State Pension Voluntary Purchase

tigerspill

Hi,

I know that I can but any missing years at wrung £750 per whole year.

If I work part of a year but net met then minimum NI payments to add the full year to my SP - can I pay for the part year I have missed to make it up to the full year?
Is the proportion based on the %age paid pro-rated to the £750 for the full year.

molerat

tigerspill wrote: »

Hi,

I know that I can but any missing years at wrung £750 per whole year.

If I work part of a year but net met then minimum NI payments to add the full year to my SP - can I pay for the part year I have missed to make it up to the full year?
Is the proportion based on the %age paid pro-rated to the £750 for the full year.

It is broken down into weeks. If you don't earn enough in the year to cover the 52 x LEL you will get the weeks in which you earned enough and the missing weeks will need buying at (currently) £14.25 each. Your pension forecast shows how much is required to make up the year.

badmemory

But you also need to know that adding more may not increase your state pension. With the emphasis on "may not". This is something you should check before paying out. It may increase it now but that addition maybe something that you will do anyway in your future working life. So basically more info! As molerat says look at your pension forecast - maybe you already have enough contributions for the new state pension & paying any more would just be a waste of money.

tigerspill

badmemory wrote: »

But you also need to know that adding more may not increase your state pension. With the emphasis on "may not". This is something you should check before paying out. It may increase it now but that addition maybe something that you will do anyway in your future working life. So basically more info! As molerat says look at your pension forecast - maybe you already have enough contributions for the new state pension & paying any more would just be a waste of money.

At the end of this FY, I will be one year short. I plan to stop work at the end of April, so was trying to understand what I might need to pay to top next year up. I thought it was based on amount I was paid rather than number of weeks.