Voluntary NICs

melena

One of you clever people will be able to answer this... I need to buy a couple of years of VNICs before I take my pension, my question is about timing. What I've read seems to say I'd just have to buy before I hit 66, but presumably it would confuse everyone if I did so on the day before my birthday, so is there a cut off date? I am wondering whether perhaps any purchase has to be made in the tax year before the one in which you reach pension age, though for anyone born on April 6th that too would presumably cause problems if they argued that April 5th was in the previous tax year and therefore OK. I suppose there is a delay between claiming your pension and the first payment, so perhaps that is long enough to take account of even a very late payment. Sorry, I've probably made this more complicated than it needed to be. Thanks for any advice. 

Linton

You do not gain anything from buying NI for the tax year during which you reach State Pension Age.  However if you are buying for a previous year you can do so up to 6 years afterwards, you reaching State Pension Age does not matter.

You can also pay for any gaps in the years 2006/2007-2015/2016 until April 2023.  However this may or may not do you any good.  You will need to get advice.

sevenhills

I have a couple of missing NI years, but overall I have enough to give me a full pension.

Have you done a pension forecast?

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

melena

Linton said:

You do not gain anything from buying NI for the tax year during which you reach State Pension Age.  However if you are buying for a previous year you can do so up to 6 years afterwards, you reaching State Pension Age does not matter.

You can also pay for any gaps in the years 2006/2007-2015/2016 until April 2023.  However this may or may not do you any good.  You will need to get advice.

Are you saying that I could buy previous years' NICs  AFTER taking my pension?  "you reaching State Pension Age does not matter".

melena

sevenhills said:

I have a couple of missing NI years, but overall I have enough to give me a full pension.

Have you done a pension forecast?

Yes, thanks. I only have 33 years worth.

Dazed_and_C0nfused

You do know that you are under transitional rules and having 35 years isn't what counts for you?
It may be that 2 years is what you need to reach the standard new State Pension but that would be coincidence that it is a total of 35 years.

3card

i would suggest you get online and check your state pension forecast as a starting point as your NI record will show you what you owe and when it needs to be paid by.
Once you have a copy of this forecast read it and understand it and then ring the future pensions centre and check and queries with them to actually confirm that what you are looking at is correct.
I did just this earlier this week and managed to pave a way forward with regards to my wifes missing years

Good luck

melena

Dazed_and_C0nfused said:

You do know that you are under transitional rules and having 35 years isn't what counts for you?
It may be that 2 years is what you need to reach the standard new State Pension but that would be coincidence that it is a total of 35 years.

Actually 35 years will get me just less than the standard new State Pension, it's a matter of debate as to whether it makes sense to buy the 36th year's NICs for a partial year's increase in pension. 
I seem to have found the answer to my follow up question to Linton, Are you saying that I could buy previous years' NICs  AFTER taking my pension? Which? says, "Those who’ve reached state pension age and want to fill in gaps in their National Insurance record are able to via Class 3 contributions."

melena

3card said:

i would suggest you get online and check your state pension forecast as a starting point as your NI record will show you what you owe and when it needs to be paid by.
Once you have a copy of this forecast read it and understand it and then ring the future pensions centre and check and queries with them to actually confirm that what you are looking at is correct.
I did just this earlier this week and managed to pave a way forward with regards to my wifes missing years

Good luck

Thank you. I've done most of that and know that I have to buy three more years' of NICs to get the standard full new pension, it's just a question of when I have to pay for the final year - the actual date of the payment, not how many years after the year I'm buying for. The website doesn't give that info. I asked via a form but didn't get an answer.

molerat

Yes you can pay after retirement but within 6 years of the end of the year being purchased, nothing special - just the normal 6 year rule.

But there is some debate as to when the payments become effective with a possibility that the increased pension only starts from the date of payment rather than backdated to retirement age.

The reason people questioned your got 33 need another 2  is because many new posters come on here stating that believing 35 gets them a full pension when they have not actually checked their forecast whereas you have done it correctly - although the number of years you have is irrelevant, it is purely the number of post 2016 years you need to reach £175.20 that counts.

melena

molerat said:

Yes. 

But there is some debate as to when the payments become effective with a possibility that the increased pension only starts from the date of payment rather than backdated to retirement age.

It wouldn't have crossed my mind that the pension increase might be backdated - that really would be wanting to have your cake and eat it! Then again, I didn't think it possible to buy more NICs after starting to take the pension, or even after passing pension age.
I'm not 100% sure what your "Yes" is answering...? Just the being able to buy after 66 I guess.
All I really want to do is to neither buy way too soon before I hit 66 nor leave it so late that I miss the chance to get a full pension from my 66th birthday.