Should OH pay Voluntary NI Contributions

Beeworried

After some help please. Two questions really.

OH has not worked since July 2013 and claimed Contribution based JSA until Jan 14. He decided not to sign on to receive NI credits when the JSA ran out as he has health problems and found it a struggle to meet the rules.

He reached 60 in Sept 2014 and started to receive a small pension from a final salary scheme he had paid into. He will reach SPA in Sept 2020.

Question 1
He sent away for a state pension forecast which has just arrived. He has 44 qualifying years of contributions and taking into account his contracted out years will get a estimated New State Pension of just over £130 per week on NI record up to tax year ending 5 April 2014.

So the question is would it be a good idea to pay voluntary contributions for the rest of 2013/14, 2014/15 & 2015/16 tax years?

His health has deteriorated considerably since Jan 2014 and there is no way he could sign on for JSA NI credits.

Question 2
He has no earned income, from reading on the forum would it be a good idea for him to invest in a SIPP?

Sorry if these are silly questions. If you need anymore information I will be happy to supply what I can.

BW

molerat

Buying extra years before 2016 will be of no benefit as he has a "full house" at the moment. From 2016 he will be able to add to the current amount to bring it up to the new full pension, around 4 years of contributions will be required.

kidmugsy

The new rules on "inheriting" pensions, plus the new flexibility advantages, would probably make contributing to a SIPP (or stakeholder pension, or personal pension) a good idea.

As for NI contributions: I hope I'm not being too blunt, but is it wise to spend money on more state pension when he is in poor health? I suppose it's a matter of balancing the cost against the number of years for which he can hope to receive it.

I hope his health recovers. Best wishes.

Beeworried

Thanks for your replies.

Kidmugsy: Perhaps this is something I don't really want to think about at the moment. His life expectancy is not great but I live in hope.