State Single Teir Pension and making back payments

roytom

My record shows I have 37 qualifying years, therefore I’m over the maximum requirement of 35 years.

But many years NIC payments were on the Opted Out basis and therefore contribute less to the final calculation of my STPS pension payments.

I’m still making contributions and have a few more years left till I reach my State Pension Retirement Age.

I’ve been asked to pay for some years, which currently don’t qualify as contributing years, for 2006-07 and 2007-08. This will make these two years as qualifying pension payment years. So as things stand I would have 39 years.

But what would be the point? I was previously advised that topping up years *before* the STPS started when you already have the maximum number of years of State Pension payments would not increase the State Pension received.

In other words making fully qualifying historic payments of NIC would have no benefit as these years don’t overwrite Opted Out years.

As a side issue what about the fully qualifying years I’ve been making payments for *since* the STPS started? Are these doing anything for my final State Pension?

Thanks

molerat

Paying up pre 2016 gaps when you have in excess of 35 pre 2016 years would add no benefit and be a waste of money. Any post 2016 years will add £4.45 to your pension per year contributed until you reach the £155.65 maximum.

xylophone

I’ve been asked to pay

Your record indicates that you could choose to pay?

If you already have enough contributions for a full basic state pension as at 6/4/16, there is no point in paying pre 2016 years.

http://www.thisismoney.co.uk/money/pensions/article-3627480/Can-pay-extra-NI-state-pension-155-65-week.html

Dazed_and_confused

Any post 2016 years will add £4.45 to your pension per year contributed until you reach the £155.65 maximum.

The new state pension amount will be £164.35 from April 2018 so each post April 2016 year is effectively worth £4.70/week.