Voluntary NI back dating?

Londonlisa12

On my state pension forecast it states I can make up the shortfall in credits for tax years 06/07 through to 12/13.Each years is minus a few credits so the year does not count. I have until April 2023 to do this.

I thought you could only pay back up to 6 years and when I look at 05/06 it states this..

Edit just found that they allow 2006 - 2016 to be paid up an until 2023

Thank You.

calcotti

Londonlisa12 wrote: »

Edit just found that they allow 2006 - 2016 to be paid up an until 2023 .

Can’t remember the details but I think this was a relaxation of the normal rules in connection with the raising of state pension age.

Tom99

You need to understand your pension forecast and whether the years 2006/7 to 2015/16 will add to your state pension or not.
I could pay for 2011 to 2016 but they would not have added a jot to my state pension.
If you post exactly what your pension forecast says I am sure someone will be able to point you in the right direction.

Londonlisa12

Tom99,I have never been contracted out and understand I need to get up to 35 years NI credit for full SP.
It's just a matter of working out the best years to pay to get up to 35.
If you look into it there are many complexes into choosing the correct years and the time at which you pay.
Eg you would be stupid paying this year's voluntary class 3 at present if you are a few years off retirement age since you can pay at the same rate in 2 1/2 .years time.Also you can pay up to 6 years ago at current rates so if your investments get more than the NI increase then you should hang on since who knows you may not be in a position to receive SP then or be in a condition where NI is paid for you,so a no brainer in waiting.

p00hsticks

Londonlisa12 wrote: »

Tom99,I have never been contracted out and understand I need to get up to 35 years NI credit for full SP.
It's just a matter of working out the best years to pay to get up to 35.
If you look into it there are many complexes into choosing the correct years and the time at which you pay.

If you've aways been 'contracted in' it may be less than 35 years in total needed. And if you already have 30 years credit for the period prior to April 2016 there's no point in buying any more before this date.

You're right in saying it's very complex - this is a good guide to working through your options
https://www.royallondon.com/media/good-with-your-money-guides/topping-up-your-state-pension/

Tom99

p00hsticks wrote: »

If you've aways been 'contracted in' it may be less than 35 years in total needed. And if you already have 30 years credit for the period prior to April 2016 there's no point in buying any more before this date.

You're right in saying it's very complex - this is a good guide to working through your options
https://www.royallondon.com/media/good-with-your-money-guides/topping-up-your-state-pension/

You will need 35yrs if you want the full new state pension of £168 odd.
But as said its very complex.

p00hsticks

Tom99 wrote: »

You will need 35yrs if you want the full new state pension of £168 odd.

Not necessarily - if the person had accumulated a lot of additonal pension (SERPS/S2P) under the old rules they could be at the maximum £168 before they got to 35 years

calcotti

p00hsticks wrote: »

Not necessarily - if the person had accumulated a lot of additonal pension (SERPS/S2P) under the old rules they could be at the maximum £168 before they got to 35 years

Indeed, they could be over the £168 in which case they can't increase it. However would have to take into account that the starting amount under old rules will now be fixed whereas the SP is likely to rise each year so if there are a number of years to go the SP could rise above the old rules starting rate at which point it would be worth paying for additional years.