Last Chance To Boost Your State Pension (Everyone aged 40 - 73)
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- เผยแพร่เมื่อ 5 ก.พ. 2025
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I am a Chartered Wealth Manager and Partner in a financial planning practice based in the UK. If you would like to find out more about working with us, please follow this link: go.novawm.com/...
Step 1
Check State Pension Forecast - www.gov.uk/che...
Check NI Record - www.gov.uk/che...
Step 2
Money Saving Expert Guide - www.moneysavin...
Step 3
If you're not yet at State Pension age, contact the Future Pension Centre on 0800 731 0175.
If you're already at State Pension age, contact the Pension Service on 0800 731 0469.
Capital at risk. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change. We do not provide tax advice. Any examples used in the video are for illustrative purposes only and you may get less back than the figures shown. This video does not constitute personal advice. We do not take any responsibility for third party websites and content we may link to from this video.
Issued on behalf of Nova. Nova is a trading name of Nova Wealth Ltd, which is authorised and regulated by the Financial Conduct Authority (FRN: 778951) and is a limited company registered in England & Wales (10739796).
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Have you already taken advantage of this? How many years did you fill, and how much did that add?
I spoke with pensions, but do not automatically buy the cheapest years. It was explained to me that some years you buy will not increase your pension. They advised me which years. I needed 9 years after moving to Australia.
Sadly I have 45 years NI so wasted 45-35=10 for state pension purposes!
However I know people who haven't so have gratefully shared you video with them.
Thank you for this video. It was so informative! Have been working in the NHS no one is bothering explaining any of tbat! I will definitely look into this ❤
I filled two years a few years ago. It was not easy to get the details of how to actually do this though.
@@lonpfrb it's not really wasted. It goes into general taxation to pay for the pensions of those who retired before you and also contributes towards unemployment benefits and the NHS.
I'm retired at 47, went from Grace to Grace. This video here reminds me of my transformation from a nobody to good home, honest wife and 35k biweekly and a good daughter full of love❤️.
How did you manage to achieve that level of growth? I've been trying everything I can to improve my investments, l want to retire in a few years and I need a better diversification
It's Charlotte Gina Miller doing, she's changed my life.
The first time we had tried, we invested €14,000 and after a week we received €50,230. That really helped us a lot to pay our bills.
I'm new at this, please how can I reach her?
I'm celebrating £32K stock portfolio today... Started this journey with £3K.... I've invested no time and also with the right terms, now I have time for my family and life ahead of me.
Already have the Full Pension myself.
The more folk such as yourself let people know about this, the better.
Well done!
I Hit $32,590 today. Thank you for all the knowledge and nuggets you had thrown my way over the last week i started with 11k in last week 2025.... now i just hit $32,590
How please can you explain because I've been making a lot of looses trying to make profit trading.
VENTURING into the trading world without the help of a professionals, trading and expecting profit is like turning water into wine you would need a miracle... but mrs laura paulk restored hope she is a goooood woman
Since meeting Expert Laura Paulk now agree that with an expert managing your portfolio, the rate of profit is high, with less risk.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn't know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been supe
Since I became so rich in cryptocurrency I realise that crypto is the future cuz l invested 7k and made up to 36k as weekly profit I appreciate the help of this woman
Absolutely excellent explanation James and I’m on this Monday morning as I’m 66yrs old and have shortfall due to working abroad 👍
Thanks James, I have just checked on the Gov website and it confirmed I have the 35 years required and states that I cannot improve the value. Thanks for the advice 👍🏻
Mine says that too. I imagine that's a good thing.
Unless on benefits this government will means test the state pension.
just done this 12 thousand pound doubled my pension from 120 to 240 I'm 58 good advice
@@aficio698means test the pension? They didn't even cut the triple lock
@@Olyfrun They will this coming March in the spending review. Starting with the removal of the triple lock. Citing it is unaffordable.
I have two pensions, Social Security, and 401K withdrawals. I’m making more in retirement than when I was working. Use all the funds you can your hands on right now. NEVER DELAY!!!!!!
We retired at 60 and will have to 2 pensions and SS as well and a healthy amount of pre-tax money. Not taking SS until much later and doing roth conversions now. If i don't I will pay alot more in taxes when RMDs kick in and one one of us passes away.
When it comes to ‘’personal’’ finance/retirement planning, following the steps of a seasoned advisor did the trick for me in just 5 years. Helped turn my capital into a whooping 6 figure yearly returns.
