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UK Pension -voluntary contributions

After waiting almost 7 months, I finally had a reply to my letter to the Pension Service in Newcastle!  I’ve been informed that if I pay voluntary contributions of £626.60 for each of the next tax years 2011,  2012, 2013 (i.e. £626.60x 3) I’m entitled to a pro-rata State Pension of 29% (£28.32 a week). This will be increased by 10,4% for each year I delay retirement, past 60. Or I can take this as a lump sum - does anyone know how the lump sum is calculated ?

 

Considering that the French CNAV has translated my years worked in UK as 35 “trimesters” (just 5 “trimesters” short of the 40 (10 years) required for the UK state pension, it seems a little unfair that I have to pay voluntary contributions for 3 whole years.  Yes I know that the French calculate pensions in “trimesters” and the UK count full years only. I’ve thought of contacting the Pensions office to ask them to reconsider & try to negotiate a deal. Would this work ? Has anyone had a similar experience ?

 

Thanks!

 


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Re: UK Pension -voluntary contributions


How much would you get if you didn't make the voluntary contributions ?

Quimper.co

99
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Re: UK Pension -voluntary contributions

Nil - nada - zilch  - rein du tout !!!!!!

 I've worked out that it may be best for me to pay the extra contributions which I'll recoup after 44 weeks. But still not totally clear yet....


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Re: UK Pension -voluntary contributions

It sounds a good deal to me, as it will soon be recovered!  Smile [:)]


Life is not about waiting for the storm to pass, it's about learning to dance in the rain.


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Re: UK Pension -voluntary contributions

 parischic wrote:

After waiting almost 7 months, I finally had a reply to my letter to the Pension Service in Newcastle!  I’ve been informed that if I pay voluntary contributions of £626.60 for each of the next tax years 2011,  2012, 2013 (i.e. £626.60x 3) I’m entitled to a pro-rata State Pension of 29% (£28.32 a week). This will be increased by 10,4% for each year I delay retirement, past 60. Or I can take this as a lump sum - does anyone know how the lump sum is calculated ?

 

Considering that the French CNAV has translated my years worked in UK as 35 “trimesters” (just 5 “trimesters” short of the 40 (10 years) required for the UK state pension, it seems a little unfair that I have to pay voluntary contributions for 3 whole years.  Yes I know that the French calculate pensions in “trimesters” and the UK count full years only. I’ve thought of contacting the Pensions office to ask them to reconsider & try to negotiate a deal. Would this work ? Has anyone had a similar experience ?

 

Thanks!

 



I had the opposite experience of calculation.
The UK uses weeks, and France accepts only full trimestres, so my French pension fell short of what I would have received if calculated in the UK way.



The fact that an opinion has been widely held is no evidence whatever that it is not utterly absurd; indeed in view of the silliness of the majority of mankind, a widespread belief is more likely to be foolish than sensible.
- Bertrand Russell
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Re: UK Pension -voluntary contributions

The tax free element is normally 25%.  It's not always clear if additional contributions make financial sense but you can do this calculation on line.........
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Re: UK Pension -voluntary contributions

Are we talking at cross purposes.

Since when was there a tax free lump sum element to the UK state pension ?



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Re: UK Pension -voluntary contributions

If people defer their state pensions for a specific period they can get a lump sum, but I'm sure that it is taxable.
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