Back paying lost NI years?

janbeno

I have recently signed up to the Gateway in order to see if I qualify for a pension as my work record has been erratic. Can someone check and see if my calculations /assumptions are correct?
I am 63 in July and qualify for my pension July 2021. [ I am 1 of the WASPI women :mad:] I am not working at present and I probably won't be . I don't claim any benefits.

It shows I am entitled to £103.31 as of April 2017. However it could be increased to £122.09 . I presume this is if I pay the years up to 2021 when I retire?

There is also the total of £154.96 as the most I can increase to.

The missing years are from 2012-2017. These total £3357.55, but there are also 2006-2008 a total of £821.50.

I was under the impression that you could only back pay 6 years if this is the case would I have to pay the 06-08 contributions ? It does say the shortfall can be made up to 2023,but may increase after 2019?

If I paid all the back dated amounts that show in my account forecast [including the 06-08 ones] it would total £4179.05, plus I would have to pay the next 4 years as well I reckoned approx £3000, so a total of £7219 ish I divided that by the extra £51.65 which equates to £2479.20 per annum so that means if I live long enough I should break even in just under 3 years after retirement?

I hope whoever reads this understands my working out. I would be grateful for any input.

Thanks

molerat

Class 3 is very good value and, as you have said, pays back in around 3 years or so. There is a special dispensation allowing buying back to 2006 so that everyone can get 10 years, the minimum to get anything, at the introduction of the 2016 pension. The prices stay at the historical price until April 2019 then will increase to the current year price until 2023 when they will no longer be available to buy.


Importantly how many years does it show you as having and is there any COPE amount shown ?



The 3 figures quoted are for what you have now, what you can get going forward and the maximum you can achieve going forward and going back.


Looking at the 2 numbers you can buy a maximum of 11 (£154.96 - £103.31= £51.65 / £4.70 =11) years to reach the highest figure so 2016-17-18-19-20-21 = 5 plus 6 from before 2016 which seems to be as you have stated.

jools1985

It used to be the case that you could only pay back the last 6 years, however there is currently an agreement that years can be 'bought back' as far back as 2006. This came in before the latest pension reform which increased the number of qualifying years you had to have for pension purposes from 30 to a minimum of 35 to obtain a full pension.

You don't have to pay as far back as 2006 but you have the option to do so if you want to. The weekly voluntary contribution rates for 2006 - 2012 are frozen at the rates they were during those years. This 'freeze' will be lifted in April 2019 and the years will become payable at the current rate for each week.

You may be able to claim a National Insurance credit if you look after grandchildren or other children of family members? This is called a 'Specified Adult and Carers Credit'. Well worth looking into if you do help out with any childcare.

janbeno

Thanks for your replies. I don't have any COPE figures as I never contracted out. I cashed in a triviality pension a couple of years ago and this would nearly pay the amounts outstanding.

If I don't pay the 06-08 amounts the final figure will obviously be less than the £154.96 as stated?

molerat

janbeno wrote: »

Thanks for your replies. I don't have any COPE figures as I never contracted out. I cashed in a triviality pension a couple of years ago and this would nearly pay the amounts outstanding.

If I don't pay the 06-08 amounts the final figure will obviously be less than the £154.96 as stated?

You will get £4.70 per week for each year purchased irrespective of which one it is. If you can't afford them all then pick the cheapest years first and get the pre 2017 ones paid before April.


One quick thought - have you been looking after grandchildren whilst the parent is at work since 2011 at all ?

janbeno

No unfortunately I haven't any grandchildren. I was actually surprised to see the amount i'm entitled to. I think given I have the triviality payment from a paid up pension it would be worth paying back the deficit as the reward is quite big.

Thank you all for taking the time and trouble to answer my question.:T

Tom99

[FONT=Verdana, sans-serif]The cheapest way will be to pay the number of years you need starting with 2006.[/FONT]
[FONT=Verdana, sans-serif]2006 to 2009 = £689[/FONT]
[FONT=Verdana, sans-serif]2010 = £626.60[/FONT]
[FONT=Verdana, sans-serif]2011 = £655.20[/FONT]
[FONT=Verdana, sans-serif]2012 = £689[/FONT]
[FONT=Verdana, sans-serif]2013 = £704.60[/FONT]
[FONT=Verdana, sans-serif]And so on ….[/FONT]
[FONT=Verdana, sans-serif]2017-18 is £741 and 2018-19 a bit more.[/FONT]

janbeno

The cheapest way will be to pay the number of years you need starting with 2006.
2006 to 2009 = £689
2010 = £626.60
2011 = £655.20
2012 = £689
2013 = £704.60
And so on !!!8230;.
2017-18 is £741 and 2018-19 a bit more.


My years show :

06-07 £689
07-08 £132.50

12-13 £463.75
13-14 £704.60
14-15 £722.80
15-16 £733.20
16-17 £733.20


I worked out about an £11 increase per year for the next 4 years?

molerat

17-18 is £741.00, 18-19 is £761.80. 07-08 and 12-13 are part filled years so are the first to buy.

drumtochty

Janbeno


For 2018 2019 only as Class 2 NI contributions are no longer available after April 2019.


Buy yourself a duplicate book.


Go on to HMRC this month and register as self emloyed, this can be anything like dog walking, hand knitting, house sitting, ebay trading, ironing services etc.


You can earn £1,000 free of tax this tax year.


Do a little work lets say £100 worth this year and give your clients invoices from a duplicate book.
In April 2019 do your self assesment tax return.
Add the self employed page.
In the self employed page tick you want to pay Class 2 NI.
At the end of the return it will advise you to pay 52 x the weekly Class 2 contribution
52 x £2.95 - £153.40
Pay it straight away.


A good saving for you, as they say "every little helps".

The_Book-keeper

drumtochty wrote: »

Janbeno


For 2018 2019 only as Class 2 NI contributions are no longer available after April 2019.


Buy yourself a duplicate book.


Go on to HMRC this month and register as self emloyed, this can be anything like dog walking, hand knitting, house sitting, ebay trading, ironing services etc.


You can earn £1,000 free of tax this tax year.


Do a little work lets say £100 worth this year and give your clients invoices from a duplicate book.
In April 2019 do your self assesment tax return.
Add the self employed page.
In the self employed page tick you want to pay Class 2 NI.
At the end of the return it will advise you to pay 52 x the weekly Class 2 contribution
52 x £2.95 - £153.40
Pay it straight away.


A good saving for you, as they say "every little helps".

I'm really impressed with this idea - has anyone actually done it?

Thanks