@@Jeffcraparo any recommendations for advisory service in regards to building my portfolio? I don't really know where to start
I've stuck with ANNETTE MARIE HOLT since the pandemic, and her performance has been consistently impressive. She’s quite known in her field with over two decades of experience, simply look her up.
thanks for the lead, curiously searched Annette by her full name, easily spotted her consulting page and was able to schedule a call session, she seems highly professional from her resumé
Thank you.
At 52yrs old and never being told about any of this, and never having any interest in it, thinking that it'll just "work itself out" I need to get my ass in gear quickly because I know for a fact I've got gaps in a good portion of years.
Much appreciated. wish I'd have seen this earlier.
You still have at least 15 years working life before you qualify for state pension, so you can makeup the short fall. You need to get on the Government gateway and check your NI record.
There is one thing that isn't taken into account though. You are highly likely to be able to make up some of the shortfall in benefits of you don't have enough. For example, you can currently claim additional payments through a scheme called Pension Credits, which literally does that, if you don't get enough pension those pension credits make up the difference, or at least some of it. The less income you have the more you're likely to be able to claim.
I only know this because I'm less than 2 years from pension age and I have a lot of years missing that I have no chance of making up at any price. I asked Age Concern's pension help service what my situation was likely to be and they advised me NOT to make up any shortfall but to claim it as benefits instead. I'm not suggesting what you should or should not do, just pointing out that if you do have a shortfall you will likely not be as badly off as you may think.
Thank you for sharing this. My record is complete but it’s great you’re raising awareness about the deadline as I haven’t seen this mentioned anywhere else!
This is probably the most useful video I have watched this year. Thank you.
It’s January….
Yep. Me too. Best 16 minutes on the internet.
Thank you for this. I checked as I was concerned and found out I am not as bad off as I thought. It is a really easy process once signed in. I suspect there are a lot of people like me who don't think about these sort of things which makes videos like yours very worth while watching.
Once signed in ........ I found creating an account using an iPad difficult. It might be easier on a Smartphone.
After all that, as I predicted I have the full 35 years. I have already forwarded this to a couple of people who don't though.
Just paid missing NI and my forecast pension has gone up. So easy. Thank you very much.
Did you do it online this ? I can’t do that and have to call them up but the lines are super busy and can’t get thru 😮
Thanks, because of this, I've been able to check my state pension and look at my past contributions.
Excellent information,! Thank you! Simple process, took me less than 10 mins to complete. Added 1.5 missing years to take me to the max. Just need to live long enough now. 🙂
The most clear advice on the subject on the entire internet - Thank you very much.
I'm 65, State Pension starts April 2025 at 66. 48 years of NI contributions since 1975. 4 gap years (1991-92, 1993-94, 2019-21). Forecast confirms maximum pension (£221.20/week) as I exceed 35 qualifying years. Purchasing gap years unnecessary as contributions beyond 35 years do not increase pension above maximum. Check personal forecast before purchasing.
True but buying additional years before you hit 35 qualifying years is a hedge in old age.
@@GK-qc5rynot true, and if anything it cancels out pension credits.
I'm 65 in August 2025 but can't get my pension until 2027! Looks like they changed the goalposts at a bad time for me. I have well over 35 years Contributions.
Maximum 35 years ... after that stop paying ... go self employed.... not doing this means you are thick as f.c.u.k
@@hardlines2635 do you mean that if you couldn't work you would claim benefits and then get an NI credit?
Everyone should get a State Pension Forecast yearly x
Thanks
Thanks for the update Jack. Very useful! I watched and shared your last video with clients (especially the mothers I support who took time out to have children). I checked immediately and have 31 years paid in full so it was a relief. I've got 10ish years before early semi-retirement.m I'm grateful I'm on track for the state pension at least. Just need to review private ones now! Cheers 👍
I worked overseas for most of my career and had huge gaps in my NI contributions but 2 years ago I made up 14 years which was the maximum number of years possible. This brought me up to 27 years of contributions. Doing this doubled the pension I was getting and I'll break even in 3 years.
Excellent vlog, I’ve only recently discovered that I can put money into a private pension from my business and also donate to charity, my accountant never told me this, possibly time to find a new accountant, kind regards to you and everyone out there, take care all of you 😃👍👍
This is brilliant. Thank you! (Just forwarded to my wife, been trying to get her to do this for years but had no idea the window for long past years was still open)
Thanks for the heads up - just checked mine and my wife's and we have no missing years.
Thanks. l did it the other day. I see they have up graded their site and it has made it easier to fill gaps on-line.
