How to buy extra years NI

simonineaston

Hi folks, can anyone tell me, in simple terms, how I go about buying missing NI years? I understand that it costs £700 for each extra year assuming there are none missing from the last 6 years - I need three more to qualify for the maximum state pension and I have decided to look hard at retiring early and so wouldn't have the option of buying the necessary three more years by staying in paid employment up until 'spa'.

Marcon

See https://www.gov.uk/voluntary-national-insurance-contributions/deadlines

p00hsticks

First of all - I presume that you know you need three more years from having got an individual pension forecast, not from the generic '35 years for a state pension' - as the latter is only true if you started your working life when the new rules were already in place.

https://www.gov.uk/check-state-pension

You don't say what years you want to pay for.

If you are missing years, years from April 016 onwards will definitely add to your pension - years before that may not depending on the details in your forecast. f you put more details people can advise.

https://www.gov.uk/pay-voluntary-class-3-national-insurance

You cn pay for past years in one go either by phoning HMRC up (on 0300 200 3500) and telling them what years you want to pay for - they'll give you a reference you can quote when making a faster payment from online banking. Or you can write a cheque with a letter including your NI number saying what years you wish to pay for

Alternatively, for current/future years, you can set up a direct debit to pay monthly by contacting them as per the above link

simonineaston

Excellent link & advice, folks - cheers!

Freeman24reverseFpenny

Another question on this, which I think I know the disappointing answer to, but thought I would check just in case.

I've been contracted out of the state pension scheme for the vast majority of my working life, so when I reached 65 last year, my state pension was well below the new £164 level. I did get an additional £4.70 per week from the two years 2016/17 and 2017/18, for which we had to pay the contracted in rate - 17/18 being the last full contribution year before I was 65. But my question is whether it would be possible to pay additional NI contributions to convert the non contracted years 13/14, 14/15 & 15/16 to full years - or is this only possible when you haven't paid anything to begin with?

Those three years, as I'm aware you can only pay for up to 6 years previous to current date.

Thanks in advance.

molerat

Your 2016 starting calculation would have been the higher of x/30ths old basic + S2P (a calculation that already included a COD) or x/35ths new - COPE. There is no such thing as a contracted out year, a year is simply a year, and you cannot change the COPE or S2P amounts. The only way to alter that calculation is by adding unfilled years which is constrained by the 30 and 35 year limits depending on your individual situation.

cfw1994

We have just bought 4 years for my wife - HMRC were very helpful, the transfer was a simple online one, & she will call back in 2 weeks to check they have got it all.

p00hsticks wrote: »

First of all - I presume that you know you need three more years from having got an individual pension forecast, not from the generic '35 years for a state pension' - as the latter is only true if you started your working life when the new rules were already in place.

https://www.gov.uk/check-state-pension

Must admit I am a little confused around that: I thought it was 35, but I have 36 & it tells me I need 3 more for the full pension!

Freeman24reverseFpenny

molerat wrote: »

Your 2016 starting calculation would have been the higher of x/30ths old basic + S2P (a calculation that already included a COD) or x/35ths new - COPE. There is no such thing as a contracted out year, a year is simply a year, and you cannot change the COPE or S2P amounts. The only way to alter that calculation is by adding unfilled years which is constrained by the 30 and 35 year limits depending on your individual situation.

Right - so in basic terms, that'll be a no then. Thanks.

walter_wobblebottom

cfw1994 wrote: »

We have just bought 4 years for my wife - HMRC were very helpful, the transfer was a simple online one, & she will call back in 2 weeks to check they have got it all.



Must admit I am a little confused around that: I thought it was 35, but I have 36 & it tells me I need 3 more for the full pension!

I've got 45 years and still need 1 more for FSP

hyubh

walter_wobblebottom wrote: »

I've got 45 years and still need 1 more for FSP

Which presumably puts you in a better position than your doppelganger, Walter Wiggletop, who has had 45 years contracted-in and continues to pay NI for no further state pension benefit while you (thanks to the new state pension system) earn a bit more than you would have done...?

Dazed_and_confused

35 years does not apply to those under the transitional rules.