Horrified - Part NI years don't count!

Ellabelle

I have just discovered that part NI years don't count towards a state pension!

I have worked in multiple, often concurrent, short term contracts (some of up to 7 months, some for just a couple of weeks, and everything in between), almost my whole life.

Some of this work is paid as self employment (but have not paid class twos due to 'low earnings' for the self employed part of my work), and some through PAYE.

I thought I had been building up lots of 'part years' that would be added together, but I have just found out that part years are useless (even though I have paid various amounts of NI contributions!).

Is there anything to be done?!

(I'm 28, so there is still time to sort this out, but as i'll be requiring 35 'full years' for full state pension entitlement, i'll have to get my skates on!)

RickyB2000

A full year costs around £600 minus whatever you already paid in. Usually you can 'back pay' up to 6 years. So find out how much extra you need to pay for each year you can still pay for and make the payment. You can get a view of this on the the government pension website.

They should also send you letters when you only do a part year offering you the chance to top up. Have you not been getting these? Do they have your most current address?

xylophone

Your state retirement age is likely to be 67 plus so you still have time!

https://www.gov.uk/new-state-pension/overview

Try here for your record to date https://www.gov.uk/check-state-pension

http://taxaid.org.uk/guides/information/issues-for-employees/employee/national-insurance-contributions


https://www.gov.uk/voluntary-national-insurance-contributions/why-pay-voluntary-contributions

saver861

Its down to the amount earned in a year. Currently I think it is about £5800 or thereabouts ... so once that amount has been earned then it qualifies for a full year of pension. It does not matter how long it takes to earn it ... e.g. it could be 3 months, 6 months or 9 months. The magic figure is the £5800 or whatever the actual amount is each year.

Tigsteroonie

Get a copy of your record to date. It will detail exactly which years can be "paid up" and how much that will cost for each particular part-paid year. We had to do so recently for Marley; it took them about four weeks to cash the cheque but bish-bash-bosh all sorted now.

eta. Marley never received any annual letters advising him of the shortfall.

xylophone

Its down to the amount earned in a year. Currently I think it is about £5800 or thereabouts ... so once that amount has been earned then it qualifies for a full year of pension. It does not matter how long it takes to earn it ... e.g. it could be 3 months, 6 months or 9 months. The magic figure is the £5800 or whatever the actual amount is each year.

Not exactly.
Have a look at - see http://taxaid.org.uk/guides/information/issues-for-employees/employee/national-insurance-contributions

Ellabelle

Thank you very much for the help everyone!

I have used the link for the checking state pension webpage, that you suggested xylophone, and I am pleased to report that I have actually got 9 years! [I must have gone over the thresholds at a lot of my employments ]

I have three missing years (within the past 6) - two that they would would want over £300 to be made up (so can't afford that), but one of the years only needs £26.40 extra!

Great! Once I have paid that, i'll already get the minimum of £44.40 (for 10 years contributions), and obviously that can be built on as I go through the years.

Very relieved!

mgdavid

You should request a copy of your NI contributions/credits statement
https://www.gov.uk/check-national-insurance-record
it should show part years and tell you how much to pay to turn them into full years.

Ellabelle

No letters from them about this, though. Perhaps they have stopped sending those out. They have most definitely always had my up-to-date addresses. I have made sure of it.

Ellabelle

Ellabelle wrote: »

Great! Once I have paid that, i'll already get the minimum of £44.40 (for 10 years contributions), and obviously that can be built on as I go through the years.

That's if they haven't abolished the state pension by then, but that's a whole other discussion!

saver861

xylophone wrote: »

Not exactly.
Have a look at - see http://taxaid.org.uk/guides/information/issues-for-employees/employee/national-insurance-contributions

Yes very valid point. There are varying ways of getting there, the key point being that its possible to exceed the £5800 but from different employments - but, each employment may be lower than the minimum required to pay NI.

So, yeah, definitely work checking which applies to each individuals circumstances.