Thanks again for the push to do something about it.
Glad you got it sorted!
Great work James, you are a credit to our industry, keep up the amazing work and content.
Thank you, I will do!
I retired early from corporate life & had a 6 year gap in my NI history. This meant I did not qualify for a full state pension. Following my retirement I went self employed & my NIC changed from class 1 to class 2. When I spoke to HMRC about paying the 6 year shortfall they said it would be at the class 2 NIC rate of £163 per year. I ended up paying £980 for 6 years.
Good luck getting through to them. You just sit on the call till they eventually cut off.
Yep, that is my experience too.
Good advice.....my brother in law was a del boy ducked and dived, when it come to retirement age they wondered where he has been for years and years, received £50 pension and got topped up with pension credits, so i work and get 35 years national insurance and end up basically no better off 🤔
What did the credit take it too . I'm confused are u getting less then $50 😂
@@Stan-Ard. The DWP make the payments up to meet the pension level. Only downside is you can’t have a certain amount of savings or earnings.
@@robplazzman6049 so in brief don't work for 35 years .. and get a full pension anyway 😆😆
@@robplazzman6049 so hide ur savings, and don't go work 👍😆
Good man. My wife is missing two years and they are not full price.
Spot on brother
Thanks James! I read about this a while ago then forgot all about it. I looked online and had to read twice to understand I needed one more year (a total of 37 years?) to get the full pension amount. It cost just £61 and now I’m fully topped up.
Great video, I’m about to forward it to my sister!
Hi its 35 years so don't sweat about 37 : )
Thx James very informative. I wasn’t aware of this before 👍🇬🇧
Fantastic video. My setup is near identical to yours. I've got plenty of years left in the tank so won't be buying back years at the moment, but this was really insightful thank you!
Very helpful information for anyone concerned about their NI contributions 👍
Outstanding ! Thank you so very, very much - You are doing a great service.
Just paid £9000 on line - Just in time !
Glad to help
How? It won’t let me
@@thesockdoctorr when it asks the 4 questions on whether you can pay gaps online (e.g. have you worked abroad etc) select No to all, and choose 'you've stopped paying NI' and it should then give you the gap options to pay online.
How old are you?
nice good for you, enjoy
What are the best videos I've seen on this topic! Thanks James
From $37k to $65k that's the minimum rage of profit return every month I think it's not a bad one for me,now I have enough to pay bills and take care of my family
Thanks so much Kimberly Ann Doran
I'm surprised that you just mentioned and recommended Kimberly Doran, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.
You trade with Kimberly Doran too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much
Brilliant video - what a public service!
I had old friend just passed who lived in Australia 20yrs in 70s and 80s
W😂hen he ritierd here about 2003 his pension was boosted with pension credit to nearly full state ammount ,
As stated here I don't trust the government 100% with means testing on horizon
Thank you so much. I am 68 and in receipt of my state pension, but at a greatly reduced rate through no fault of my own. I have tried to get a plain answer from the Government, but I get passed from Pensions to HMRC and back after many hours of trying I get back to square one having learnt nothing.
Can you get pension credits to top it up?
James, this was uncanny, I was checking my wife’s state pension online when this popped on my Home-Screen. This was so useful and timely, I have full contributions but my wife ‘who is 63’ has gaps. I will get on to this now but at a glance, she could get an additional 1.5k a year for a 2.5k payment ‘brilliant’ I assume this would remain index linked? The best finance channel there is.
Hi Mark that is fortuitous timing indeed!
For the time being, the state pension increases each year by the higher of : inflation, earnings growth or 2.5% - which is also known as the "triple lock".
You were being monitored, and the algorithm worked.
Hi James, yes your right, I dont envisage the triple lock remaining but it will likely be replaced by some kind of index linked metric. I am also a little concerned about future means tested state pensions. The people who will take advantage of this chance to Top Up, are the very people who may lose out because of future means testing. This could be a cynical plan to boost the coffers.
That calc sounds off; more like 980 per year for 2.5k now.
Hi @neilrushworth5958 . I did consider your point. Every time I discuss a potential purchase, my emails, Google feeds and TH-cam send me relevant ads, hardly a coincidence
Thanks for that useful piece of info. Good news is I'm on track for full whack. Bad news is I have to wait longer than I thought to get it.
You can put off claiming your pension when you reach the age as well. If you put off claiming for one, two, three years or, as many as you like, that will increase your monthly pension too when, you do decide to start claiming.
