Guide discussion: Voluntary national insurance contributions

molerat

chels said:

molerat said:

chels said:

I'm looking to fill gaps in my NI contributions prior to 5 April 2023 to increase my pension close to maximum and hoping someone will be able to take a look at my records to check my understanding of what I need to do to achieve this or put me straight.  My plan is to pay contributions to fill gaps for years:  2021/22, 2020/21, 2006/07 plus 7 of the other years (I assume it doesn't matter which) to increase the pension amount to £181.71.

My records show:

You can get your State Pension on 15 March 2033
Your forecast is £181.71 a week, £790.11 a month, £9,481.37 a year
Estimate based on your National Insurance record up to 5 April 2022: £128.81 a week
Forecast if you contribute until 5 April 2032: £181.71 a week

You can improve your forecast You have shortfalls in your National Insurance record that you can fill and make count towards your State Pension.  The most you can increase your forecast to is: £185.15 a week.

You have 26 years of full contributions
10 years to contribute before 5 April 2032
15 years when you did not contribute enough

In the past you’ve been ‘contracted out’ of the additional State Pension
Your COPE estimate is £36.91 a week

2021 to 2022
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £800.80 by 5 April 2028

2020 to 2021
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £795.60 by 5 April 2027

2019 to 2020
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2026

2018 to 2019
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2025

2017 to 2018
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2024

2016 to 2017
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2015 to 2016
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2014 to 2015
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2013 to 2014
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2012 to 2013
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2011 to 2012
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2010 to 2011
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2009 to 2010
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2008 to 2009
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2006 to 2007
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £729.10 by 5 April 2023


Many thanks if you can help.

You need 11 years to get to the full £185.15, the 11th year giving you £3.44 so still worth it.  The option is yours as you only need 1 back year and none are particularly cheap, 2006-07 being the best option, but you don't have to buy any back years until before April 2028 when you would need to buy 21-22.  The only downside is the 10.1% increase in cost coming in April. 

Thanks for your response.

I understand I could make the figure up to £185.15 but I don't think I'll bother, I'm happy with £181.71.  I just wanted to check my understanding of what I need to do to achieve this is correct.  I want to do this in one hit, a 'once and done' approach then forget about it until pension becomes payable.  So what I'm planning to pay is correct to achieve my aim? 

If you want to do it now you need to be aware that pre 2016 years will only add £4.73 per year and you are limited to 4, you cannot exceed 30. Buying what you currently have available, 4 pre plus 6 post, will only take your pension to £179.47.  The other thing to be aware of is that you step in front of a bus then neither you or your family will see a penny of that money. It is like a reverse life insurance, you need to survive for it to pay out and the cost of that premium could be the higher price of paying later rather than sooner to increase the odds on receiving the payout.

[Deleted User]

Just a heads up for anyone contacting HMRC over VNICs before the April 5th transitional period deadline ( I finally got through after a 50 minute wait - not great when ringing from abroad ) the Computer Says No drone who finally answered says there's a 22-week delay before any letters are answered but that if they're received before the deadline you will still be able to pay.
22 weeks...
Unbelievable.

chels

molerat said:

chels said:

molerat said:

chels said:

I'm looking to fill gaps in my NI contributions prior to 5 April 2023 to increase my pension close to maximum and hoping someone will be able to take a look at my records to check my understanding of what I need to do to achieve this or put me straight.  My plan is to pay contributions to fill gaps for years:  2021/22, 2020/21, 2006/07 plus 7 of the other years (I assume it doesn't matter which) to increase the pension amount to £181.71.

My records show:

You can get your State Pension on 15 March 2033
Your forecast is £181.71 a week, £790.11 a month, £9,481.37 a year
Estimate based on your National Insurance record up to 5 April 2022: £128.81 a week
Forecast if you contribute until 5 April 2032: £181.71 a week

You can improve your forecast You have shortfalls in your National Insurance record that you can fill and make count towards your State Pension.  The most you can increase your forecast to is: £185.15 a week.

You have 26 years of full contributions
10 years to contribute before 5 April 2032
15 years when you did not contribute enough

In the past you’ve been ‘contracted out’ of the additional State Pension
Your COPE estimate is £36.91 a week

2021 to 2022
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £800.80 by 5 April 2028

2020 to 2021
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £795.60 by 5 April 2027

2019 to 2020
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2026

2018 to 2019
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2025

2017 to 2018
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2024

2016 to 2017
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2015 to 2016
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2014 to 2015
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2013 to 2014
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2012 to 2013
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2011 to 2012
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2010 to 2011
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2009 to 2010
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2008 to 2009
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £824.20 by 5 April 2023

2006 to 2007
Year is not full
You did not make any contributions this year
Pay a voluntary contribution of £729.10 by 5 April 2023


Many thanks if you can help.

