paying National Insurance voluntary contributions and effect on pension

Milarky

Dazed_and_confused wrote: »

It is more complicated for earlier years. There have been threads on the pensions board from people who have paid voluntary contributions for earlier years and it had no effect on their forecast.

And there was silly I thinking "I'll be able to suss this out..."

calcotti

Dazed_and_confused wrote: »

Probably should have said only years after April 2016 are guaranteed to add 1/35th.

And I suppose that's not strictly true, if you get close to the maximum the final year might only buy you 1p/week!!

It is more complicated for earlier years. There have been threads on the pensions board from people who have paid voluntary contributions for earlier years and it had no effect on their forecast.

I think that applies to people whose starting point under old rules is higher than new pension and already have 30 years of contributions (the previous requirement after it dropped from 44)
https://www.thisismoney.co.uk/money/pensions/article-5470181/Savers-wasting-money-trying-boost-incomes.html

In case of OP with only 24 years I would expect any additional years to help. Years post 2016 may be more beneficial than years prior to 2016 but i’m Not clear about this.

xylophone

The calculation at 6/4/16

Old Rules

24/30 X £119.30 + (Additional State Pension - Deduction in respect of contracting out)

New Rules

(24/35 x £155.65) - COPE

Your starting amount was the higher of the two.


Was your starting amount based on the old or the new system?

Linton

Working out whether it is worthwhile paying pre-2016 NI years can be complex. For a definitive answer based on your specific circumstances contact the Future Pension Centre:https://www.gov.uk/future-pension-centre

molerat

With 24 years you could already be at the maximum so all your questions are too generalised without the exact figures to work from. As above the only ones who will give you a definitive answer is the FPC but with exact figures including post 2016 years held people on here will be able to give pretty spot on directions.

metrobus

I applied for my NI record twice 1st time 2 years ago and again 1 month ago.

I can make up incomplete years going back to 2006/07 and can do this anytime up and until 2023.

The payable rates for each missing part of the years have not gone up.

Why would I not wait until 2023 to make the payments!