Is it worth buying 1yr Vol N.I. contributions

SallySunshine

My O.H will receive his State Pension in 2015 at 65 , his last pension forecast was in 2008 and he had contributed to 29yrs and only needed 30 under the new rules.

He was missing 2006-2007 and it would have cost him £392.60. Now it will probably cost double that.


I've been trying to find out how much that 1 missing year would cost and would it be worth paying. I know he will have up to 2013 to pay and wonder if it's worth hanging on until then to see what changes the goverment might make in that time.

I can't think why he didn't pay it at the time:(

I'm sure I've seen the figure somewhere on HMRC website but trawled through today and can't find it. and also tried Martins Calculator, (this doesn't seem to be working?


Anyone know offhand.

le_loup

Usually missing year payments break-even at around 4 years. The cost of buying always goes up each year. The value increases every year.
Try the Pensions Advisory Service. The current chart is here:
http://www.pensionsadvisoryservice.org.uk/media/502926/class%203%20nics%202011-12.pdf

SallySunshine

Thanks for that le loup,
looks like he will need to pay back £655.

Just need to persuade him now that it will be worth it in the long run.

McKneff

Have you got a forecast as to how much he will receive wth 29 years and how much he will receive with 30 years. You could then sort of work out how long it would take to recoup the £655

Has he asked if he has any SP2 to add to his state pension.

How come he only has 29 years, even if he was on JSA he still should have been credited with NI 's

sleepless_saver

SallySunshine wrote: »

I've been trying to find out how much that 1 missing year would cost and would it be worth paying.

It's not worth paying if your joint income is going to be so low that you're entitled to pension credit.

le_loup

SallySunshine wrote: »

Thanks for that le loup,
looks like he will need to pay back £655.

And for that he would get £3 odd a week which gives a break-even of around 4 years, as I said.
All he has to do is stay alive for more than that four years!

bigfreddiel

SallySunshine wrote: »

My O.H will receive his State Pension in 2015 at 65 , his last pension forecast was in 2008 and he had contributed to 29yrs and only needed 30 under the new rules.

your oh must have 33 yrs contributions now and by my reckoning in 2015 he will have 36yrs contributions - 6 more than required

so sit back enjoy working for 3 more years - don't buy any added years - enjoy full sp in 2015 - may even be this flat rate £140/week by then

fj

molerat

Get a pension forecast now and every year, it will tell you how many years you have and if any missed years how much they will cost https://secure.thepensionservice.gov.uk/statepensionforecast/

McKneff

bigfreddiel wrote: »

your oh must have 33 yrs contributions now and by my reckoning in 2015 he will have 36yrs contributions - 6 more than required

so sit back enjoy working for 3 more years - don't buy any added years - enjoy full sp in 2015 - may even be this flat rate £140/week by then

fj

I got the impression that the OPs OH would have 29 years conts.
when he actually got to pension age, 2015 thats what the forecast would have meant surely.

OP would you please clarify

jamesd

SallySunshine wrote: »

My O.H will receive his State Pension in 2015 at 65 , his last pension forecast was in 2008 and he had contributed to 29yrs and only needed 30 under the new rules.

If he had 29 there's little reason to buy more immediately when it's 2015 until he can get the money. If he's working now he may be getting additional years from that work and in that case he may already have reached 30 years.

Yes, there's always a chance that the rules will change before it is time to pay.

He should phone the Future Pensions Centre to check his situation and be sure that all years that should have been counted are counted and that he doesn't qualify for any discounts. Best to get an update State Pension Forecast before doing that.

SallySunshine

Thanks for the replies, he is retired but with no taxable income/pension yet.


I've registered tonight for an on-line forecast, but was curious to know what 1 yr would cost and if it was worth paying the amount stated earlier.

I'm sorry if I gave the impression that he would be in employment until 2013.