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Re: UK Pension -voluntary contributions

One of the things that is not made clear in the letter the Pension's People send is that the amount calculated to top up your contributions is based on the NI contributions for this current year and if you defer paying ( as we did ) of the period they say you are entitled to deliberate it over, the top up contributions can rise quite steeply.

In our case because NI contributions had risen sharply over the years it took us to get around to topping up the contributions and it became uneconomic
My wife would have been in her late 80's before we clawed it back. And a buck in the hand is worth..........................

Its also not mentioned in the letter that the rules are changing on entitlement

Now the entitlement rules have reduced down to 30 qualifying years topping up should not be required by most people

JB

Fairer Taxation not Confiscation
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Re: UK Pension -voluntary contributions

I always used to pay what I think were called Class 4 contributions to make up the years that were lost as I worked abroad. They used to give seven years to pay it I think. This was a few years ago now, but I calculated that the pension was worth the interest off £100,000 and therefore was a very good deal, especially when they sent back a cheque saying that the number of total contributory years had dropped to 30 and that therefore I had enough to get the full State pension. Which I shall have, inshallah, at the end of next year.
Too thick for a PhD!
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Re: UK Pension -voluntary contributions

We recieved a letter recently stating that my husband should continue paying voluntary contributions to cover me. The 30 years is for him, but the rules with the 40 odd years continue to cover the spouse.
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Re: UK Pension -voluntary contributions

That is a very informative and highly interesting post .

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

Unfortunately I'm still no clearer about my particular case (I worked in UK sporadically from 1963 - 1979 before settling in France in 1980) so I reckon another detailed letter or email to the Pensions Office is in order ( and another 7 months wait !) As for voluntary contributions there are 2 rates :  Class 3 and the cheaper Class 2, which means in order to be eligible to pay the lower rate, I have to give the name and adress of my last employer in UK before I moved to France. I'll get there in the end - just requires lots of patience! Meanwhile Im waiting till 65 to claim my French pension so as not to have a "décote"  .
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Re: UK Pension -voluntary contributions

 idun wrote:
We recieved a letter recently stating that my husband should continue paying voluntary contributions to cover me. The 30 years is for him, but the rules with the 40 odd years continue to cover the spouse.


Your post doesn't seem to make any sense! What do you mean by "40 odd years"? My wife recently received her state pension based on 30 years and I am due to receive mine in a couple of years based (I hope) on 30 years as well. Is there some rule I have missed based on the sex of the claimant?

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Re: UK Pension -voluntary contributions

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


Again there is nothing specific in your post - can you give a reference on the UK pensions site?

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Re: UK Pension -voluntary contributions

This subject has confused me too! I got a letter from DWP asking if I wished to top-up my contributions; I currently have 41 years full contributions. Then the letter went on to tell me that the qualifying number of years is now 30.... so why would I want to buy more??? How about a refund? Smile [:)]

And while I'm getting steamed up about it, why does the governemnt reduce the number of qualifying years when it clearly can't afford to pay the pensions in the first place? surely they should be increasing the qualifying period if anything, along with raising the pension age?

 


It's difficult to say what my wife does...
She sells seashells on the seashore.
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