That can be useful for people who immigrated. I moved to the UK when I was 33, so I would need to work till 68 to get full 35 years of contributing. There is no option for me to buy earlier years because I hadn't had UK NI prior to moving, so there is no option to do it.
I don't see the point in that because by putting the claim off you loose money over the total amount paid over your lifetime, and you don't know how long you might live. You might be dead before you started to claim it, and then you claimed nothing from the state - all for nothing! The government then wins
Hi, we say emigrated in the UK, emigrated here, Americans say 'immigrated'. We emigrated as immigrants! Sorry not meant to be rude, just trying to fight the tidal wave of Americanisms I see everyday! 😂 (I do actually love US English...in the US)
Yes you seem stuck by lack of years paying in, to get enough contributions. It is tricky. It has happened to me also living and working in a different country from the UK.
@MikePhillips-pl6ov I think you should check a dictionary. Emigration means leaving your country of origin to live abroad. Immigration is the act of moving into a country from a foreign country. So one always does both, say I emigrated from Kazakhstan and immigrated to the UKm Immigrants - people who came to live in your country, emigrants - people who left your country to live elsewhere. You can call both migrants.
Just be careful about income tax liabilities if you defer to get a larger pension. I'll be taking it as soon as I can as at 67 who knows how many more years you have left in the tank.
Thanks to the author for the help. I will start practicing your advice, I really needed it.
I have two pensions. I would much rather have had a Roth 401k throughout my working lifetime. $500/month invested from 25 - 65 at 9% is $2.3mil. I hate my job but can't leave because of I won't get my state pension. What do you think about doing a 70/30 stocks bond ratio?
I would avoid the index funds, mutual funds, or specific stocks for the time being. 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows signs of recovery
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.
There are a lot of independent advisors you might look into. But i work with Lisa Grace Myer’ and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her.
Great advice James. I retired early with a private pension. Checking the website I see I have more than 35 years of N.I. contributions so my income should get a useful top up when the time comes.
Not necessarily only if you have a protected payment x
Honestly can't thank you enough for all the content you make. You have made an appreciable difference to my financial wellbeing as well as the many others who Ive turned on to your channel. Thank you!
So clearly explained with visuals. Thank you.
Living abroad , just bought 13years more contributions ❤
Depends on which country you live in. In some countries the state pension increases are frozen.
@stevo728822 Wrong. Doesn't matter where you emigrated to you can still buy missing NI years.
Thank you for the video. My wife is 60 and we know she has a small shortfall. Will have a look at this.
A couple of years ago I helped my mum get the 2 remaining credits she needed for the full state pension. She retired last year and it's already paid itself off. Strongly advise folks to check with their family members.
Great video! I've just moved back to the UK after living in Australia since 2010 and haven't made any contributions since then so have been saving to pay back the missing years. I had no idea you could buy back missed years until I was speaking with a relative and it seems like a no brainer. I have a good Australian pension too so I'm hoping I'll be able to get both with no restrictions. Thanks for putting this together it was really helpful.
I'd definitely suggest giving the future pension centre a call because the UK state pension does interact with some foreign state pensions.
I was in NZ from 2012 which has similar reciprocal pension agreements with the UK. I was told to call HMRC who sent me a letter confirming Class 2 payments could be made with a table showing missing years payments at a cost of roughly £163 -166pa.
@@wornoutboots2090 that's great to know thank you! How recent was that? (as in the letter from them). When I log on to the Government website it tells me I am missing 14 years at £824 but when I try to pay it tells them I need to call them so I'll do that next week. I'm also dual citizen now if that affects anything.
Regarding means testing: When old age pensions have paid all their lives into the pension, including voluntary contributions, to take from them what they have paid for can only be defined by one word: theft.
Exceptionally explained!
Great video James, will be double checking this again for myself!
I was told by the Dwp that the 35 year qualification rule is false it is amounts have paid in not years. This also assumes that the government in their grand wisdom don't make the state pension means tested benefit in the next decade, like they keep talking about. If they do you and you have a private pension you could end 1000s down.
Great Video as always James. Precise, to the point, shows you what you need to do and what decision points you have. For most (that have some cash to pay it) filling in cheaper older gaps is a no brainer.
What's the point in making full pension contributions? You will get pension credit instead which makes it up to full state pension and get extra benefits of free dental care etc..
Excellent video, I had forgotten about the deadline
Honestly i'm not expecting to ever receive a penny of the SP, even after having made the qualifying NI contributions. The threat of means testing i fear will become a reality as the goal posts get moved time and time again.
