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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?

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Replying to lionofludesch:
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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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