Monday 29th June
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| It needs washing and blocking |
It's been a productive day. This morning I returned 2 books to the library, picked up 2 more and used the computer and printing facilities as I don't have either at home.
I'm short of 6 years' contributions in order to receive a full state pension in 2032. I've known for years that I was short, since the goalposts for contributions were moved, but didn't have money spare to buy the years... it would cost approximately £900 for each missing one.
I have been looking after our little one for 3+ years though ( 3 complete tax years +) so today I finally completed the form to receive specified childcare credits. During those years, my daughter has paid sufficient national insurance contributions to count towards a state pension
(if there is such a thing by the time she is old), so she doesn't need the protection of her child benefit credits.
She's passing them to me, as she is entitled to do, so today I've claimed for 2023/ 2024 and 2024/2025. In November I'll be able to claim for 2025/2026, giving me 3 of the missing 6 years towards my full state pension. I'll continue to do this as I'll be needed to cover some school holidays, until I have sufficient years.
This afternoon I completed my first item towards our niece's baby gift. It's a matinee coat that I knitted for both of my girls, my grandchild, countless friends and colleagues, my former hairdresser, and a local hospital charity. It comes from the pattern book my mother in law gave to me in 1988.
I should do the same really with the NI credits. I've got 6 grandchildren and have looked after them all at some point - I still do!! I'm also short on NI contributions - 4yrs worth. I get my state pension in 5yrs, its predicted to be in the region of £200 a week. I receive an NHS pension, which is small, so by then I'll be paying tax no doubt. I've therefore decided not to make up the shortfall. I have the figures I need to pay, but the person I spoke to advised that there's a backlog and any voluntary contributions can take up to a year to show on your record.
ReplyDeleteI think it said you can claim as far back as 2011. Mine is predicted at £205, which is £36 per week short of the full amount so it's definitely worth me claiming. I cashed in my private pension at 55 as it was very small and I'd have had to live forever to get my money out of it!
ReplyDeleteFollowing on from my first comment, you've got me thinking!! I've just looked at the letter HMRC sent, with details & payment due dates, etc, but they're a lot cheaper than yours. 2019/20 - £147, 2020/21 - £164.50, 2021/22 - £182, 2022/23 - £182 - payable by April 26, April 27, April 28 & April 29. These are voluntary class 3. It's a minefield - you just don't know what to do for the best!
ReplyDeleteWould it be worth using a tax calculator online to see what the difference would be between you having a full pension plus your NHS pension and paying tax versus having a reduced state pension plus your NHS pension? That might give you a clearer picture of the difference. If you could get your extra years without paying for them due to looking after your grandchildren, all the better.
DeleteMy forecast is more than I thought - £219.84 a week. If I make up 4yrs, it'd be the maximum of £241.30. I'm just leaving it at that as I'll have a small NHS pension as well - probably won't be entitled to any benefits like winter fuel, etc.
DeleteI had to pay for missing NI years as well. Although I had worked, I'd worked in the same business as my husband and he's stopped paying my NI as an economy measure.
ReplyDeleteThats terrible! Was it very expensive for you? From what Mrs LH has said above it seems the amount it costs varies dramatically.
DeleteI too had missing NI years and no way financially to make it up, so my state pension which I started receiving the end of last year is much smaller than husband's. However, it's still quite a bit more than I was getting in carers allowance, which is automatically stopped once you reach state pension age 🤬 (don't get me started!). xx
ReplyDeleteThats infuriating Sooze! Did your husband lose his attendance allowance ( if he received it) or is it just the carer ( mainly women) who is affected? I'm grateful that my daughter is more than happy to hand her credits to me so that I don't lose out. Luckily I had 25 years of protection of my own due to child benefit which covers the years when I didn't earn enough to pay sufficient national insurance for the years to count.
DeleteHusband still gets his attendance allowance, that's not affected, just my carers allowance. Which is so unfair. I even emailed our MP about it, she was sympathetic but that was all.
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