Should I pay NI contributions for missing years?

jamesd

Use care with that Class 3A option. It's poor value compared to deferring the state pension for those anywhere close to state pension age. It gradually tarts to look better for older people when the reduced years of payment from deferring eventually become the main factor. Fortunately it's pretty easy just to compare the extra pension from deferring with the extra pension from buying and work out which is best.

greenglide

The £1.71 is the total of GRAD (aka GRB), SERPS and S2P. All of these were different flavours of Earnings Related Additional Pension.

It was possible for someone contracted out to earn a small amount of AP from SERPS until 1997 because of the complex rules of the AP being offset by the GMP / COD. From 1997 onwards this was simplified and nobody who was contracted out could get any AP which was sort of the original intention anyway.

The £1.71 is AP, it doesnt really matter which scheme it came from. It used to be broken down in the pension forecast but it isnt any more.

It is currently fully broken down in the entitlement notice issued when your came is processed, on the first payment advice and (I think) on the annual uprating notification. Anyone who gets nSP will not see this as these amounts are simply added together when the Starting Amount is calculated.