I agree. Topping up could be wasted money.
Did you vote “Labour?”
Surely if they did this, you’d have a good case for claiming back any voluntary contributions? They’re hardly going to take voluntary contributions from people and then slam the state pension door shut. That’s fraud.
Some lawyers have suggested any removal or partial removal of a person's genuine SP would have a case for claiming any loss back as this is an investment plan regardless of it being relabeled a 'benefit' some years back. State benefits are non contributory.
Great video James ; I checked my NI record and I have 2 (not full) yrs in 2015-2017 where this is shown :"We are checking this year to see if it counts towards your pension. We’ll update your record when this is finished, you do not need to do anything". The forecast does state however that I am entitled to the max if I contribute another 5 yrs and there is nothing I can do to improve my situation...it sounds slightly contradicting but I guess a call to the Future Pension centre won't hurt ...
You have to call hmrc if you are self employed. I got passed around but it’s hmrc that will give you a code to pay these missing years
@@Turkleton2000 thank you for the tip: surely it will save me some time chasing this 👍
Just FYI I’ve just checked this and it’s already saying “it’s too late to pay for gaps in your National insurance before 2006” not sure if that was mentioned
He said that in the video. That's not new information
@ ah 👌
Yes he said back to 2008 😊
Thank you for this video, and yes I have many gaps in my contributions. As I understand it I can transfer some years from my wife’s child benefit years to fill these. All very confusing though so will read the mse guide you recommended. Many thanks.
My wife has not worked the full number of years but one thing to note is if you were receiving child benefit - those years should be covered
You should ask her to check because mine shows that I have 2 years, when my child was 12 and 13 years old, that I didn’t make a contribution💁🏾 even though I was receiving Child Benefit! Tax years 2014-2015 and 2015-2016👍🏾
@@flowers1-2-1NI credits are only given for child benefit until children turn 12
A good tip, if you are over the threshold to receive child benefit then take it anyway and store on savings then send back at end of tax year via a tax return. Hassle but saves those years if one person out of work
This top up should allow me to send a few hours in retirement on the well placed 'Necker Island' advert.
4th time over one hour on the phone to HMRC...if they drop my call again I give up. Probably working from home employee decided to go for a walk or pick up the children from school or whatever. No wonder people think it is deliberate policy if it so beneficial to us (and therefore not beneficial to the government empty coffers). Good luck to you guys!
Use the online chatbot and then ask to speak to a human. It is much better than calling and usually works straight away or at least only a few minutes wait.
Had the same problem re wait times. Also I couldn’t see any option for a chatbot other than over on the HMRC website to get the 18 digit number - but that chat boot just says “no advisors are available” :(
@@matmul4850 Hi, do you mind sharing a link to the chatbot, please? The phone line is infuriating and I can't yet find the chatbot. Thanks :)
Brilliant video James 🙏 Perfect timing. I think I'm the person at 6:10 - moved to California 25 years ago in my mid 30s so only have 18 years of NI and on track to get less than 1/2 state pension. Looks like I can buy another 18 years but have to call Future Pension Centre to sort out Class 1 vs Class 2 (🤞) and how to pay. Wouldn't have been worth doing if US Congress hadn't passed the Social Security Fairness Act (WEP repeal) a few weeks ago so it feels like the pension stars are aligned for people like me.
Makes you wonder why you would want to boost your State Pension, especially when the government keep increasing the age limit to claim it, they know that many won't so more money for the government, it should have been kept to 60, I've paid into it all my life shouldn't have to wait until 67 to claim it
I think the answer lies in life expectancy stats. If you just look at the headline figure life expectancy for British men you get ONE sum. However if you search life expectancy of some one your age starting now you will find a much higher projection. Men who have made it to 80 have a life expectancy in the mid to high 80s because all the alcoholics, chronically sick and the unlucky genetically are factored out of the sum. The other thing is that because we are not in the EURO the government has the power simply print the money to pay pensions. It may be a devalued pound but will continue to cover needs.
James covered that to an extent. Traditionally pensioners are the most likely to vote.
The online Gov site advised to call them as N2 may be possible. You never get to speak to anybody you are just put on hold and told to wait for an officer doesn't matter when you call you will never get through.
Hi. I came across this by accident. I am 67 and although I still work I take my state pension. I just looked and I have 3 years I can buy back for 2472.6 to give me an extra 984 a year pension. It will only take me 2.5 years to make up the difference. Which is fantastic, thanks a lot.
