When should I pay my voluntary national insurance?

blxdong

Apologies if this is not the correct forum...

I play poker for a living, and as such have to pay my own national insurance if I wish to receive the state pension. I'm 28 and currently have 4 qualifying years out of the required 30 years to get full basic state pension. Assuming my retirement age is 65, this means I have 37 years left in which to pay 26.

I'm financially capable of paying it now, paying missed years now retroactively, or delaying paying it even further.

Given this information, when should I pay?

Thanks:j

molerat

Your state pension age is 68
and
you need (from April 2016) 35 years contributions for the max pension of £148 at current rates.

agarnett

Speaking from experience at almost retirement age, I would say that unless you are supremely confident that you have hit he mother lode with your poker and that you can build completely independent retirement (and maybe health and care plans too - who knows what a mess that will be in 30 years time) it may be worth taking a small hit and buying all the qualifying years you can get while DWP still allow you to do so.

Luckily I currently have enough years to qualify for a state pension, but not enough contracted-in years for a full flat rate state pension which is the new idea starting April 2016. Currently I expect only to get £113 pw or the inflation-increased equivalent when I reach 66 (my SRA), or maybe £120.

The government has messed at least twice in my memory with the number of qualifying years. I believe it was 35, and 30 and now for the 2016 changes it is 35 again. WHo is to say it wont be 50 or 60 in 30 years time? (Wonders of medical science and all that!)

I had the chance to top up my NI contributions in at least two years which now sit irrevocably for ever on my NI record as "unqualifying" years or some such. Looking back, the amounts I was offered (for a set period) to stump up to buy back qualification on those two years were piffling.

Don't cut off your nose to spite your face. As you well know, you have to be in it to win it, so why not pay the ante and be sure

blxdong

Yeah I'm unfortunately not in position for independent retirement... maybe in the future if I'm lucky but that's not a gamble I want to take.

I guess I don't have anything to lose by making up years now, as you raise a good point about not knowing what changes they will make to the number of years required. I also get the previous 2 tax years at no extra cost so that's cool I guess.