Missed national insurance payments

sharronej

Hi there,
Can anyone give me some advice?  I have recently found out that my self employed 53 yr old husband only has 7 years class 2 national insurance paid.  He has 14 years left to work which takes him to 21 years but according to the gov website we can only buy 6 years back at £795 per year giving us a trial of £4770.  My question is whether or not this is worth doing as he still won't get a full state pension, he has a private pension but it won't be worth much at all.
Thank you for your kind help.

eskbanker

Buying missing years is generally worth it, in the sense that each such year generates about an extra £5 per week paid out, thereby paying back the investment in about three years.

molerat

He can pay back as far as 2006-07.  If he was self employed he will be able to pay class 2 which is considerably less than the £795 class 3.  Which years are showing as gaps ?

sharronej

molerat said:

He can pay back as far as 2006-07.  If he was self employed he will be able to pay class 2 which is considerably less than the £795 class 3.  Which years are showing as gaps ?

Every single year from 1990 - 1991 and then from 1985 to 1989 🙄

sharronej

When I logged on his account and clicked on each year the £795 was the amount shown, I was quite shocked as I thought class 2 was around £3 a week but this worked out around the £15 mark.  How would you suggest we proceed?
Thank you.

eskbanker

sharronej said:

molerat said:

He can pay back as far as 2006-07.  If he was self employed he will be able to pay class 2 which is considerably less than the £795 class 3.  Which years are showing as gaps ?

Every single year from 1990 - 1991 and then from 1985 to 1989 🙄

Surely if he's only paid 7 full years there must be more gaps than this?

sharronej said:

When I logged on his account and clicked on each year the £795 was the amount shown, I was quite shocked as I thought class 2 was around £3 a week but this worked out around the £15 mark.

Class 2 is £3.05 per week, the higher figure is for class 3.

molerat

A bit confused - any pre 2006 years cannot be topped up and will not show a payable amount with a statement "It's too late to pay for this year.You can only usually pay for the last 6 years". 2006-07 to 2016-17 are all considered the same timescale wise.  The statement only quotes class 3 rates but he will be able to pay class 2 if self employed at the time.

sharronej

Eskbanker - He left school in 1982 and did a Y.T.S (if you are old enough to know what that is 😂). He has full years for 82/ 83/84/90/91/2000 and 2001 with 30 years missing in total but when I looked online it said he needed 35 years paid which was where my figures came from (in theory he has 14 more years to work).

sharronej

Molerat, 2006 would be just in the nick of time providing he pays the next 14 years in full.  This has all been a bit of a shock to be honest as all this time he has had an accountant - clearly not a very good one!

molerat

OK, so he has nothing post 2006-07 so those will be available at £3.05  - £158.60 per year - 18-19 & 19-20 will be slightly less.  Contact the FPC and they will talk him through it. https://www.gov.uk/future-pension-centre

sharronej

Thank you both so much!