The real question is why didnt my accountant who changes me a lot of money never mention this. !!!!!
That is a good question. I have an IFA who's never mentioned this either, although I have now paid the full 35 years qualifying NI and will get a full state pension next year. However it's no thanks to my IFA, who has never discussed this with me in 10 years.
I spent a year in Australia, and DWP contacted Australia and they had to pay my N.I. for a year. Although that has changed since then.
I'm in this bracket - but no way am I paying in a single penny! I'm 47 and by the time I reach retirement age (if I reach it) likely they will have moved the goalposts several times, if they haven't completely scrapped the state pension by then for some universal "everyone gets the same" scheme, irrespective of how much they've worked or contributed (which is the most likely outcome right now!). Either way I'll make my own arrangements - best life lesson I was ever given "learn to be self-sufficient in all things"
Bang on. This is a con.
I used to think like this but retirement age creeps up on you and I decided better to have belt and braces. Maybe your other plans don’t work out. I only have 4 more years to wait and am glad I have the state pension to back up my private arrangements.
in ten years time we'll be run by muslims, you aint anything from them.
It's still a great investment even if the state pension is halved before you retire.
Thank you for the transparency, really helps plan ahead.
I'm under 40 and I will achieve enough years by the time I'm 60. However, I have one specific year that I could fill for £30. To my mind, for such a low cost, it probably makes sense to just buy that year while I can. If it ends up being a waste in the end it's only £30.
Do it. You may decide to retire early on a private pension.
Yeah I would for only £30, that's a cheap years worth of NI's, and might allow you to retire a year earlier
This does need weighing up against getting pension credit to make it up the difference if it's still around.
My guess is that in 10 years time or so, you'll need 40 qualifying years of NI payments to qualify for the full State Pension instead of 35.
I’ve just checked mine as suggested in this video and although I’ve got 36 full years, I won’t get quite the full state pension- but it’s only reduced by £3 a week so not the end of the world 😂
If my 36 years wasn’t enough then maybe the length of contributions is heading towards rather 40 sooner…?
@@RebeccaHarrington-lf2kx Heh, who knows 😉I'm glad you're getting at least the "almost full state pension" 🙂In all seriousness though I do think that it's highly possible it will end up going that route. At implementation it would probably be anyone currently drawing a state pension excluded, anyone with less than 40 years and not currently drawing it would need to purchase the difference, the price for each year varying on number of years from normal retirement age.
You guess correctly imo. I'm 47 and by the time I reach retirement age (if I reach it) likely they will have moved the goalposts several times, if they haven't completely scrapped the state pension by then for some universal "everyone gets the same" scheme, irrespective of how much they've worked or contributed (which is the most likely outcome right now!). Either way I'll make my own arrangements - best life lesson I was ever given "learn to be self-sufficient in all things". I'm going to make a voluntary contribution to my own funds!
@ I think that’s a good strategy. I took out a personal pension when I was 23. It was only a small pot so I finally cashed it in at 57 and invested it myself in the US stock market. Obviously the market can rise or fall but I made more money in just a few months than the pension provider did in over 30years!
Absolutely they will scam us somehow. Just get yourself in a position of owing nothing, being as self-sufficient as possible and in a position of minimal outgoings.
Hey James! I get the message on the years not full:
It’s too late to pay for this year. You can usually only pay for the last 6 years.
Have I missed the deadline already?
I am really hoping the government doesn’t follow through with their idea of means testing the state pension. In light of recent policy on NI increase to business etc., i am not convinced they are averse to committing ‘political suicide’.
Great video; thankyou.
At this point I think the state pension as we know it will not exist in 10-15 years time. It's why I've chosen to remove it as part of my retirement planning, I just don't trust this government or future ones to not dick around with the state pension.
@ Yes, i completely agree. My worry would be buying in the missing years to then be means tested and not receive anything from the state pension. I think there would be outrage and significant pushback but any of that now, does not seem to register with this government.
I don't expect to live beyond 67 anyway, so I think of it as a bonus if I do. I am concentrating on building up a big private pension pot and retiring as early as poss
@@deanrobertnoble138 They are communists
I think what's likely to be looked at, after having means-tested the Winter Fuel Allowance, are first free prescriptions for over 60s, then free bus travel for OAPs and finally state pensions. Even the Conservatives have mooted the idea of means-testing the state pension; and so I am convinced it will at some point be seriously considered, though on a graduated scale, not all or nothing. As James Shack said, any government that makes a major change to the state pension is almost certain to be voted out of office.
