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  • FIRST POST
    • liviboy
    • By liviboy 9th Jul 17, 10:23 PM
    • 334Posts
    • 104Thanks
    liviboy
    Buying NI years (currently living overseas)
    • #1
    • 9th Jul 17, 10:23 PM
    Buying NI years (currently living overseas) 9th Jul 17 at 10:23 PM
    Hi there,

    My mum moved over to the USA in 2004 (she is currently 58). Prior to that she worked full time or was credited for NI due to looking after me.

    She is looking to return to live in the UK at some point in the next few years.

    Having checked her state pension forecast, I just wanted to clarify that to increase her state pension, she should ONLY look to purchase post-2016 NI years rather than any years prior to that. From what I understand pre-2016 years would have no impact on her SP.

    When she moved back over her plan would be to find a job so potentially she'd only be looking to purchase a few NI years.

    Just want to make sure she doesn't fork out for something that isn't, long-term, going to benefit her.

    Thanks :-)
Page 1
    • molerat
    • By molerat 9th Jul 17, 10:42 PM
    • 16,737 Posts
    • 10,967 Thanks
    molerat
    • #2
    • 9th Jul 17, 10:42 PM
    • #2
    • 9th Jul 17, 10:42 PM
    How many years does she currently have ?
    Was she ever contracted out - does her forecast show a COPE amount ?

    If she has 35 or more years there is no value to buying pre 2016 years.
    If she has less than 35 but more than 30 there may be some value buying pre 2016 if not contracted out and showing a COPE amount.
    If she has less than 30 years buying pre 2016 years will add value.
    Last edited by molerat; 09-07-2017 at 10:45 PM.
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    • liviboy
    • By liviboy 10th Jul 17, 12:53 PM
    • 334 Posts
    • 104 Thanks
    liviboy
    • #3
    • 10th Jul 17, 12:53 PM
    • #3
    • 10th Jul 17, 12:53 PM
    Hi Molerat,

    Here are the figures:

    30 years of full contributions
    9 years to contribute
    11 years when she did not contribute enough.

    Her COPE amount is £9.29 pw

    Her SP estimate based on her record is £133.45 pw

    Forecast if she contributed another 6 years: £159.55 pw

    Hope that helps.

    Cheers again.
    Last edited by liviboy; 10-07-2017 at 1:00 PM.
    • molerat
    • By molerat 10th Jul 17, 1:36 PM
    • 16,737 Posts
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    molerat
    • #4
    • 10th Jul 17, 1:36 PM
    • #4
    • 10th Jul 17, 1:36 PM
    I assume, as she has been out of the UK since 2004, she has no part paid years 2006 to 16. No point paying full price for them as 2 of them would be wiped out by the COPE deduction - her current amount would be based on 30 years old scheme. Post 2016 would be the only way to go if that is the case.
    Last edited by molerat; 10-07-2017 at 2:10 PM.
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    • liviboy
    • By liviboy 10th Jul 17, 2:12 PM
    • 334 Posts
    • 104 Thanks
    liviboy
    • #5
    • 10th Jul 17, 2:12 PM
    • #5
    • 10th Jul 17, 2:12 PM
    I assume, as she has been out of the UK since 2004, she has no part paid years 2006 to 16. No point paying full price for them as 2 of them would be wiped out by the COPE deduction - her current amount would be based on 30 years old scheme. Post 2016 would be the only way to go if that is the case.
    Originally posted by molerat
    You assume correctly.

    So, would purchasing 2016-17 for example increase her SP amount, but 2015-16 wouldn't as it would've swallowed up by the COPE?
    • molerat
    • By molerat 10th Jul 17, 3:18 PM
    • 16,737 Posts
    • 10,967 Thanks
    molerat
    • #6
    • 10th Jul 17, 3:18 PM
    • #6
    • 10th Jul 17, 3:18 PM
    Correct.

    The April 2016 starting amount would be the higher of £119.33 / 30 x 30 + S2P or £155.65 / 35 x 30 - COPE so (£133.45 / 1.025 =) £130.19 or £124.12. No pre 2016 years can be added to the old style calculation as the maximum 30 years has been accrued. Adding 1 pre 2016 year would bring the new scheme figure up to £128.57 - still below the starting amount, 1 more would bring it up to £133.02- only a gain of £2.83. Buying 2 post 2016 years would add £8.90 to the starting amount bringing it up to £139.09.

    To reach the maximum amount she would need 7 pre 2016 years or 6 post, the reason why I asked about part paid years as it could tip the balance in the total cost.
    Last edited by molerat; 10-07-2017 at 4:08 PM.
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    • bostonerimus
    • By bostonerimus 10th Jul 17, 4:25 PM
    • 633 Posts
    • 328 Thanks
    bostonerimus
    • #7
    • 10th Jul 17, 4:25 PM
    • #7
    • 10th Jul 17, 4:25 PM
    Couldn't she apply to pay the 5 years in arrears she needs to get to 35 and pay the voluntary Class II rate if she was working overseas?
    Last edited by bostonerimus; 10-07-2017 at 4:28 PM.
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