Making up NIC year payments

Toodlepip123

Hello MSE-ers

Just a very quick question - I recently requested a pension forecast and found out that during my university years, I didn't pay enough NIC to makes these years valid for inclusion in my total.

I'm 29, have about 6 years paid up I think, and am a HRT. Are these worth paying? What benefit do I have in paying them?

One of them is around £250 which is the one I was most thinking about paying as I can afford it. The others are around £350 which I could pay but don't want to "waste" money I could otherwise save. If I pay these, does it mean I will not need to pay NIC when I'm older?

Thanks for any help, clarification or links!

PS: I am currently paying into a stakeholder pension with employer contribs. Should this affect my desicion?

PPS: not sure if this belongs in the pensions forum - if a lovely guide happens to be around feel free to move

seven-day-weekend

Hello there.

NI Contributions count towards your State Pension and certain State Benefits.

You will need 30 years' worth to get a full State Pension.

As you are only 29, you will not be able to draw your State Pension until you are 68. You have six years' worth already. Therefore you have another 39 years to pay the 24 years required. You will have to pay NI for as long as you are earning enough to pay them, even if this takes you over the thirty years.

I wouldn't bother paying the shortfall personally if I were in your position..

Toodlepip123

Hi seven-day-weekend,

Thank you for your response. I looked into the 30 days thing a bit more and it seems that it *might* come into play in 2010/2011 - do you think this is sure or just an empty promise?

Also, a friend suggested that once I've paid for my total years NI, then I wouldn't have that contribution taken out of my pay anymore. However, they are over 60 and say that they stopped paying it at 60. It's a bit confusing, pat of me thinks that they are incorrect but then they are usually good with these things. I can't find any info on this at all.

Your help is much appreciated!

CLAPTON

the 30 year rule become effective from april 2010.... no might about it.

CLAPTON

ps... also you pay NI whenever you work (currently if you earn over £105 per week) until you reach state pension age ..currently 60 for women and 65 for men... the 30 year rule is irrelevant I'm afraid.

Toodlepip123

Ah o, thanks so much Clapton for clarifying!