Guide discussion: Voluntary national insurance contributions

Bricks

molerat said:

It's unlikely that message will change before they reconcile your records to calculate the pension.  If you need those years then you need to contact them to get them updated. Do you think you paid class 2 in those years? The option may still be open for some.

Thanks, it sounds like I'd need to contact them to find out. It's likely I didn't pay NI in those years. 

It's not the case that I definitely need those years - assuming they are all incomplete, the number of complete years I still need to collect is still smaller than the number of years I have left until I reach pension age. It just would be good to have a more complete picture of where I stand. It sounds like I should assume they are incomplete.

Skazman

Hi in Martin’s guide it states “ Note that you can't pay to increase your State Pension beyond the maximum of £221.20 a week, so if you're projected to get £200 a week or more, topping up is less good value for money.“
Why is this the case surely in most cases increasing to near the maximum is good value, especially if you are due to receive your State Pension soon?

molerat

Skazman said:

Hi in Martin’s guide it states “ Note that you can't pay to increase your State Pension beyond the maximum of £221.20 a week, so if you're projected to get £200 a week or more, topping up is less good value for money.“
Why is this the case surely in most cases increasing to near the maximum is good value, especially if you are due to receive your State Pension soon?

The guide was created in an earlier year so the pension was much closer to £200 back then, that £200 would now be around £215 so less than one year off the full amount.  MSE guides often do not get fully updated.

sleekitwan

I’ve been fairly ill throughout my working life - that’s my employers’ verdicts, not mine - to the extent it blocked me from getting jobs that were better for my health, one was withdrawn after the offer was initially made (ie I passed all tests, the interview panel, everything).  It results in a pretty chequered career, but I ploughed on, have no gripes, some have had it worse, some better.  But every time someone pontificates about National Insurance, and how great value it is to top it up, it’s borderline irrelevant/impossible for myself and many others.

Partial years, the ones I have, are few and they are almost entirely only a couple of months.  It seems you can pay completely empty, unpaid years too, but again it’s irrelevant.  At £800 per annum, merely to pay the ten years of 2006-2016, that’s an £8k ‘top-up’.

Never going to happen.  Maybe I could scrape £800 together, but the financial rectitude that would impose for the next year is awesome.  I have a much better idea…why doesn’t the system, simply add all the months together, of NI paid, then turn that into years?  There would only be a single partial year then, for anybody/everybody.  Be a lot simpler.

But wouldn’t solve this issue.  Listen, if you have a lovely set of parents/grandparents etc, and a lovely normal inheritance track record, this eight grand is a dawdle - I have friends in this exact position.  But a racist Will for example, is not against the law, in the UK or anywhere and if we just start with that, it will be seen how this is impossible advice to follow.  

I will finish with the most obvious of points - why not simply pay in more when you are able?  I asked of my employer the main position I had for seven years: ‘Can I pay more into the pension,as we’ve found my private pension now transferred is a pitiful sum?  (commission!)’   The answer was a week’s silence and a solid ‘No’.  I literally could do no more, having suggested right away the employer not even put in their contribution for this extra amount.

Oh, okay, how about this…the first career job i had, the employer wrote in the contract, contributing to their pension scheme was mandatory, a condition if employment, and it was deducted at source.  Then, if you leave within two years, they keep the contributions…this, is my experience, it’s not sweet, but it’s authentic.  There’s no fixing 4 or 5 decades of rogue and unbridled employer greed and blocking (for no reason except a bit more admin needed doing).  Take care all, Martin’s advice is often tremendously helpful.

MouldyOldDough

sleekitwan said:

I’ve been fairly ill throughout my working life - that’s my employers’ verdicts, not mine - to the extent it blocked me from getting jobs that were better for my health, one was withdrawn after the offer was initially made (ie I passed all tests, the interview panel, everything).  It results in a pretty chequered career, but I ploughed on, have no gripes, some have had it worse, some better.  But every time someone pontificates about National Insurance, and how great value it is to top it up, it’s borderline irrelevant/impossible for myself and many others.

Partial years, the ones I have, are few and they are almost entirely only a couple of months.  It seems you can pay completely empty, unpaid years too, but again it’s irrelevant.  At £800 per annum, merely to pay the ten years of 2006-2016, that’s an £8k ‘top-up’.

