Guide discussion: Voluntary national insurance contributions

nigelbb

Tergat said:

nigelbb said:

To be eligible to pay Class 2 voluntary National Insurance contributions you must have worked & paid NI contributions for the three years immediately before you leave the UK. Full details in the HMRC leaflet NI38 'Social Security abroad' https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/947544/NI38_12_20.pdf

Yeah I read that leaflet and it's not prescriptive as to how much NI contributions.... I suspect I did 3 years but at low amounts. Will give the pensions centre a shout. Thanks all for the help!

You need to have worked & contributed for the three years prior to moving abroad then immediately be employed or self-employed in your new country to be eligible to pay Class 2. If you are not eligible to pay Class 2 you will be able to pay Class 3.

Cockerman

I receive a reduced state pension so contacted the Pension Service for advice. Told that I should pay voluntary NI to fill the 2 out of my 40+ years contributions that were incomplete. This I did back in May. No change to my pension so I have contacted the Pension Service another 3 times for an explanation to now be told that my reduced pension has nothing to do with the 2 years NI contributions that were short and that it is down to me being contracted out or SERPS at some point. So my voluntary NI contribution was money down the drain. Warning: Beware the Pension Service advice. 

Dazed_and_C0nfused

Cockerman said:

I receive a reduced state pension so contacted the Pension Service for advice. Told that I should pay voluntary NI to fill the 2 out of my 40+ years contributions that were incomplete. This I did back in May. No change to my pension so I have contacted the Pension Service another 3 times for an explanation to now be told that my reduced pension has nothing to do with the 2 years NI contributions that were short and that it is down to me being contracted out or SERPS at some point. So my voluntary NI contribution was money down the drain. Warning: Beware the Pension Service advice. 

Future Pension Centre is the usual recommendation for people in your situation as they have a very good reputation.

Have you contacted them?

https://www.gov.uk/future-pension-centre

p00hsticks

Dazed_and_C0nfused said:

Cockerman said:

I receive a reduced state pension so contacted the Pension Service for advice. Told that I should pay voluntary NI to fill the 2 out of my 40+ years contributions that were incomplete. This I did back in May. No change to my pension so I have contacted the Pension Service another 3 times for an explanation to now be told that my reduced pension has nothing to do with the 2 years NI contributions that were short and that it is down to me being contracted out or SERPS at some point. So my voluntary NI contribution was money down the drain. Warning: Beware the Pension Service advice. 

Future Pension Centre is the usual recommendation for people in your situation as they have a very good reputation.

Have you contacted them?

https://www.gov.uk/future-pension-centre

I'm not sure the Future Pension Centre will be able to help in this case as the OP says they are already claiming their pension.

The explanation that the OP has received isn't necessarily correct - the OP having been contracted out may explain why they ar receving a lower pension, but it doesn't preclude being able to increase it by making voluntary contributions to top up years that aren't full.

I beleive that it is taking some time for any effect to work through the system if you are already passed State Pension age, so the OP may yet see a benefit.

@Cockerman - I believe that if you can are currently receiving less than £185.15 a week, you  reached SPA after April 2016 and the years you topped up are after April 2016 but before the year you reached SPA then you should see an increase, but it may take some time to work through.... 

Terron

When I first checked I had 36 years of contributions but was short of the full new pension by about half a years worth.
Since I was made redundant my main income has been from letting properties. There are special NI rules for that. Since I was not dabbling, nor engaged in a trade, profession or vocation I was able to pay voluntarily class 2 contributions, which I did for one year so now I am entitled to the full pension.
It took a lot of work to find the rules as they changed in 2015 but a lot of sites had not been updated.

Cockerman

p00hsticks said:

Dazed_and_C0nfused said:

Cockerman said:

I receive a reduced state pension so contacted the Pension Service for advice. Told that I should pay voluntary NI to fill the 2 out of my 40+ years contributions that were incomplete. This I did back in May. No change to my pension so I have contacted the Pension Service another 3 times for an explanation to now be told that my reduced pension has nothing to do with the 2 years NI contributions that were short and that it is down to me being contracted out or SERPS at some point. So my voluntary NI contribution was money down the drain. Warning: Beware the Pension Service advice. 

