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NIC Shortfall

My wife is four years short for a full State Pension.About £10 a week difference.

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Looking at her record in detail.In 2009/10 a payment of £110;would include this year as an extra qualifying year.According to the record she has until 2023 to make this payment;even though she reaches State Pension age next year 2021.Unlike other years a payment of £110,looks good value;as she would get that back in the first year of pension receipt.I am not so sure other years requiring payments of circa £450 or the voluntary nic 3;are worth the punt.Any views on this,and how do you ensure the payment made is logged to the correct year ?Is there a specific form ?Tried to speak to DWP and you get a load of rubbish by way of a reply.I thought I understood NIC and the State Pension,having covered it for years;but clearly I don't.

While I am on the subject;am I the only one who thinks COPE was a rip off ?I would get another £100 a week State Pension without COPE;and that would be triple locked (or maybe double locked after the Autumn Statement).I am not sure looking at my Occupational Pensions;whether they represent good value compared with an extra £100 a week State Pension;I should imagine the calculations by way of comparison are quite tortuous.

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By paul.benny
09th Jul 2020 11:42

To pay voluntary contributions, follow here:
https://www.gov.uk/voluntary-national-insurance-contributions/deadlines.
I have paid voluntary contributions and whilst it took time to be allocated, it did get there in the end.

"New state pension" is £175/week and you need 35 years' NI to qualify - fewer years and it's prorated down - so one year is worth about £5/week. Class 3 contributions approx are £15/week so there's a 3-year payback. Clearly for most people that's likely to be worthwhile.

I wouldn't want to rely on having 6 years to pay when a person is less than 6 years from state pension age.

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Red Leader
By Red Leader
09th Jul 2020 11:49

Regarding COPE, does this affect the *basic* State Pension that's paid (as opposed to the additional SP)?

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By Michael Davies
10th Jul 2020 10:00

Yeah I get the voluntary class 2 & 3 payments.Which are set sums.However the Mrs 09/10 potential contribution specifically mentions £110 so presumably this is a class 1 contribution.I know it’s not large potatoes but I just think sending a cheque for £110 with a letter telling HMRC which year to allocate it,won’t work.
The COPE element must apply to SP ?My COPE element as specified is £100 a week.Although I did read somewhere that contracted out pensioners won’t get what they think they are entitled to.So the £100 COPE could come off the £175 a week,leaving them with £75 a week,plus what could be a crap private pension.

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Replying to Michael Davies:
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By paul.benny
10th Jul 2020 10:42

The 09/10 number is perhaps class 3 for the missing weeks.

Wherever you found the amount should also tell how to pay

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Replying to paul.benny:
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By Michael Davies
13th Jul 2020 09:52

Thanks.

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