State Pension - Buying Added Years

Munzee

Thanks. At the time no thought was given to pension entitlement, it was so far in the future. Hindsight is a wonderful thing! We'll just have to see if it's worth buying 5 years to get the minimum state pension or just put it down to experience.

molerat

It will most definitely be worth it. Currently he is entitled to £0. Purchase 5 years for £3700 ish and he will be entitled to £47.50 per week, £2470 per year. Do the maths, won't take long to be in profit

Munzee

Phoned the Future Pensions Centre and had a very informative chat with a very helpful operator. Turns out we can purchase up to 12 years - from 2006/07 onwards, and all count towards pension (I thought it was just 6 you could go back) Doing the sums now but think it will be worth it.

NormanH

Everyone seems quite helpful my question is how do i post a question myself? Thanks in advance. I've googled, searched the net, can't find anywhere that says "New thread" anybody advise please? Sorry for jumping on your post

MallyGirl

There should be a New Thread button visible. For me it is Blue, on the left of the screen and is level with the Page 1,2,3 function

newatc

Munzee wrote: »

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?

Your question has been answered by others but can I also suggest that you look at the idea of starting a personal pension or SIPP. If he has only small income he will be able to get tax relief putting money in (put in 2880 annually get 720 tax added) and no tax when taking it out.

Munzee

Thanks newatc, but the DIY approach isn't for us.

xylophone

Thanks newatc, but the DIY approach isn't for us.

It could be very simple.

https://forums.moneysavingexpert.com/discussion/5580163/paying-2880-into-pension-when-retired&highlight=2880+pension

Munzee

Is it really that simple?

xylophone

Well, if your husband's only income is going to be a very modest state pension, then he could (for example), pay £2880 into a Hargreaves Lansdown SIPP this side of the tax year, pay in another £2880 on the other side of the tax year, wait for the tax relief to be added, (£7320), take the 25% PCLS and draw down the balance on a regular monthly basis up to end March 2020, pay in another £2880 on 6 April 2020, wait for the tax relief, take the 25% PCLS, draw down the balance monthly and so on until he is 75.