The National Insurance Gravy Train

jerrysimon

I am in the same position. I have been on line and looked at how much I will get. Its around £125/per week with nearly 40 years of contributions. Whilst my latter payements of NI where very high (nearly £400/month) before I retired early this year, when I look back to the late 70s and 80s NI contributions these were very small.

Assuming I get to 66.5 years of age I consider myself a winner. A Type 1 diabetic since my late 20s, I have also benefitted greatly (again way beyond how much I have contributed) in terms of ongoing health care for the last 25+ years!

Of course I could contribute more by choice if I wish to increase my SP when I finally get it. I probably wont, instead I will pay another 3 years for my wife who will then get the full £159/week and with her small pension pay no tax

sIMON

I'm in a similar situation but with 47 years full contributions that make my SP projection £130 at 66. this no doubt is because of a work pension and contracting out of SERPS.
However Ive been told that you can buy NI top ups to cover the serps years so that you can achieve the Full state pension- or am I being ill advised?

molerat

sIMON wrote: »

I'm in a similar situation but with 47 years full contributions that make my SP projection £130 at 66. this no doubt is because of a work pension and contracting out of SERPS.
However Ive been told that you can buy NI top ups to cover the serps years so that you can achieve the Full state pension- or am I being ill advised?

You are correct. If you have less than the full £155.65 then you can increase that with post April 2016 credits either by working, some benefits or voluntary contributions.

A one off payment of £741 (for the current year) will give you £231.40 a year for the rest of your life so paying back in 3 to 5 years depending on your tax situation.

jerrysimon

Yep that is what I will do for my wife.

jamesd

sIMON wrote: »

I'm in a similar situation but with 47 years full contributions that make my SP projection £130 at 66. this no doubt is because of a work pension and contracting out of SERPS.
However Ive been told that you can buy NI top ups to cover the serps years so that you can achieve the Full state pension- or am I being ill advised?

Yes, but in your case only years starting from April 2016 will help because you already have the maximum number of beneficial years before that. So don't buy any years 2015 or earlier.