Confused by National Insurance contributions

wallofbeans

Hi All,

I've just done my tax return and had a look at my National Insurance contributions while I was there. It sent me into a bit of panic. Although further investigation makes me think it might be fine. So now I'm just confused.

It seems I've made 17 years of full contributions. And have 23 years left to contribute. 11 years where I didn't contribute enough and 5 of those that I can add to.

And then when looking at my 'state pension forecast' it says it's at £164.35.

But then says I need to continue to contribute and gives a figure of £79.27 per week, which sounds like a lot.

Can anyone advise on where I am at here and what is the best thing to do? 4 of the 5 years I can add to say they need over £700 but one says just £300.. would paying that now help me at all?

Linton

£164.35/week is the maximum you can get. £79.27 would appear to be the amount you have accrued so far - 17/35 X 164.35=79.8, so near enough.


Do you plan to work for the next 23 years? If so there is no point in paying extra NI now.

wallofbeans

Linton wrote: »

£164.35/week is the maximum you can get. £79.27 would appear to be the amount you have accrued so far - 17/35 X 164.35=79.8, so near enough.

Do you plan to work for the next 23 years? If so there is no point in paying extra NI now.

That makes a bit more sense now, thank you!

And yes, I guess so. And I suppose if I stopped work for any reason I can just top up the NI contributions for each year I miss up to the 35 needed.

I also don't need 23 years of contributions, only 18 to hit 35 so does that mean I can stop paying NI in 18 years as adding extra wont make any difference?

Spreadsheetman

wallofbeans wrote: »

That makes a bit more sense now, thank you!

And yes, I guess so. And I suppose if I stopped work for any reason I can just top up the NI contributions for each year I miss up to the 35 needed.

I also don't need 23 years of contributions, only 18 to hit 35 so does that mean I can stop paying NI in 18 years as adding extra wont make any difference?

No, NI pays for a lot more than just pensions...

Anonymous101

wallofbeans wrote: »

That makes a bit more sense now, thank you!

And yes, I guess so. And I suppose if I stopped work for any reason I can just top up the NI contributions for each year I miss up to the 35 needed.

I also don't need 23 years of contributions, only 18 to hit 35 so does that mean I can stop paying NI in 18 years as adding extra wont make any difference?

Unfortunately not.
It does mean that your pension is "secure" though so if for any reason you didn't pay sufficient NI. Either you were ill or out of work or just retired early. You have already paid in sufficient NI to get the full pension.