Gap in National Insurance Contributions

[Box of Frogs]

My wife got a letter last week advising her that there is a gap in her NICs for the 2010-11 tax year.

Now, she already has 26 qualifying years of NICs towards her state pension. They have said she can pay £614.55 to make up the gap. This seems a staggering amount.

I know she doesn't have to pay it but my question is, if she doesn't pay it or doesn't work another four years before she retires, will she simply get 26/30 (87%) of the state pension or is there some other calculation that I don't know about?

 

[HovaGirl]

My wife got a letter last week advising her that there is a gap in her NICs for the 2010-11 tax year.

Now, she already has 26 qualifying years of NICs towards her state pension. They have said she can pay £614.55 to make up the gap. This seems a staggering amount.

I know she doesn't have to pay it but my question is, if she doesn't pay it or doesn't work another four years before she retires, will she simply get 26/30 (87%) of the state pension or is there some other calculation that I don't know about?

I think you need 30 years' contributions before you qualify for the whole state pension, so it's something to think about.

 

[Raleigh Chopper]

I had a massive gap in my contributions, i cannot remember how, but the tax people paid it all back, I am tired and still on a high from the golf, but when I remember I will get back to you so keep an eye on your thread. It was not a tax fault, as I was a house husband for many years so did not contribute at all, sorry I cannot be more help at the moment.

 

[Titus]

It's well worth paying, as you can live for 30 years in retirement these days if one is healthy.

 

[Mo Gosfield]

I could be wrong but I think it is 30 qualifying years for women and 37 for men, for full state pension entitlement.

 

[Driver8]

I could be wrong but I think it is 30 qualifying years for women and 37 for men, for full state pension entitlement.

You are, it's 30 for both.

 

[Albumen]

It's well worth paying, as you can live for 30 years in retirement these days if one is healthy.

But now the NHS is being sold off you're f***ed if you're not.

 

[Titus]

But now the NHS is being sold off you're f***ed if you're not.

Did you dream this?

 

[Super Steve Earle]

Check the letter carefully. Does the letter say she doesn't have to pay because the dates have an asterisk (*) by the side? This might be if she had children of child benefit age to care for?

 

[smudge]

I've got 7 bloody years to catch up on, bugger; I paid for 26 years but haven't kept up the payments since working for a yank company.

 

[Albumen]

Did you dream this?

Unfortunately not. Nice if you can afford it though.

 

[Albumen]

. double post. silly browser.

 

[Box of Frogs]

Yes it is 30 years to qualify for full pension for men and women. It looks like she will get £14 a week less pension as she only has 26 years qualifying, unless she pays the £650 to catch up. Presumably the same for the following three years too? So pay £650 to get £730 back - doesn't seem a great deal does it?!?!

 

[Driver8]

Yes it is 30 years to qualify for full pension for men and women. It looks like she will get £14 a week less pension as she only has 26 years qualifying, unless she pays the £650 to catch up. Presumably the same for the following three years too? So pay £650 to get £730 back - doesn't seem a great deal does it?!?!

Actually it's a cracking deal. Assuming the cost is similar each year she will have paid £2,600 in exchange for £728 p.a pension. She would need a pension pot of about £20k to provide a similar pension privately.

 

[Set of Tracksuits]

Actually it's a cracking deal. Assuming the cost is similar each year she will have paid £2,600 in exchange for £728 p.a pension. She would need a pension pot of about £20k to provide a similar pension privately.

Absolutely this.

 

[Peter Grummit]

Check the letter carefully. Does the letter say she doesn't have to pay because the dates have an asterisk (*) by the side? This might be if she had children of child benefit age to care for?

Is this a general exclusion for men and women? Do you have to inform the Revenue if it applies?

PG

 

[Super Steve Earle]

I think it's just women.

 

[Aadam]

I've got 7 bloody years to catch up on, bugger; I paid for 26 years but haven't kept up the payments since working for a yank company.

It's 30 years for men and women. You have 4 years to catch up on.

Driver8 -- any significance to your username? I've seen it before on another forum.

 

[Raleigh Chopper]

I had a massive gap in my contributions, i cannot remember how, but the tax people paid it all back, I am tired and still on a high from the golf, but when I remember I will get back to you so keep an eye on your thread. It was not a tax fault, as I was a house husband for many years so did not contribute at all, sorry I cannot be more help at the moment.

Remember now, be I am no use to you im afraid.
I was a house husband for 7 years, as my wife applied for child benefit she got NI paid on top of what she was already paying. Got letters saying I was short on my payments and then found out it could have gone to me, called tax office and they took it from her and gave it to me instead, I am now up to date, sorry that this does not help you.

 

[fly high]

But now the NHS is being sold off you're f***ed if you're not.

actually considering the disgraceful treatment friends & family have received from the NHS best not to get sick ever but especially if you are old. I get so angry just thinking about it, might be better if some of the incompetent arseholes were privatised & don't shout cuts at me, most happened at a time when billions of extra money was being pumped into their budget.