Contracted Out NI payments

So_long_Marianne

Hi,
Hope someone can help as I’m a little confused! I am 56 and have recently retired from the NHS and taken my pension. I was in the 1995 pension scheme. I am concerned as I have just realised that I have previously been contracted out of NI contributions and so may not receive a full state pension at 67. I have checked my NI contributions on-line and it says I have 34 years of full contributions and 11 more years to contribute. My pension forecast states that I will receive £164.35 a week. I heard that it is possible to make a one off payment of about £700 to bridge the gap from making reduced NI contributions. Is this correct and is it worthwhile me doing this? If so how do I do it?
Thanks

molerat

https://www.gov.uk/pay-voluntary-class-3-national-insurance
2018-19 costs £761.80
2019-20 will cost £780.00
The amount increases with CPI each year.
Each year purchased will, at 2018-19 rates, add £4.70 to your pension so takes under 4 years to get back after basic rate tax.



More important than years is how much is your currently accrued amount - usually the second figure on the forecast ?

So_long_Marianne

Thanks for the reply Currently accrued amount is £144.43 a week

Tom99

At £144.43 you could top up by 4 years to take you up to £163.21 but does the £144.43 take into account your 2018/19 NHS NI?

So_long_Marianne

No it doesn’t but I’m still working 2 days a week for the NHS whilst I’m at uni retraining. I’m planning on hopefully working past 67 will this affect the decision on whether to pay top up payments?

molerat

If you are earning over £116 per week then you will be receiving class 1 NI credits and over £162 you will be paying NI so no need to pay.

So_long_Marianne

Thanks so much for the advice - greatly appreciated