Only 10 years of NIC's?

sparky0138

On the MSE website under the question How many years can I buy? it says those retiring after 6 April 2016 can buy up to 10 years' contributions. It also says Already at the maximum number of years? If you try to buy further years that would take you over the maximum number allowed, you'll normally be prevented from doing so by the Government.

I've never seen this mentioned before and I can't find it on the government website. Has anyone had this happen? And do the years have to be fully paid by voluntary contributions in order to be classed as one of the ten years? Looking at my mum's record, she has 12 years where she has either paid full years or had a mixture of voluntary contributions along with credits and/or through paid employment. She also has one more year she can make full before retiring. Can anyone provide any clarity on this please?

Linton

At the moment you can buy voluntary NI for any missing years back to 2006/2007.  This option will be substantially reduced at the start of the 2023/2024 tax year. However depending on the circumstances paying for years prior to 2015/2016 may not benefit you.  You can pay for missing pre State Pension Age years after you have become eligible for the State Pension.  

Paying voluntary NI to get extra SP is astonishingly advantageous.  You recover the costs in just 3-4 years of extra SP with the benefits continuing for the rest of your life.

The first step is to get a State Pension Forecast - https://www.gov.uk/check-state-pension which will tell you the amount of SP you have accrued and what is required to increase it.

See https://www.gov.uk/voluntary-national-insurance-contributions
and https://www.pensionsadvisoryservice.org.uk/about-pensions/the-state-pension/voluntary-ni-contributions

xylophone

Ask your mother to obtain the forecast - then come back here with exactly what it says.

molerat

The article is a guide to what you can actually do, not what government documents state as they do not put it in simple terms but the article should really say up to 10 pre 2016 years.  As above, get a SP forecast and post the details up here and someone will help.  Purchasing pre 2016 voluntary contributions needs to be treated with extreme caution as, despite what the mse article says, you will be allowed to buy worthless years.

sparky0138

Thanks. She finished work in April due to ill health but won't receive a state pension until October 2021. She plans to make a voluntary contribution for 2020-2021 and will be two years short. Did you need the details for each individual year? If so, please let me know. This is what it says on her forecast.

You have:

• 32 years of full contributions
• 1 year to contribute before 5 April 2021
• 16 years when you did not contribute enough

You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2020
£160.18
Forecast if you contribute until 5 April 2021
£165.19

£165.19 is the most you can get

After State Pension age, 28 October 2021, you no longer pay National Insurance contributions.

molerat

On the face of it she cannot get any more than she currently has other than by buying this current year,  looking for any errors in her NI history is the only option to get more. Is she showing any not full years 2006-2016 ?  I suspect not as it shows the maximum possible as current amount + 1 year.  It looks like the not full years will be from way back - can she account for the reasons for the unfilled years ?  Which years was she in receipt of child benefit and are they full ? Did she at any time pay the married women's small stamp ?

sparky0138

Thanks. 2006-2020 are all full years. The unfilled years are from when she either wasn't working or didn't earn enough. Sadly in 2005-2006 she earned 24 weeks of credits being a carer for my grandad who had terminal cancer but for some reason she didn't make up the rest with a voluntary contribution and I believe it's too late for that year now.

She received full years for child benefit credits for 1979-1980 to 1992-1993 (inclusive) - would that be correct? I was born in March 1979 and would have just turned 12 in April 1992. She was definitely in receipt of child benefit until I was 16 though. 

She can't remember ever paying married women's stamp.

molerat

Too late to fill anything pre 2006. Pre 2010 HRP, which was later converted to NI credits, was up until 16. MrsM has credits from 78-79, when HRP was introduced, up until 96-97, the last full year before No2 was 16.  I remember MrsM receiving a letter around 2010 showing any gaps in her record and being invited to fill them, some at preferential rates which we did - I can find the letter acknowledging the payments but can't find the actual letter.

The married women's stamp would have precluded her from receiving child benefit credits so all good there.

sparky0138

molerat said:

Too late to fill anything pre 2006. Pre 2010 HRP, which was later converted to NI credits, was up until 16. MrsM has credits from 78-79, when HRP was introduced, up until 96-97, the last full year before No2 was 16.  I remember MrsM receiving a letter around 2010 showing any gaps in her record and being invited to fill them, some at preferential rates which we did - I can find the letter acknowledging the payments but can't find the actual letter.

The married women's stamp would have precluded her from receiving child benefit credits so all good there.

Thanks, molerat. Are you saying she should have been credited for the years until I was 16 then? I've just checked again and 1993-1994 was a full year but only through paid employment of £69.38 and a voluntary payment of 4 weeks and 1994-1995 had paid employment of £3 but as she made no voluntary payments it was not a full year. 1994-1995 was the last full tax year before I turned 16 so should it have been credited?

molerat

Yes so most certainly worth querying with them.  There have been many cases of NI credits not being allocated correctly.

sparky0138

That sounds hopeful. I'll let my mum know and get her to query it with them. Thanks!