RAF Pension - no increase this year?
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BW - like myself, we paid in a reduced contribution approx. 1.6% less. My 34 years of contributions (to apr 2015) equated to 27 full years. Go to https://www.tax.service.gov.uk/gg/si...ype=individual
you will need a government gateway account to access your figures but its quick and easy set-up - National insurance number and passport
you will need a government gateway account to access your figures but its quick and easy set-up - National insurance number and passport
Join Date: Aug 2010
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It very much depends how much longer you have to go until your state pension age. Providing you have 7.5 yrs of working like to state pension age to pay the higher NICs you will be OK. Take a look at the State Pension calculator.
Join Date: Nov 2014
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Any accountants or tax experts out there?
I don't own this space under my name. I should have leased it while I still could
MPN, sort of. If you don't pay tax at 40% and make a transfer election if the lower paid earns less than £11000 it becomes £12000/£10000 or thereabouts. Of course there is also claw back of £1 for £2 or the other way around if you earn too much.
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PN ... so this "Tax Haven" isn't hugely different to UK ... unless you have a large income which would hit the 40% barrier.
Isn't it funny how the Media make such a big deal out of it
Isn't it funny how the Media make such a big deal out of it
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SWIL
On this 6th April. DWP compared the pension entitlement one has accrued under the old system with the sum accrued theoretically if the new single tier pension rules had been in place in the past. This is called the state pension "Starting Amount" For those contracted out who had paid 30 years of NI, one would get the full basic pension of £119 per week. For most public sector workers, this would be more than the single tier calculation which would be lower because of the "rebate derived deduction" for contracting out. So instead of £155 per week single tier pension for 35 years of NI, you would only have accrued approx £70 under the new rules. BUT your starting amount is the higher of both figures ie £119 per week. As contracting out is no longer possible, each additional full year of NI paid from now on should increase the starting amount by £4.40 per week. So if one works and pays NI for another 8.5 years from now, one would get the full single tier amount (£119 + £37 [£4.40 x 8.5] = £156 [actually £155 as that is the flat rate])
On this 6th April. DWP compared the pension entitlement one has accrued under the old system with the sum accrued theoretically if the new single tier pension rules had been in place in the past. This is called the state pension "Starting Amount" For those contracted out who had paid 30 years of NI, one would get the full basic pension of £119 per week. For most public sector workers, this would be more than the single tier calculation which would be lower because of the "rebate derived deduction" for contracting out. So instead of £155 per week single tier pension for 35 years of NI, you would only have accrued approx £70 under the new rules. BUT your starting amount is the higher of both figures ie £119 per week. As contracting out is no longer possible, each additional full year of NI paid from now on should increase the starting amount by £4.40 per week. So if one works and pays NI for another 8.5 years from now, one would get the full single tier amount (£119 + £37 [£4.40 x 8.5] = £156 [actually £155 as that is the flat rate])
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Whereas I now get £121 a week for only doing 30 years Mil (contracted out) and 5 years paid (normal) post-Mil. I can only guess that's right ... who knows, these days, when they keep farting around with the numbers?
Join Date: Nov 2014
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Cheers F.O.D, understand it now!!
DWP say that 45% of those retiring between now and 2021 will not get the full amount unless they "buy" additional NI years.
"What HMRC and DWP giveth today they take off you tomorrow"
DWP say that 45% of those retiring between now and 2021 will not get the full amount unless they "buy" additional NI years.
"What HMRC and DWP giveth today they take off you tomorrow"
Far too complicated to try and work out how much my contracted out reduction is, but I once got I got into the DWP site (through enough security questions to join MI5, that will teach me to do it on the phone 
) it gave me this forecast:
Assuming the year Apr 2015 - Apr 2016 will give me an extra 1 years worth, this should give me a full flat rate pension with 5 more years contributions.
Good job it's not complicated...
Edited to ask: once I've built up the full whack, can I stop paying NI?
) it gave me this forecast:Amount based on your latest National Insurance record (5 April 2015)
£128.89 a week
which is £560.44 a month, £6,725.30 a year
Amount you may get to if you continue to contribute
£155.65 a week
which is £676.80 a month, £8,121.59 a year
(Based on 17-ish years contracted out service, 7-ish years since then as a non-contracted out filthy civvy)£128.89 a week
which is £560.44 a month, £6,725.30 a year
Amount you may get to if you continue to contribute
£155.65 a week
which is £676.80 a month, £8,121.59 a year
Assuming the year Apr 2015 - Apr 2016 will give me an extra 1 years worth, this should give me a full flat rate pension with 5 more years contributions.
Good job it's not complicated...
Edited to ask: once I've built up the full whack, can I stop paying NI?
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You pay NI as long as you are employed in a job paying over the NI threshold and under your state pension age. You do not even escape by being self-employed - you pay from your bank account rather than your pay.
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I'm still confused as to how I pay so much more NI than my wife (not contracted out) yet her contributions count for a higher state pension than mine.
I don't own this space under my name. I should have leased it while I still could
In Mrs PN s case her NI payments were way too low but she was encouraged to buy in. We did and it has probably paid off, 8 years on come September.
