Should I buy extra state pension years?

JudgeDekker

molerat said:

£175.20 - £129.77 = £45.43 / £5 = 9.  You need 9 more years to get within 38 pence of the full amount, 38 pence is all your 10th £800 would buy you.  Looking at your gaps from 2006 onwards are there any cheap part filled years ?

That's a good shout, there are some part-filled years, actually. Thanks. I'm not sure it's exactly £5 a week extra for each year though, is it?

Dazed_and_C0nfused

It is for post 2016 years (£175.20 ÷ 35) but may be different for pre 2016.

Someone will no doubt confirm one way or the other.

Silvertabby

JudgeDekker said:

molerat said:

£175.20 - £129.77 = £45.43 / £5 = 9.  You need 9 more years to get within 38 pence of the full amount, 38 pence is all your 10th £800 would buy you.  Looking at your gaps from 2006 onwards are there any cheap part filled years ?

That's a good shout, there are some part-filled years, actually. Thanks. I'm not sure it's exactly £5 a week extra for each year though, is it?

£5 now, but will increase in April (and every April thereafter).  Making it even more of a bargain.

SpanishBlue

I thought there was a time limit on how many years back you could buy (5 or 6 years?).

Are you saying you can buy years from as far as back as 2006?

molerat

SpanishBlue said:

I thought there was a time limit on how many years back you could buy (5 or 6 years?).

Are you saying you can buy years from as far as back as 2006?

Yes, the transitional arrangements allowed 10 years back from 2016 to ensure that everyone could achieve the minimum 10 years required. Years 2006-07 to 2016-17 are all treated as 2016-17 for the 2 & 6 year rules so increased in price from April 2019 and are no longer available from April 2023. But just because they are available does not necessarily mean they will add value to the pension.

molerat

JudgeDekker said:

molerat said:

£175.20 - £129.77 = £45.43 / £5 = 9.  You need 9 more years to get within 38 pence of the full amount, 38 pence is all your 10th £800 would buy you.  Looking at your gaps from 2006 onwards are there any cheap part filled years ?

That's a good shout, there are some part-filled years, actually. Thanks. I'm not sure it's exactly £5 a week extra for each year though, is it?

A post 2016 year will get you £5.0057142 per year - they do not add an actual amount per year, they add £175.20/ 35 * x years.

A pre 2016 year will either buy that amount if your starting amount is under the new system or £4.475 (£134.25/30) if under the old but the starting amount will be recalculated if purchasing pre 2016 years and it could switch you from the old to the new.

Those amounts and prices paid will increase from 6th April.