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Spot on - paying back any missing years is probably the best investment you'll ever make (assuming you're in reasonable health). Usually a payback period of less than three years to get your money back! Every year after that it's a like a free season ticked funded by the Government!
That is for a full basic state pension. If you go onto gov.uk to check your own future state pension entitlement (can't do this if you are already getting state pension or deferred) it shows in very big numbers the state pension you should get if you have paid enhanced NI for additional state pension (S2P or SERPS). For most people paying NI as employees with an occupational pension scheme their full entitlement will be the lower basic pension figure (shown in much smaller numbers on the gov.uk page). If that is the case you haven't missed out as the difference in NI payments from employer and employee will have gone into the occupational pension pot.
The information on making additional NI payments to reach the higher forecast is confused. It doesn't distinguish between topping up the contracted out level of NI with 'missing years' - which in my case were after I retired. I have already got 36 NI qualifying years so shouldn't need to fill in any gaps but it may make sense to top up if that is possible! It will have to be a phone call.
It was all clear as day 6 years ago - but now not.
Every time I have taken financial advice it has ended it tears. Pensions, AVC's and endowment mortgage.
I have no doubt that many people enjoy great benefits from consulting financial advisers but my fingers have been burned numerous times.
You're not alone - before joining financial services 20 years ago I myself was mis-sold an endowment mortgage!
Things are infinitely better now than 20 years ago; standards of qualification and professionalism are far higher. However the British Steel pension situation a year or two ago sadly shows that poor advice and mis-selling haven't completely disappeared.
Future Pensions is your first stop:
https://www.gov.uk/future-pension-centre
Such a difficult call this one, as there are so many things to take account, as you have highlighted. I spoke to 3 different IFAs and ended up cashing my final salary in. My wife kept hers. As someone once said to me you'll only really know what was the right decision after you die!
Spot on. If your sitauion is really complex, or you are looking at investing a really large sum of money, I often recommend chatting to a couple of IFAs and make sure that you find someone that you're comfortable with and can work with.
The overall advice should be similar - there will be nuances, and no two advisers are likely to recommend the same specific investment - however whatever is recommended should be suitable for you.
I haven't paid any NICs since 2005. I have 5 missing gap years to make up to qualify for a full pension.
I made a bank payment (class 3) last week for one of those missing years. Once they update my record on the Government Gateway site, I'll make the remaining four payments in one go.
I contributed to a German State Pension for about 15 months in the late 70's - and three of those months I was on 'Schlechtwettergeld' (i.e. paid only a proportion of my wages when the weather wouldn't permit me to work as a labourer on a building site) and for three weeks between jobs I was on the German dole. For that 15 months my German pension will be around 5% of the value of my UK State Pension!
The moral of the story is: build up a State Pension elsewhere once you have contributed for the required period in the UK.
I am going to avoid the bloke that effed up our mortgage when we were buying a house. Deal nearly collapsed and we had already moved out from the other place. Saying that, he'll be retired by then anyway, unless he follows his own advice in which case he will still have to work
That advert warning of Scams is the best thing that the FCA have ever done. Many would say it's about the only good thing that they've done.
Last week a client of mine, who we've been looking after for over 10 years encashed £250,000 to invest in what stinks of a financial Scam. He's been promised a 'guaranteed' return of 8% per annum income, and they're paying this on a sample of £10k that he invested two months ago.
I would bet my house that he, or his family will never see any of that money again - and the people he's given it to are not FCA regulated so he's got absolutely no recourse if they spend the £250k on Jetskis.
It gets my blood boiling just thinking about it.
I think you need to make this a sticky Mike, I'm sure many will look it up in the future. It sounds like I'm in the same boat as many with 4 different company schemes. I'll look to retire in the next 2~3 years but need to understand the numbers as I got shifted from 65 to 66 (not as bad as my wife who moved from 60-67!)
It can take a month or two for your online record to be updated. Tip: give HMRC a ring a couple of weeks after paying your NIC to check payment has been credited to your account. When it comes to the HMRC voice-activated "in a few words tell us why you have rung us today" say nothing. Keep saying nothing to any further questions until the one about "is it you you are ringing about" ( or something like that). Say "yes" and you will get straight through to an HMRC advisor.
And if there are any younger guns on here, I would like to suggest you look into opening a stocks and shares ISA, best advice I ever had as a kid
I invested £12,000 inheritance at 19 years old, and just choose 20 random mutual funds from hargreaves & lansdown and put £600 in each of them.
my average return for the last 9 years has been 8%-15%
the compound interest in the real shit, at current protections that £12,000 will be worth around £450,000 - £500,000 at 55 years old. the hardest part was not touching it! not even for a house deposit.