Pensioners could be at risk of wasting hundreds of pounds on topping up their pension unnecessarily.
state pension Currently the value is up to £185.15 per week.
You will need 35 qualifying years to achieve this National Insurance contributions,
If you do not have that many years then you will get less pension amount, and if you have less than 10 years of NIC then nothing
national insurance There is a tax that you pay after you are over 16 years old and earn a fixed salary.
Department of Work and Pensions The website will allow you to check the state pension forecast.
This means you can find out if there are any deficiencies in your National Insurance records.
If there is any which means you fall short of the required number of years then you can pay the amount missing Through voluntary NI contribution.
It’s often worth doing this because you get back more than you pay from your state pension.
Although sir steveLen Clark & Peacock, a partner at pension consultancy, warned that the information displayed could be potentially misleading.
Website displays people’s shortcomings national insurance Records – and displays the cost of “filling the shortfall”.
But this performance is visible even when a person has full years and will already receive a full state pension
This could lead some people to pay hundreds of pounds more government without any reason.
Sir Steve was approached by David Kemp, a 62-year-old retired HR consultant Devon Which was encouraged to increase his pension.
The DWP website said he had 44 years of full contribution, which means he is entitled to a full pension.
But scrolling down the page further, it said there was a difference. He would have to pay £600 to close it.
Sir Steve said: “When people visit a government website that is supposed to provide them with personal information, they expect that information to be relevant to them.
“In this case, and no doubt that of many others, Mr. Kemp was presented with a very accurate figure to make up for a ‘lacking’ in his NI record, yet it was entirely a fit for his position.” was irrelevant.”
“Worse, he could have wasted hundreds of pounds by making unnecessary payments.”
The pension expert said the DWP should make changes to the website “as an immediate” so that those who cannot avail benefits like Mr. Kemp did not get the figures cited for making such payments.
DWP has been contacted for comment.
How to Check Your National Insurance Records
National Insurance contributions Usually taken directly from your salary if you are employed or through self-assessment for self-employed.If people were unemployed, low-income, or self-employed, they often had gaps.
You can see how many years you have made NI payments and view any missing years official website.If you do not already have an account, you will need to create a Government Gateway account online.
you can also request a statement online, on the phone Or by mail, but write to: Office of National Insurance Contributions and Employers, HM Revenue & Customs, BX911AN The closer you get to retirement, the more important it is to check how many years you have. If you have a gap that means you can’t reach 35 qualifying years, you can still take action so you don’t miss out on cash.
If you don’t have enough National Insurance contributions to receive a full state pension, or even any state pension, you can choose to purchase additional credits.
You can do this before and once you reach the state pension age.
Most people will do this by purchasing what is known as a Class 3 National Insurance Credit to fill in the gaps in their records at a cost of £15.40 per week for the 2021/22 fiscal year.
So to get a full year’s worth, and you’ll pay £800.80.
For those whose records have gaps on or after April 6, 2016, you can add 1/35 to your state pension for life.
This may sound like a lot, but it will increase your state pension by over £200 a year.
This means that it will take less than four years to receive more than the state pension that you would have spent for contributions in the first place – and you will continue to receive this increased state pension for the rest of your life. ,
Just keep in mind that you can usually only pay for gaps in your National Insurance records for the past six years.
If you are self-employed and are buying Class 2 contributions, the rules for how much you pay are also slightly different.
You can find out more about making Voluntary National Insurance contribution from gov.uk.
The rules are complex so it may be worth seeking financial advice or Contacting Future Pension Center To find out if you would benefit from paying extra.
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