Buying Class 3 NI

fly-catchers

Is it best to buy a full year in one go or spread it over in DD payments? I left employment in late 2020. And my 21/22 statement said I had two more years to build up to get a full pension. I am intending to buy just one year as the second would only give me another 42p! I assume I should go for the year that has just finished and would be my first missing year since I started employment in the mid 70’s. Though contracted out for most of that time till 2016/17. Will phone Future Pension Centre in due course.

Silvertabby

I'm sure someone will correct me if I'm wrong, but I think you can only pay for the current year by DD and that previous years have to be paid in one lump sum.

I had 4 previous years to pay, which I did in 2 lump sums of (roughly) £1.5K each.  In my case, my 4th year gives me £4.80 per week so close enough to the full amount to be worth doing.

Secret2ndAccount

If he left in 2020, then Apr '21 - Apr '22 is a previous year, no?
OP, if you stopped in early 2020, then Apr '20 - Apr '21 would be the cheapest year to buy, as the past two years are for sale at their original prices. After two years, they go up to the current year's price. So you can save a bit of inflation.
If you stopped later in 2020 then you might have a partial year of contribs, which could be even cheaper to top up to a full year.
You can figure some of this out online:  https://www.gov.uk/check-national-insurance-record
It might not be right up to date, since 21-22 only ended a few weeks ago, but the answer about the partial 20-21 should be there.

fly-catchers

My last full year was 20/21 as I left my job in December 2020. So 21/22 will be the first year without any Class 1 NI payments. They haven't updated the National Insurance page yet. I do remember getting NI credits when I first left school but hadn't got a job at that point. But assume that was paid as I was signed on at the Labour Exchange (as it was called in those days!) So will go for a lump sum this year. Or could I delay it until next year as I won't reach 66 till January 2024?

p00hsticks

Silvertabby said:

I'm sure someone will correct me if I'm wrong, but I think you can only pay for the current year by DD and that previous years have to be paid in one lump sum.

Yes, that's my understanding too.