic video .
I had planned to check my Pension.
I have done it now .
All good .
Thanks again
You’re welcome!
Thanks James. I paid for 5 years of my wife's nation insurance and was roughly the same as your clients in costing. She does have 3 more years available to pay before the deadline and another that can be paid up to 2028. I started this back in september last year so was fairly easy to get through to someone but I can understand the rammed lines now that Martin Lewis talked about it on his show. I may try and phone again tomorrow to make sure she can get away with just earning the rest of the years needed.
Thanks for the info and for those who read these comments, it is well worth the effort of getting through and paying for these extra years.
@Calgacus If they were claiming job seekers, they will get National Insurance credits: So they will get state pension.
Thank you James. Looks like I am all ok as long as I contribute another 7 years out of the next 11. I wondered how I could check.
Right I've spent several days trying to sort this out and it's a right nightmare. I have been registered selfemployed since 2013 but have some missed payments so that should be entirely manageable class 2. Instead they are saying there is a mixture of class 2 and 3 which is much more expensive. So, I conducted a rather tedious experiement as it takes at least half an hour to get through. I made three separte calls and guess what - I got three separate figures. Also, if you are missing several years there is no way of putting down in the payment process what years you want to pay for. It is abs fkn shambolic and no one knows if the figures given are real or imagined. Ive passed this on to my MP but thanks for raising it!
It's amazing that the BBC has not been asked to announce this stuff on radio and TV to warn people. But then again they don't even have the systems or staff to be able to handle the influx of people asking questions as it is...
Great vid, just checked my NI history and I can buy 5 years of contributions for just over £500, thanks! 😀
Thanks much appreciated; great information. Is there a different procedure when one has been off work due to health issues?
Just managed to get through 27 May after 5 months trying. Got figures and reference nos to make payment. Would have been easier to go online and buy those years that way. £2900 to bring me up up to fully paid up. Fortunately able to do it so this is good advice especially with triple lock increases. Although I think I’m right in saying that gov can change this if they want to.
I was a financial adviser for 25 years, and I want to commend you for the logical and understandable way you laid out this video. Very nice work, thanks.
Thank you very much, means a lot coming from a fellow professional!
Thanks for this It helped and has put my mind at rest I have one more year of NI contributions to make to reach full pension entitlement current 51years of age sitting on 33 years of full payments no additional contributions required unless I stop working now, the way things are going I will be working until I drop or the government increase the age passed 67 which is likely. I have subscribed.
Took hours and hours on two different phone lines. All sorted. I was six years short and retiring soon, all topped up and ready to go. The lady I spoke to said it can take up to 6 months for the top up to get on to your statement, so do it early, otherwise you will have a fight to get the right pension at the point you retire (you will eventually get it). They have a HUGE backlog, and it is getting more than a day longer as each day passes. This video was a jolt to get me to check all my past pension plans, and I found two I should have been receiving for 4-5 years. Already had one big payment I wasn't expecting, another one coming soon.
Thanks, James. This is extremely useful.
Many thanks for this info I was totally unaware of this issue. 🙏🙏
I've just turned 40 this month and been in the UK for last 5 years worked full time never used any any allowance always been on work is this something I shoul do? Keep up the great work
Great video James
Just want to be sure i'm ok.
I checked my NI contributions record and I have
54 Year old
36 years of full contributions.
3 years where I did not contribute when I was a student from 1990-1993
There is nothing I can do here I guess and I have enough years.
Does you forecast also say you’ll get the full pension too?
Great video. Nice, clear explanations.
Nice one James, great video👍
Great video, I’ve just subscribed.
Very useful and comprehensive video James - thank you. At age 45, I’ve decided to plug some of my five years of gaps between 2005 and 2010 as it will give me more early retirement freedom a bit later on. Worth highlighting that if people have gaps due to working abroad (like me) you should check if you are due state pension from that country too.
Yes good advice, I imagine many will have a minimum threshold as we do in the Uk (10 years)
Graham best advice I ever got was pay the amount required while you are working and potentially have children and a mortgage - ie high outgoings. Once your children are less of a financial cost then the parent is older and possibly earning more so pump in as much of your disposable income possible to your pension savings pot. This is what I did and it’s has paid off for me. However everyone has different lifestyles so James’ video is really good advice - alway get as much advice as possible and try to find as much information you can.
