State Pension

Question 1

How is state pension entitlement calculated?

Answer 1

Based on qualifying years on NICs

Full state pension is based on 35 years, min is 10

If been contracted out this can change starting amount

Question 2

What is the process for obtaining state pension forecast and what does it show?

Answer 2

Request from DWP

Complete BR19

BR19 shows value of pension benefits at state pension age

Identifies gaps in NIC record

Show availability to make up pension provision - buying added years

Make class 3 NIC contributions to plug gaps

Question 3

What are the costs for buying missing years state pension?

Answer 3

Current Rates - £907.45 per annum or £17.45 per week

Contributions relating to past 2 tax years paid at that years rate

Any other year paid at current rates

Question 4

Benefits of buying missing years state pensions?

Answer 4

Secure income

Good value

Increases in line with triple lock

No investment risk

Question 5

What is triple lock with regards to state pension?

Answer 5

State pension increases in line with triplelock which is the lowest of -

CPI
Earnings
2.5%

Question 6

How far can you go back to to buy missing years for state pension?

Answer 6

There is currently an extension in place until 2025 allowing payments going back to 2006