Never going to happen.  Maybe I could scrape £800 together, but the financial rectitude that would impose for the next year is awesome.  I have a much better idea…why doesn’t the system, simply add all the months together, of NI paid, then turn that into years?  There would only be a single partial year then, for anybody/everybody.  Be a lot simpler.

But wouldn’t solve this issue.  Listen, if you have a lovely set of parents/grandparents etc, and a lovely normal inheritance track record, this eight grand is a dawdle - I have friends in this exact position.  But a racist Will for example, is not against the law, in the UK or anywhere and if we just start with that, it will be seen how this is impossible advice to follow.  

I will finish with the most obvious of points - why not simply pay in more when you are able?  I asked of my employer the main position I had for seven years: ‘Can I pay more into the pension,as we’ve found my private pension now transferred is a pitiful sum?  (commission!)’   The answer was a week’s silence and a solid ‘No’.  I literally could do no more, having suggested right away the employer not even put in their contribution for this extra amount.

Oh, okay, how about this…the first career job i had, the employer wrote in the contract, contributing to their pension scheme was mandatory, a condition if employment, and it was deducted at source.  Then, if you leave within two years, they keep the contributions…this, is my experience, it’s not sweet, but it’s authentic.  There’s no fixing 4 or 5 decades of rogue and unbridled employer greed and blocking (for no reason except a bit more admin needed doing).  Take care all, Martin’s advice is often tremendously helpful.

I don't know your circumstances - but I am receiving NI credits from DWP - by way of :

https://www.gov.uk/national-insurance-credits/eligibility

You’re not on Employment and Support Allowance but you satisfy the conditions for it

I am getting credits for the next 5 years - until I am 67 !

molerat

Earn £123 in a week you get an NI credit

Unemployed and looking for work you get an NI credit

Too ill to work you get an NI credit

Staying at home looking after a child you get an NI credit

Staying at home caring for a sick adult you get an NI credit

There is little reason for anyone to not have a pretty good NI history these days

BB59KD

BB59KD said:

Phoned HMRC around 5pm last Thursday afternoon to discuss voluntary contributions in advance of reaching SPA July 2025. All done and dusted and armed with 18 digit reference number by 5.20pm. Very good service.
 The only problem was that part way through, an automated voice said "Thank you for calling - goodbye" and cut me off. This is a system fault apparently. Make sure the person you are speaking to takes a contact number at the beginning of your conversation so that they can call you back. The 18 digit reference number is valid until 5 April 2025.

Made voluntary NI payment amount via Internet banking monday 3 Feb 25, NI record and maximum State Pension amount updated by Friday 7 Feb 25.

margaretkb

I found all this very confusing but this site has helped!. I am 64 and have 44 years of NIC, but my record still has gaps so I was about to pay HMRC £824 to plug the gaps, when I discovered i would not actually benefit from this, as I was over the qualifying 35 years, meaning my forecast shows I would still receive a full pension despite the gaps.I hope I am correct!  What puzzles me, is what happens to that £824 HMRC would have taken from me (and many others I'm guessing) as it wasn't going towards my pension??

jem16

margaretkb said:

I found all this very confusing but this site has helped!. I am 64 and have 44 years of NIC, but my record still has gaps so I was about to pay HMRC £824 to plug the gaps, when I discovered i would not actually benefit from this, as I was over the qualifying 35 years, meaning my forecast shows I would still receive a full pension despite the gaps.I hope I am correct!  What puzzles me, is what happens to that £824 HMRC would have taken from me (and many others I'm guessing) as it wasn't going towards my pension??

The 35 years has no relevance to anyone with a pre 2016 NI Record so please don’t go on that. I had 47 years and still didn’t get a fullnew state pension because I was contracted out. 

What you need to go with is what your state pension forecast says - not just the big green box at the top but the details underneath. Does it say you have to contribute to reach your forecast or does it say this is the most you can get and you cannot improve your pension. 

HMRC would not take your payment unless you have clarified your position with the Future Pension Centre first. Or at least checked here and fully understand you position. 

molerat

You are mixing a few things up, 35 years is of no relevance to you whatsoever.  Your current pension is what you had at April 2016 in £££s plus what you have added to it since up to the max new pension amount.  As long as your forecast shows only one amount, not just in the big green box at the top but in the text below, you have reached that amount.  The text below the box clearly states if you need to add more to get to that green box amount.