Graham also U.K. state pension ms are paid to U.K. people living abroad in retirement but the it does not increase each year like it does for U.K. residents.
So helpful, thank you very much.
Thanks, made me go and have another check 👍🏻
I moved to the UK halfway through my working career. I just checked and have contributed 7 years with 28 years left until state pension age. That's exactly 35 so will get the full pension provided I don't miss any years. My partner hasn't been working for a number of years as a stay at home parent so will need to carefully consider her situation.
The work and pensions office say that they are 30 weeks behind so 31 July is almost irrelevent! They say that they will honour the previous years in my case. I've been trying to sort out voluntary contribuitons for the last couple of years. Last year they were 4/5 months behind. I would suggest getting the request to pay in writing ASAP!
I have 39 full years of contributions but my Government Gateway pension forecast is only £160 per week. and even if I bought back all the incomplete years I would only receive £201 per week. I have tried to get some sense out of the pensions help line but its like knitting fog.
Finally got an answer today from The Pension Service- I have 43 years full contributions- But according to Pension Forecast team I still have over 7 years to pay....i am due to claim state pension 31.03.24. New state pension from 6 April 2016. I was opted out of SERPS by my employer so i have been receiving COPE payments- as shown on my forecast from my private works pension. So for me- i do not feel it of benefit to pay nearly £6000 for a difference of £30 a week. I was however informed NO ONE WAS ADVISED OF THE CONSEQUENCES FOR FULL STATE PENSION
I’m 49 and according to my pension forecast I only have two years left to pay before being eligible for a full state pension, even though I was contracted out for about 20 years. I did start working at 16 though.
Brilliant video m8, thanks!
Such an informative video, thanks for sharing!
I covered all my gaps last year.
Thank you! I need six full years more NI contributions. This will take me up to spot on state retirement age. I will/should make it without having to make any back payments. As it is now I would get approx £175pw. By retirement age and paying the rest of the necessary NI, I will get approx £205pw. All is good I hope. Thank you for this.
THANKS
Thank you
Useful information, good to know.
Just an FYI: I contacted the Future Pensions service and it took half a dozen calls to get into the queue - kept getting automatically disconnected after going through the menu options which was quite annoying. Once in the queue I was on hold for about an hour before getting through to someone. To be fair they were very thorough, offered me good advice regarding my personal situation and provided assurance that any years I paid would actually increase my State pension. Just be prepared for a long wait!
I was waiting 20 mins but other than that no hassle and they were so helpful
I am still trying to get through, I can see everything on the system so do not need to ask anything, all I need is to pay up for the missing years, is calling them the ONLY way to do so？why would they make people call then don't bother to answer....
Try first thing in the morning - that's how I managed to get through.
@@AnnBurgess00 Thank you and just to update, this future pensions line is for queries ONLY, you don't pay to them, they give you an HMRC number, which is another struggle to get through, when you hear the music you know you're in the 50mins wait+ queue LOL
@@danni11uk Because the UK government wastes so much money on making provision for foreigners (illegal immigrants), that they don't have enough money to help their own citizens.
Similarly, they have wasted billions on supporting the fast track to WWIII in order to hang on to the coat tails of America in helping to make sure the situation in Ukraine continues to ruin that nation as well as the finances of the UK (and many other countries).
The Russians only invaded Ukraine to stop them from bombing their own citizens. The whole thing would have been over in weeks if it were not for the American led push to provide weapons to extend the war.
So, instead of a short invasion, followed by a withdrawal, much of the Western world has suffered financially and the impact on Ukraine has been 10-50 times more than it would have been.
I went the online chat route, you can type Advisor into the chat box until you get an actual human rather than their automated system. I then went through which years I was missing and filled in as many blanks as I could afford, although I was repeatedly told I should check with a pension forecast whether or not it would improve my pension. I'm going on the basis that it can't hurt to plug gaps where possible.
