Voluntary national insurance contributions

Fluffyqueen34

I’m 57 retired from NHS.I checked my ni record.It says i have 40 years contributions.Year 16/17 no contributions.I can make up the shortfall by paying £733.20 by 5th April 2023 this May increase after 5th April 2019.Need advise please.Thanks in advance.

Linton

One would need to see the actual numbers to give a proper answer.

However, I guess that despite you having 40 years NI your state pension will be below the standard rate of £159.55/week because of the many years you have spent contracted-out. If that is the case you can increase your state pension by £159.55/35=£4.56/week (about £230/year) by buying an NI year at a cost of £723 between stopping working and reaching state pension age. You can continue to do this each year until you reach the £159.55 (inflation adjusted) figure.

By comparing the cost of an NI year with the amount of extra pension gained/year you will see that you break even after about 3 years. After then it is all gain. This is a remarkably good deal.

Fluffyqueen34

Thank you for replying my forecast is £129.15 a week.

Tom99

Fluffyqueen34 wrote: »

Thank you for replying my forecast is £129.15 a week.

Then if you don't work in the future you will be able to top up to £159 pw at about £740 for each year from 2016. As said above well worth doing at less than 4x years purchase, whereas if you tried to buy that pension in the open market it would cost about 20x or 30x.

p00hsticks

If by any chance you are providing childcare for grandchildren whilst their parents go to work, another way of getting NI credits is to apply for childcare credits

https://www.gov.uk/government/publications/national-insurance-credits-for-adults-who-care-for-a-child-under-12-fact-sheet