Future Pension Centre is the usual recommendation for people in your situation as they have a very good reputation.

Have you contacted them?

I'm not sure the Future Pension Centre will be able to help in this case as the OP says they are already claiming their pension.

The explanation that the OP has received isn't necessarily correct - the OP having been contracted out may explain why they ar receving a lower pension, but it doesn't preclude being able to increase it by making voluntary contributions to top up years that aren't full.

I beleive that it is taking some time for any effect to work through the system if you are already passed State Pension age, so the OP may yet see a benefit.

@Cockerman - I believe that if you can are currently receiving less than £185.15 a week, you  reached SPA after April 2016 and the years you topped up are after April 2016 but before the year you reached SPA then you should see an increase, but it may take some time to work through.... 

Receiving £173.63 SP, reached SPA after April 2016, topped up NI for 2012/13 and 2015/16.

The Pension Service say the reduction is due to me being contracted out back sometime in the past which means I will have a protected rights  pension pot somewhere funded by DHSS from my NI contributions.

Great news but I've still thrown £1270 down the drain by paying voluntary NI when I needn't have. 

Dazed_and_C0nfused

Cockerman said:

p00hsticks said:

Dazed_and_C0nfused said:

Cockerman said:

I receive a reduced state pension so contacted the Pension Service for advice. Told that I should pay voluntary NI to fill the 2 out of my 40+ years contributions that were incomplete. This I did back in May. No change to my pension so I have contacted the Pension Service another 3 times for an explanation to now be told that my reduced pension has nothing to do with the 2 years NI contributions that were short and that it is down to me being contracted out or SERPS at some point. So my voluntary NI contribution was money down the drain. Warning: Beware the Pension Service advice. 

Future Pension Centre is the usual recommendation for people in your situation as they have a very good reputation.

Have you contacted them?

I'm not sure the Future Pension Centre will be able to help in this case as the OP says they are already claiming their pension.

The explanation that the OP has received isn't necessarily correct - the OP having been contracted out may explain why they ar receving a lower pension, but it doesn't preclude being able to increase it by making voluntary contributions to top up years that aren't full.

I beleive that it is taking some time for any effect to work through the system if you are already passed State Pension age, so the OP may yet see a benefit.

@Cockerman - I believe that if you can are currently receiving less than £185.15 a week, you  reached SPA after April 2016 and the years you topped up are after April 2016 but before the year you reached SPA then you should see an increase, but it may take some time to work through.... 

Receiving £173.63 SP, reached SPA after April 2016, topped up NI for 2012/13 and 2015/16.

The Pension Service say the reduction is due to me being contracted out back sometime in the past which means I will have a protected rights  pension pot somewhere funded by DHSS from my NI contributions.

Great news but I've still thrown £1270 down the drain by paying voluntary NI when I needn't have. 

Do you have any post 2016 years you could add (ignoring the tax year you reached State Pension age)?

p00hsticks

Cockerman said:

p00hsticks said:

Dazed_and_C0nfused said:

Cockerman said:

I receive a reduced state pension so contacted the Pension Service for advice. Told that I should pay voluntary NI to fill the 2 out of my 40+ years contributions that were incomplete. This I did back in May. No change to my pension so I have contacted the Pension Service another 3 times for an explanation to now be told that my reduced pension has nothing to do with the 2 years NI contributions that were short and that it is down to me being contracted out or SERPS at some point. So my voluntary NI contribution was money down the drain. Warning: Beware the Pension Service advice. 

Future Pension Centre is the usual recommendation for people in your situation as they have a very good reputation.

Have you contacted them?

I'm not sure the Future Pension Centre will be able to help in this case as the OP says they are already claiming their pension.

The explanation that the OP has received isn't necessarily correct - the OP having been contracted out may explain why they ar receving a lower pension, but it doesn't preclude being able to increase it by making voluntary contributions to top up years that aren't full.

I beleive that it is taking some time for any effect to work through the system if you are already passed State Pension age, so the OP may yet see a benefit.