Hi James perhaps it would be a good idea to show in a video how to find and what to do when trying to find someone’s missing payments thanks
Paid 6 years off whoop whoop 🎉 and my forecast significantly improved standing at a total of 20 full years! I’m 36 however I think it’s worth it especially as I plan to retire at 52. James I’ll call you to before then 😂
Very informative thank you
Many people have submitted the paperwork but have not heard anything back.
Not even a receipt to say thanks for the application.
Thanks for the info!
I have 37 + 9 years to make contributions - I should get a medal.
Thanks, James, I just checked mine and I had one year that wasn't full. I'm 46 with 29 years of full contributions. I will sadly still be working beyond 52 ☹. So in my case, there is no point in topping up the one that's short. Great Video. Suppose we should now check the wife's 🤔
You’re welcome!
If you have been working abroad you may be able to pay class 2 NI contributions which are just over 3 pounds per week so 160 pounds to buy a year and not 824.20 - makes it even a better deal
Excellent video
I thought the £824 per month *was* the maximum State Pension. I had no idea it was higher than that. I became in receipt of my State Pension as of December last year. I'll have to look in to this. Thank you for this very informative video.
Mine is estimated to be about 886.38
Hi James. Very useful video as always. One point, as state pension is deemed taxable income, if future pensioner/s is/are likely to be taxed an pension received, then this may have a significant negative impact on the buying back a small number of years. This is the case for my spouse and I. In our situation the £824 outlay would require around 15 years to become cash positive so of little value. Especially if you ISA’d the £824 and allowed it to compound grow.
Good point.
This is true, my neighbour was in this position then found out she could claim something called pension credit and some other benefit so now gets more than her husband.
Thanks for this.
If you are 40 years old, maybe "will the state pension still exist" and therefore "will I get this money back?" is a more fundamental question you might want to ask ...
Awesome video
Hi James. Very clear video. Spoke to Future Pensions and HMRC and sent my application off in March, but nothing. Who do I contact now? Thanks.
Thank you for your video your such a cool guy !!
yes but how do you pay? I thought you can only pay it if you meet the criteria?
this is great and I have a year I need to fill, but how do I actually make the payment? There is no 'pay here' or equivalent? How do you actually do it?
Hi James, your content is fantastic and really educating when it comes to personal finance. I am a new subscriber. Would you have any advice on what to invest £1000 on in a stocks and shares ISA?
Great video mate 👍
Also take into account buying extra years and the cost and if you have another pension is what you pay to top up worth it because you would be paying more tax if above the tax threshold.
Great video as always James. For anyone who lived overseas during this period you are able to pay Class 2 which is only about £165 per year. Having been overseas since 2004 this was a no brainier for me to contribute.
Do you still get same amount of pension when paying class 2?
@@joesegura9993 Yes
That sounds good to me, as a teacher who has been out of the UK 2007-2017 in Spain, and since 2017 in China. Just hope there isn't a catch :)
This is very useful information. I paid thousands of Euros into the Spanish autónomo system but am concerned about it no longer being carried over here due to the Thing, or the Spanish paying anything out over there because I'm sure I didn't hit their threshold either. A mere £330 would get me up to my 35 years.
@@andypeacock3917 I'm in that situation at the moment. You have to provide details of your overseas employment for the years you are claiming Class 2 for, but it's not too onerous.
I'm 59 years old. I haven't worked since just before lockdown when I closed down my business. I have checked I have 38 years of contributions . There are years where some contributions are missing but as I have more than the 35 years needed I wont be worrying about getting another job to make sure I have enough NI.
James, this video woke me up to the fact that I had three discounted tax years and only one full tax year contribution to pay to be eligible for a full UK contributory state pension. Thank you so much. I paid an additional 5 years just for the giggles. A no brainer investment for my situation. I might just want to roll on the floor laughing tomorrow and pay for the remaining three full tax years. 😂😂😂 We'll see. Brings me to 14 years full contributions and guaranteed return when I retired. No brainer. Thank you so much buddy. FYI long life runs in my family so 20 years minimum to feel the benefit of your video. Thanks again.
If you have worked out of the country it’s a lower amount to top up a year- I just paid around £150py to close a 5 year gap- no brainer for me.