PENSION DEADLINE – YOUR STATE PENSION

Dominic Thomas
March 2025  •  3 min read

PENSION DEADLINE – YOUR STATE PENSION

I’ve had a few enquiries from people who have seen something in the news but aren’t clear about what it is. There is a sense of urgency and the information seems to be coming from reliable sites, so what is it?

‘BOOST’ YOUR PENSION

The tax year ends on 5th April 2025 a few weeks away now. This is a deadline for people who wish to make up (backfill if you will) missing or incomplete years of national insurance contributions. The timeframe is closing, it’s a use it or lose it situation.

Why would you?

Firstly, this only applies to people under State Pension Age (SPA). To get a full State Pension, you need 35 years of National Insurance contributions, which for the record, technically can begin when you are 16 until you are 67 or older. So most people will have a ‘working career’ of 51 years to build 35.

If you have had breaks in your employment (maternity, child care, working abroad, redundancy, sickness) then you will likely find that you don’t have a full record. So on the assumption (red flag) that you work and pay NI until your State Pension Age, then you can estimate how many years you will have.

If you build more than 35 years, you do not get a bigger pension.

Time is Running Out

Until 5th April 2025 you can buy the missing years (for a price) all the way back to 2006. Once the new tax year starts, you will only be able to make up incomplete years in the last six tax years.

You are smart enough to know that ‘the system’ is under some strain, so getting the data and paying for the missed years is going to be arduous.

So the first thing to do is check your NI record. You get a list of every tax year since you were 16 (fairly enlightening as an experience). If you spot missing years, perhaps there has been an error? If not, then estimate how many more full tax years you are likely to work for yourself or someone else until State Pension age.

WARNING: Estimating Your Lifetime

You have to give this some thought, a State Pension pays out for your lifetime, so if you die before getting one, well, that’s lost. As a warning, from both experience and research, most people underestimate how long they will live, so beware of that. You may also have a condition that shortens your life expectancy. So to pretend that this is an easy calculation is misleading.

The State Pension is very good value, it provides a guaranteed income for life, it is taxable but for most will fall within the current personal allowance for 0% tax.

Check your NI record, get a State Pension forecast – but remember that they assume you work until your State Pension age. Whilst you are there check the date of when that is for you. You can find the links in our resources section or start by clicking here.

Link to your NI records: https://www.gov.uk/check-national-insurance-record

PENSION DEADLINE – YOUR STATE PENSION2025-03-07T16:05:43+00:00

What’s your reaction time?

Dominic Thomas
Jan 2025  •  3 min read

What’s your reaction time?

Those who know me, know that I struggle with fairness. I don’t like unfairness of almost any type. My inner child is petulant, often easily triggered by things that I disagree with. I feel it and the response in me is often almost instantaneous. This isn’t limited to the world through the lens of television or monitor, but leaks into very basic mundane tasks like a simple trip in the car.

I have acknowledged this problem and have spent years working on myself. It took longer than I would have liked to leave the world of Twitter and much social media. There was a sense of community with my peers within the financial planning space; we would share ideas and concerns, helping us all become better at what we do for our clients. However, within the same space, it seemed largely irrelevant how many filters were selected, there were countless issues and opinions designed to trigger, agitate and frustrate; to cause grief and angst. To divide.

So I left. Several months ago, very rarely looking back. Today neither my PC nor phone retain memory of my presence there.

There is a lot to trigger most of us, most of the time. There is a balance between engagement and disinterest. It isn’t always clearcut. Your opinions and beliefs are nothing more than opinions and beliefs. Facts are facts yet seem skewed and interpreted, reframed and deflected to suit a particular previously held belief.

We can argue about almost anything and despite the lessons from history, we seem determined to repeat making the same mistakes. On the one hand, it doesn’t matter what the topic is -American politics, a war somewhere that is being forgotten as lives are destroyed, an Olympic event or ceremony, a celebrity, the billionaire, immigration, monarchy, the poor ‘working’ class white male, or your politics of the day. These things trigger each of us very differently.

A few months ago in my bubble of sector news, I read the headline: “Reaction as inflation rises for the first time this year”. This was from Money Marketing magazine. I assume the editor really knows that this is wrong on various points:

  • Inflation means prices are rising
  • They mean that the rate of increase has increased (it was still inflating)
  • My reaction to it or anyone else’s is largely after the event, but of course this is designed to arouse a sense of greater anxiety, in an already uncertain world

The article went on to quote reactions and ‘research’ that half of investors believe that inflation will rise again over the next six months (frankly about as useful as a coin toss, half do, half don’t). Anyone who has paid for a holiday or hotel or a theatre ticket, will know that prices have risen… is it coincidence that your flights and holidays were booked during the time of “rising prices”?

We know inflation is a big deal. It erodes the value of your spending power. Hence why you invest in real companies, making and providing real things with a future. One of my peers calls most of the financial news “financial porn” which seems fair. A lot of people are addicted to stuff that doesn’t serve their own wellbeing. In fact, it’s largely detrimental.

We could all do with pausing for thought a little more. Whether consuming what is often described as ‘news’ or scrolling through social media or driving your car and getting stuck in yet another over-managed section of roadworks. We don’t need the reaction times of a motor racing driver; we have our own goals and plans and shouldn’t be swayed by the agenda of others.

What’s your reaction time?2024-12-20T11:07:23+00:00

The Cold Shoulder?

Daniel Liddicott
May 2023  •  3 min read

Call me (or rather, don’t)

Public service announcement: News broke yesterday of the Government’s plan to ban all cold calling related to the sale of financial products. This measure was already in place on any sales cold calling related to pension products, however the government is now due to extend the ban to cover any unsolicited calls of this kind.

The idea is that when this measure is put into place, anyone receiving an unexpected sales call regarding anything from insurance to investments will know that the call is not genuine and is indeed an attempted scam.

You might say that this is a case of better late than never. The government stated that “fraud costs the UK nearly £7bn per year”. Financial scams have the potential to be hugely damaging and significantly life-changing.

Back in our Spring 2021 edition of Spotlight, we published an article about Emmeline Hartley, who was happy to share her story of being the victim of such a scam (see page 10!).

So, in light of this, you can rest assured that should you receive a cold call of this nature, hanging up the phone immediately is a perfectly justified course of action. Or should you have the time and inclination, you could take the would-be fraudster on a wild goose chase for the details that they will never obtain from you. Or you could try putting them on hold. Just a couple of ideas.

The Cold Shoulder?2025-01-21T15:39:12+00:00
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