State Pension - Buying Added Years

Munzee

My husband is approaching state pension age and only has 5 qualifying years NI. Can he buy 5 years class 3 to enable him to get the minimum state pension?

molerat

More than likely. Which years are currently full ?

Munzee

All are pre 1975

molerat

He should be able to purchase anything from 2006-07 onwards. His NI records will show how much each year will cost. The 2006-07 - 2016-17 years will be rising in price to £780 after April 5th.

Munzee

Great, thanks. Can he choose which years to buy and does it make any difference? Some are less than others. For example, 2010/11 is £626.60. 2009/10 is £698.00.

lisboa84

Has he ever worked abroad?
Then he could be eligible to purchase years at a lower rate.

Or, is he eligible to claim any credits?
https://www.gov.uk/national-insurance-credits

Munzee

lisboa84 - the answer to both is no

molerat

Munzee wrote: »

Great, thanks. Can he choose which years to buy and does it make any difference? Some are less than others. For example, 2010/11 is £626.60. 2009/10 is £689.00.

Yep, start with the cheapest. Do you mind sharing why he has such a poor record ?

Munzee

Thanks molerat, you're a star! (Sporadic self employment resulting in very small annual profits and unemployment followed by ill health for a number of years before receving a transplant. Never claimed benefits due to my high earnings. Has been a 'house husband' for the last 15 years)

Munzee

A bit worried now......could it be that during those years when he did a few weeks/months of self employment he should have paid Class 2 NIC, even though his profits were minimal? He never actually applied for exemption, though if he had, I'm sure he would have got it. All this was 20+ years ago as he hasn't worked at all since becoming ill. Are we in trouble?

Keep_pedalling

Munzee wrote: »

A bit worried now......could it be that during those years when he did a few weeks/months of self employment he should have paid Class 2 NIC, even though his profits were minimal? He never actually applied for exemption, though if he had, I'm sure he would have got it. All this was 20+ years ago as he hasn't worked at all since becoming ill. Are we in trouble?

You are not in trouble, but It would have been a good idea to have paid C2 NI during that time. If your profits were low the cost of doing so would have been minimal and would have given him those missing years.

Before paying vol class 3 to top up he should call the future pensions unit on 0800 0175 for advice on what his best options are.