Thanks for this video, im going to attend to this.
Thanks James. I'd no idea about any of this, but when I just checked my NI record I was pleasantly surprised to find that I've actually got the 35 years (just) despite a somewhat chaotic employment history. Reassuring to know.
🏆🙂👍
Great advice. But what if the non dom’s friend-winter fuel,payment snatcher goes ahead with MEANS TESTING OUR PENSIONS?
My wife was told by the tax office that she couldn't pick and choose but had to top up the latest year's first and work back from there.. Sounds like she was lied to? (this was a few years ago)
Yes, misinformation. I bought about four years - the cheapest four - spread across my record.
Very clear, helpful and informative. Thank you
Seeing your video title reminded me to actually do this. I have literally just got off the phone from the Future pension centre (who then transferred me to HMRC).
I now have the payment information including personalised reference number that I need to purchase a 1 year gap for £570.
I also received advice on how to claim two further years whilst I worked abroad.
Please try keep trying everyone you will get through on these phone lines eventually!
Great video. Thanks again!
Ive been trying to get this info since October. I can't pay online, but haven't received any info back t=from them, despite making 4 follow up phone class. What number did you call?
It's worth checking, I had 1 gap year... which was a few years back and was not my fault, when I called they said that back a few years ago they had some computer/system problems.. and it should have been marked as a full year. I'm happy I checked ...as they will now make that a full year.. even though they said it can take up to 10 months to resolve as they are busy.
Paid £4,800 to top up two years ago just before I reached state pension age. I worked and paid NI for 40 years but because I was contracted out I didn't qualify for the full state pension. £4,800 was a lot to send to the tax man but I've already got two thirds of it back and if I live into my 80's I will probably get about 5 times my investment back! Or even more, depending on the triple lock. It really is a no brainer.
Super helpful for many people I'm sure. Just checked mine - all my non qualifying years are before 2006 so I can't do anything with them. 11 more years to go! 😂
You can see why it's a bit Ponzi - I'm paying £4k a year NI and my dad's taking out £11.5k lol.
Exactly, the average person will receive more money back after 8 years state pension than they ever paid in National Insurance. That's why the state pension is unsustainable.
@@TheDavecroft And yet, 35 years at £4k per year means you pay in £140K, while 8 years of £11.5K is just £92K paid out. Looks pretty sustainable at that rate. I blame the maths teachers.
Your dad has paid in for 35 years.
If you had invested £4k 35 years ago it would be worth a lot more than £11.5k now.
@ Nope, that would make the scheme _more_ sustainable if it were how it worked. Unfortunately, the money my dad was paying in was never invested. It was being paid out to the pensioners of his time. The money I'm paid through my state pension is being funded by those working right now. The money my daughter will receive when she retires will come form the workers at that time (if there are any). There is no "pot of invested money" to be worth more than £92K per person. Try again.
For some of my years it says: “We are checking this year to see if it counts towards your pension. We’ll update your record when this is finished, you do not need to do anything.” But they’ve been “checking” for over 10 years!! No option to pay to make it a full year. During those years I was either abroad, worked part of the year, and one time I claimed back the money. Would be nice if they could figure out the voluntary contribution amount and let me know before the deadline! But unlikely, and I’ve no idea who to call.
i took early retirement 6 years ago aged 51 thinking i had 35 full years and my ni contributions stopped when i stopped working. according to my ni record i do have 35 full years listed but need another 5 years in order to get the full pension. last year when i checked it said i needed 4 more years so this appears to be increasing every year. why would 35 full years listed now not equate to a full pension in the future?
I’ve just checked mine and despite having 36 years, it’s still not enough. Thankfully the reduced rate I’ll get is only £3 per week less so no big deal. Have you checked the actual figure you’ll be getting? It might be worth paying for the missing years but maybe not, as in my case.
@@RebeccaHarrington-lf2kx yes it's about £30 a week less, £1500 a year. It'll cost just over 4k to buy 5 years so definitely worth it as i would get it back in less than 3 years. I've got until april 2026 to do this but still quite painful having to part with 4k!
@ oh dear, shame it’s a lot to find now but the payback later will definitely be worth it.
