State pension top up.....is that still an option?

[Dave7]

Just to explain.
We are both well retired. Something got me thinking of others approaching retirement age.
When Mrs Dave reached retirement (for a number of reasons) she only had approx 50% of the full contributions. Cant recall exactly but.....
We had the choice of a) putting in a lump sum which would then give her 90% of the weekly pension or b) a BIGGER lump sum that would give 100% weekly pension.
We were fortunate in that we had some money in the bank but......
Without a crystal ball it was a difficult choice.
We went for the 90% and for us it has worked out well.
I hope other CCrs in a similar position still have that option.

 

[SpokeyDokey]

Closed last year AFAIK.

Edit - I think this only applied to the old State Pension scheme that ended in April 2017. Apologies for any confusion.

 

[Dave7]

If you dont have enough contributions and you have less than 16K in savings (I think it is) then you will get pension credit which tops it up anyway.
I wouldnt be giving them anything extra.

Surely that encourages people to p**s it up against the wall........while others live carefully with little reward.

 

[numbnuts]

Surely that encourages people to p**s it up against the wall........while others live carefully with little reward.

Hasn't that always been the way

 

[SpokeyDokey]

[QUOTE 5178993, member: 9609"]I was helping someone with this a few weeks ago and we were able to top up missing payments from 2012 and 2013 and a complete missing year from 14 so as to complete the full 35 years. think it only cost about 900 to increase her pension (when she reaches retirement age) by 660 a year.

Even the whole years missing it is worth paying, from what I remember it was going to cost £730 to pay for the complete missing year and this would increase the pension by 4.24 a week - hence you get the voluntary contribution back every 3 years[/QUOTE]

Yes - I think the info' I posted applied to top-ups under the old State Pension scheme and they ended 05/05/2017.

I'll edit my post to reflect this.

 

[Smokin Joe]

Surely that encourages people to p**s it up against the wall........while others live carefully with little reward.

There are lots of people who have genuine reasons for a shortfall in contributions. Those who are self employed and on low earnings, for example.

 

[Bonefish Blues]

There are lots of people who have genuine reasons for a shortfall in contributions. Those who are self employed and on low earnings, for example.

Indeed, and many more reasons. Females have an inbuilt disadvantage, yet I cannot, for instance, transfer any contributions to her to compensate for the several years where she has performed a role which has considerably reduced the burden on the state, without any compensation.

 

[GetAGrip]

I did this last year. I topped up as many years as was able. I ran out of time on a couple of years so will fall a little short of the main basic pension.
I didn't pay a full stamp some years for various reasons, not one of them though was due to laziness or expecting the state to keep me.

 

[Dave7]

There are lots of people who have genuine reasons for a shortfall in contributions. Those who are self employed and on low earnings, for example.

I wasnt suggesting that there arent lots of genuine cases.....merely saying it may encourage others not to bother.....if they are going to get it either way.

 

[Dave7]

Indeed, and many more reasons. Females have an inbuilt disadvantage, yet I cannot, for instance, transfer any contributions to her to compensate for the several years where she has performed a role which has considerably reduced the burden on the state, without any compensation.

Agree....Mrs Dave was such a case. For several reasons she missed years of paid work. As I said.....fortunately we were allowed to top it up.

 

[Sandra6]

If you don't work and pay NI because you're looking after a child or caring for a disabled person you can claim home responsibilities protection which makes up your contributions for those years.

 

[Bonefish Blues]

Agree....Mrs Dave was such a case. For several reasons she missed years of paid work. As I said.....fortunately we were allowed to top it up.

I'm at max, all but a month or few, but she's well short. A really enlightened system would allow me to transfer a proportion of my Class 1s to her.

 

[Bromptonaut]

I wasnt suggesting that there arent lots of genuine cases.....merely saying it may encourage others not to bother.....if they are going to get it either way.

It is of course possible. The underpinning minimum in Pension Credit from April 18 is £163/pw, not exactly a King's Ransom.

The starting point has to be that pensioner poverty is not acceptable in a civilised society. No means test can differentiate the unfortunate from those who drank and smoked any surplus income.