@Cockerman - I believe that if you can are currently receiving less than £185.15 a week, you  reached SPA after April 2016 and the years you topped up are after April 2016 but before the year you reached SPA then you should see an increase, but it may take some time to work through.... 

Receiving £173.63 SP, reached SPA after April 2016, topped up NI for 2012/13 and 2015/16.

The Pension Service say the reduction is due to me being contracted out back sometime in the past which means I will have a protected rights  pension pot somewhere funded by DHSS from my NI contributions.

Great news but I've still thrown £1270 down the drain by paying voluntary NI when I needn't have. 

Ouch! Yes I suspect that that money was wasted - if the missing years had been after the introduction of the New State Pension in April 2016 then topping up would have increased your pension, but as you already had 35 years prior to 2016 then topping up pre-2016 years wouldn't make any difference.     If you have evidence that the Pension Service wrongly advised you that topping up those years would increase your pension then I think you have grounds for complaint....  

nigelbb

p00hsticks said:

Dazed_and_C0nfused said:

Cockerman said:

I receive a reduced state pension so contacted the Pension Service for advice. Told that I should pay voluntary NI to fill the 2 out of my 40+ years contributions that were incomplete. This I did back in May. No change to my pension so I have contacted the Pension Service another 3 times for an explanation to now be told that my reduced pension has nothing to do with the 2 years NI contributions that were short and that it is down to me being contracted out or SERPS at some point. So my voluntary NI contribution was money down the drain. Warning: Beware the Pension Service advice. 

Future Pension Centre is the usual recommendation for people in your situation as they have a very good reputation.

Have you contacted them?

https://www.gov.uk/future-pension-centre

I'm not sure the Future Pension Centre will be able to help in this case as the OP says they are already claiming their pension.

I spoke to the Future Pensions Centre after I started receiving my state pension. They were very helpful even though it was only to confirm that I couldn't increase my pension any more they did explain the 2016 calculation tome.

nigelbb

p00hsticks said:

Cockerman said:

p00hsticks said:

Dazed_and_C0nfused said:

Cockerman said:

I receive a reduced state pension so contacted the Pension Service for advice. Told that I should pay voluntary NI to fill the 2 out of my 40+ years contributions that were incomplete. This I did back in May. No change to my pension so I have contacted the Pension Service another 3 times for an explanation to now be told that my reduced pension has nothing to do with the 2 years NI contributions that were short and that it is down to me being contracted out or SERPS at some point. So my voluntary NI contribution was money down the drain. Warning: Beware the Pension Service advice. 

Future Pension Centre is the usual recommendation for people in your situation as they have a very good reputation.

Have you contacted them?

I'm not sure the Future Pension Centre will be able to help in this case as the OP says they are already claiming their pension.

The explanation that the OP has received isn't necessarily correct - the OP having been contracted out may explain why they ar receving a lower pension, but it doesn't preclude being able to increase it by making voluntary contributions to top up years that aren't full.

I beleive that it is taking some time for any effect to work through the system if you are already passed State Pension age, so the OP may yet see a benefit.

@Cockerman - I believe that if you can are currently receiving less than £185.15 a week, you  reached SPA after April 2016 and the years you topped up are after April 2016 but before the year you reached SPA then you should see an increase, but it may take some time to work through.... 

Receiving £173.63 SP, reached SPA after April 2016, topped up NI for 2012/13 and 2015/16.

The Pension Service say the reduction is due to me being contracted out back sometime in the past which means I will have a protected rights  pension pot somewhere funded by DHSS from my NI contributions.

Great news but I've still thrown £1270 down the drain by paying voluntary NI when I needn't have. 

Ouch! Yes I suspect that that money was wasted - if the missing years had been after the introduction of the New State Pension in April 2016 then topping up would have increased your pension, but as you already had 35 years prior to 2016 then topping up pre-2016 years wouldn't make any difference.     If you have evidence that the Pension Service wrongly advised you that topping up those years would increase your pension then I think you have grounds for complaint....  

It doesn't help the OP but the advice here is always to only purchase added years after speaking to the Future Pensions Centre to confirm exactly which years should be purchased.