I am thinking of it this way, as some confusion arising from the transitioning between the 30 years contributions required under the old system and the 35 years now required under the new system. If you straddle both and were contracted out at some point prior to the change then you would have required more than the 30 to make up the shortfall caused now by the fact you were contracted out for a period. In my case I have just had to add 2 years to make it up to 35 which is perhaps just coincidence around the number of years. Am thinking those that we’re contracted out longer are just perhaps taking that bit longer because a greater sum needs to be clawed back to get it up to the full new state oension
@ Maybe that’s it, I think I was contracted out for a few years a long time ago, that would explain my needing 37 years.
the gov love that you are putting money in
of course they lengthened the window
Given the long term nature of pension investments, how can I optimize my retirement account for maximum growth? I’m approaching retirement and have saved $650,000 outside my pension account, my goal is to retire next 5 years with 2-3 million.
you can max out your 401k or Roth IRA and still make a fortune with stocks, my top 5 picks are APPL, TSLA, NVIDIA, AMD & PALANTIR
it's best you consider working with an investment professional to help you define your goals and how best to achieve them
Nothing beats expertise! Over 50 years of data reveals that folks who work with professionals earn more than those who do it alone. I've been fortunate enough to utilize an advisor since covid-outbreak to date, accruing nearly $1m after 100s of thousands invested.
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I've stuck with ''Karen Lynne Chess'' for 5 years now, and her performance has been consistently impressive. To be honest, if it wasn't for the pandemic, I wouldn't have supplemented my stream of income, but I'm so glad I did.
I worked full time for 40yrs but at some point my employer opted out so i have a shortfall...but as i am still in employment but under the 20hr week threshold i can claim as i am National insurance credits. This has now just about fully topped up my state pension and maxed it out. Look into to this if your in a similar position
You need to be careful about purchasing pre-2016 years, as I found out: Purchasing a pre-2016 year does not count towards the New State Pension and will be allocated against the Old State Pension, so if you already have 30 qualifying years on the Old State Pension, purchasing additonal pre-2016 years will not result in any increase in your projected pension. As the number of qualifying years increased from 30 to 35 with the New State Pension from 5th April 2016, you can only increase your projected pension by purchasing post-2016 years if you already have a full Old State Pension.
Another issue is that you won't necessarily get a full 1/35th of your projected pension by purchasing the final year, so it's worth purchasing up to the 34th year and then checking the updated projection before commiting to the last year.
Always, the small print and complexity to hide the detail that trips you up!
This is really useful, thanks !
@ when I did this in 2019/2020, there was a complete lack of explanation or guidance from the DWP, or anywhere else on this subject, yet despite this I was actually encouraged by the DWP to purchase the missing pre-2016 years which at the time were at lower rates and subject to a deadline. I did speak to the Future Pensions Centre and told them what I wanted to do and at no point did they tell me the additional years wouldn’t count. I went ahead and initially my forecast was updated but a few months later it was downgraded to the previous position. Fortunately I was able to get the contributions reallocated to post-2016 years although it cost a few £100 more!
what a great video , well done.
Making payments is a right pain if you can't pay online. First you have to call the future pension service just for them to agree that making payment is sensible. And then you have to call hmrc to make the payments. Waiting to get answered may take an hour say. Each call. If things go well. And then it takes 8 - 45 weeks to see the result after sending in the bank transfers. And I am afraid 45 wasn't a typo ! Ah well ....
Did all that and then HMRC lost my payment
I first call back in Oct 2024, told it could be 28 days before I received a letter, been phoning monthly since...still no letter
All mine that are not full just say 'We are checking this year to see if it counts towards your pension. We’ll update your record when this is finished, you do not need to do anything.' I wonder if that will change before April.
As you say, each year is worth £328, but this is GROSS. What you failed to point out is that if you have any other income, then that £328 is effectively taxed at your notional tax rate. The state pension itself is not actually taxed, but £328 of your other income that is currently tax free (falls within your personal allowance), will now be taxed. So it is more than 2.5 years to break even if you have other income.
My dad had a private pension never seen penny of it tax man took lot every year
Can someone reply to my comment so that I can come back to this please
Thanks, I was wondering about this.
I have the required Working time to claim the maximum State pension, I had de faired the start of claiming my State pension.
Oh please.... By the time I am 68 the age will be 75 at least and probably the state pension will be means tested. I am not giving this incompetent coven of thieves and liars another penny.
For those with a reduced state pension and no other pension income, before paying NI contributions to boost the SP it might be worthwhile considering applying for pension credit instead.
The reason for this is that if successful then there would be a pension credit income top up, no additional NI contributions to pay, and in addition when receiving PC there is no council tax to pay and you get the winter fuel allowance.
The above is only worrthwhile for those with a pension income below the PC limit.