Guide discussion: Voluntary national insurance contributions

Tiz_world

Hi jem16,

I was able to buy the 5 years 2006/7 to 2010/11, and the 3 years 2020/21 to 2022/23.

 

jem16

Tiz_world said:

Hi jem16,

I was able to buy the 5 years 2006/7 to 2010/11, and the 3 years 2020/21 to 2022/23.

 

So as molerat said, one pre 2016 year would add value but the rest need to be post 2016. Or all 6 post 2016. 

watervolume

Hi,

Could someone pls help me determine which years I should be buying? I've been living abroad since 2006 so I am waiting for a response from my CF83 submission to see whether I can pay at the class 2 rate.

Current forecast is £128.54 a week

Most I can get is £221.20 a week

Number of full NI years 15-16 and earlier=18

Number of full NI years 16-17 and later=0

Tax year I reach state retirement=2040/2041

My COPE estimate is £17.42 a week

Years available to buy:

2023 to 2024 £907.40

2022 to 2023 £824.20

2021 to 2022 £800.80

2020 to 2021 £795.60

2019 to 2020 £824.20

2018 to 2019 £824.20

2017 to 2018 £824.20

2016 to 2017 £824.20

2010 to 2011 £824.20

2009 to 2010 £824.20

2008 to 2009 £824.20

2007 to 2008 £824.20

Thanks in advance.

molerat

You need 15 years to reach the full pension with 16 years left to get there.  You have no cheap / part filled years so it makes no real difference which years you buy.  You could safely buy as many pre 2016 years as are available but any more than 3 would increase the total years needed to 16 due to them paying only £5.65 v £6.32 for a post 2016 year.  There is no real advantage buying back years as you have enough time going forward especially if you can get class 2 as the price difference is minimal.

frayedknot

I rang the pension service to check if buying a couple of years ( pre 2016) would increase my pension ( I'm about £15 short of the £221.20).

They said because I was only a few days over 66 and they hadn't paid me anything yet that  I wasn't on their system.They gave me another number to ring (0800 731 7898) and they told me they would send out a letter in SIX WEEKS. Is this normal, all the people on this forum talk about being able to get guidance over the phone. 

molerat

Once you are beyond pension age it is all in writing. TBH 6 weeks is optimistic I am afraid.

If you want to post up a few anonymous details it will probably be pretty easy to work out

Current weekly £££.pp amount.
Number of full NI years 15-16 and earlier
Number of full NI years 16-17 and later
Any COPE amount ?.  Were you in a contracted-out pension scheme ?
Years which show not full and prices

frayedknot

Thanks Molerat.

Current pension £206.94 can be increased to £221.20

2016-7 to 2023-4 all full 8 years

2006-7 to 2015-6 all full except;

6/7. Cost to fill £332.85
7/8.    £158.50
8/9     £824.20
9/10.  £380.40 and
15/16 £63.40

24 pre 2016 years + 8

32 years. No cope

molerat

You need 3 more years to reach the max.  2 years will take you to £218.24 with the 3rd adding the final £2.96.  So the 3 cheapest is the way to go.  But as your pension is below the pension credit threshold do you have other pensions, savings or spouse income that will make you ineligible as if you are eligible increasing the pension would leave you worse off ?

frayedknot

Thanks molerat. Unfortunately my wife is well below state pension age so I can't claim pension credit even though she doesn't currently work..

 It seems a very strange situation where having made more contributions leaves you worse off! Still at least I don't have to endure the 243 question marathon to claim pc!

moneyworrier2021

Afternoon.

Im really trying to start taking a look at pensions and savings etc. I've found my NI history and I have full years for every year since I started working in 2003 except 2 years where I worked abroad.

Going by these screenshots, it's not worth filling these as after after 14 years of contributions, I'll hit the maximum state pension anyway?