Getting the most out of your State Pension
The Maths
A single National Insurance year costs around £800(ish), this then adds £275 a year to your state pension. Meaning that your breakeven point now becomes 3 years. So, if you live three years beyond state pension, or if you’re already at state pension age, three years beyond the point you get this, you’re quids in.
Life Expectancy
Let’s say the typical life expectancy of a 66-year-old man is typically 19 more years, so each £800 in this example would give him £5,300 back over their retirement, and that’s before the fact that State Pension is typically inflation linked.
Now, for a Women, because on average, women typically live 2 years longer than men, each £800 would be worth £5,850 extra. As you can see, we’re talking real money and it’s worth doing if you haven’t done so already. Of course, when it comes to state pension, things are not always this straightforward, so please do not rely solely on what you are hearing from us. This is complicated and I have simplified it to give you a call to arms to who should be checking it out always contact HMRC directly to find out if you are eligible.
If you would like to know what you can do to secure your retirement today, follow the link here and discover the next steps.
Next Steps...
- Check your National Insurance years – to do this, check your state pension forecast with HMRC. This is a full pension forecast for anyone has been a resident in the UK and has paid income tax during their time of residency. If you’re already over state pension age, go straight to your National Insurance record on gov.uk and it will tell you whether you are missing any years.
- If you’ve already carried out this check, and you do have a shortfall, you can buy more years, and this is the bit that has time sensitive until April 2023. You can buy National Insurance years back to 2006 – after that you can only go back six years. So, if you have National Insurance gaps for the years from 2006 to 2017 you need to decide soon whether you are going to buy them back, but if not, you will lose the opportunity to do so. In effect £800, will buy you back 1 years’ worth of NIC’s, which we are estimating will be worth £5,300 WITHOUT INFLATION.
