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Shortfall of NI contribs but 39 completed years

Shortfall in NI contributions inspite of 39 fullyears

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Following up my post 9th July I have further information which I am puzzled by.

Client has 39 full years of contributions 9 incomplete years (2 recently and 7 from the late 1980's). 2 more years to go until retirement. They were at some point in a cntracted out pension.

I thought you only needed 35 years of contributions to get the full state pension.

Their forcast is saying the current forecast is £146 per week; if next 2 years are made it will b £156 per week. Without the shortfalls  the pension would be £171 per week.

To make good recent shortfalls voluntary contributions of approx 750 are needed for 17/18 & 18/19.

Couple of questions.

How could there be shortfalls if 35 full years have been contributed

Are we, as accountants, allowed to advise re voluntary contributions or is it IFA territory?

Replies (52)

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Replying to lionofludesch:
By slowthinker
30th Jul 2020 12:46

Yes, making the extra contributions is very effective, BUT we nearly made one for a missing year before 2016 which would not have increased the pension.

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By Karin Read
07th Aug 2020 15:24

I have written on several occasions to try to get answers on this very issue for my husband. There is a complete lack of transparency in the responses from those dealing with National Insurance. It is a disgrace and I am sure it will become a much higher profile issue as the years go on, especially as there are many more self employed people now who do not earn sufficient to pay into personal pensions.

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