You need 11 years to get to the full £185.15, the 11th year giving you £3.44 so still worth it.  The option is yours as you only need 1 back year and none are particularly cheap, 2006-07 being the best option, but you don't have to buy any back years until before April 2028 when you would need to buy 21-22.  The only downside is the 10.1% increase in cost coming in April. 

Thanks for your response.

I understand I could make the figure up to £185.15 but I don't think I'll bother, I'm happy with £181.71.  I just wanted to check my understanding of what I need to do to achieve this is correct.  I want to do this in one hit, a 'once and done' approach then forget about it until pension becomes payable.  So what I'm planning to pay is correct to achieve my aim? 

If you want to do it now you need to be aware that pre 2016 years will only add £4.73 per year and you are limited to 4, you cannot exceed 30. Buying what you currently have available, 4 pre plus 6 post, will only take your pension to £179.47.  The other thing to be aware of is that you step in front of a bus then neither you or your family will see a penny of that money. It is like a reverse life insurance, you need to survive for it to pay out and the cost of that premium could be the higher price of paying later rather than sooner to increase the odds on receiving the payout.

It was mainly this part I wasn't sure on. Right, so for me to pay in one hit now (by 5 April 2023) and forget about it, the maximum I can reach is £179.47 by paying for years 2021/22, 2020/21, 2019/20, 2018/19, 2017/18, 2016/17 (which adds £31.74 per week) plus years 2015/16, 2014/15, 2013/14 and 2006/07 (which adds £18.92 per week)?  £179.47 will do, it's close enough and much improved on the £128.81 figure if I do nothing.

If I don't make it to my pension age then so be it, I'm not going to worry about that as if I was to go suddenly I wouldn't have chance to wish I hadn't paid out the money to buy the contributions and if I had a longer illness but didn't make it to my pension then I'd have bigger things to think about than having wasted approx £8,000.  I can't control or cover every possible scenario so my preference is to buy now, knowing it's done and dusted is what gives me peace of mind, whatever happens after happens.

jem16

Deleted_User said:

Just a heads up for anyone contacting HMRC over VNICs before the April 5th transitional period deadline ( I finally got through after a 50 minute wait - not great when ringing from abroad ) the Computer Says No drone who finally answered says there's a 22-week delay before any letters are answered but that if they're received before the deadline you will still be able to pay.
22 weeks...
Unbelievable.

Yes my son was told the same. His application to pay Class 2 from abroad has been with HMRC since early September and still not been dealt with. He was told not to worry as he would still be allowed to pay pre 2016 years as he'd applied before the deadline. I'm not sure I trust them so hopefully they will get to his soon as a week or so ago they were at end of August letters.

Wrath_of_Kain

Audaxer said:

Mmaatttt said:

Am I correct in thinking it's best to pay at the end of the tax year as my £3K can be earning elsewhere until then?

Yes, but best not to leave it until too near the end of the tax year, as HMRC say it can take up to 10 weeks for them to process the payments.

This is concerning .... surely they would need to honour the 5th April ?

Wrath_of_Kain

molerat said:

If you had posted all your forecast figures here you would have got that info in around 5 minutes.

This is where i will be coming for sure

stevecash

I understand from gov.uk that "after April 2023 you'll only be able to pay for voluntary contributions for the past 6 years." Currently, the 'usual' cost of paying for a full NI year is £824, but does anybody know what this cost will be wef 06 April 2023?

molerat

£907.40. Costs rise in line with CPI each year so a big jump this time.  A year stays at its initial price for 2 years after the end of that year.

Pat38493

molerat said:

£907.40. Costs rise in line with CPI each year so a big jump this time.  A year stays at its initial price for 2 years after the end of that year.

If we just need to top up a couple of current years some time during the next 8 years, would you recommend to do it as soon as possible in each early year, or wait?  Waiting avoids the possibility of death before the SP kicks in, but I guess the cost (at least in nominal terms) will keep going up?  My thinking was that the cost in real terms should still remain the same so wait.

stevecash

Thanks for the info. In my case (having checked with the Future Pension Service yesterday), there would only be a positive effect on my SP if I were to pay for recent years (cheapest being 20/21 @ £795.60 and 21/22 @ £800.80).This would bring my SP to about 2 quid short of the max weekly pension, so the benefit of my paying for a 3rd year at £ 824.20 would be marginal.

Seems to me that it would be worth my paying for 2 additional years, but I'll have to decide whether to action that now at a total cost of £1596.40 or to keep my money for now and still have the option to pay a bit more for 2 additional years at a later date (being 3 years away from SP age).

Thanks for your comments.