Guide discussion: Voluntary national insurance contributions

ElsiesNephew

My understanding from 2016 was that having been 'contracted out' since 1978 and having ceased paying NI in 2015, I couldn't achieve the full current State pension rate (ie the £185pw) and that seemed logical. I had 41 Full contribution years prior to 2016 and a Cope of about £120.
But reading this thread it seems I could increase my forecast of £161 to £185 by filling in some post 2016 years with Class 3 contributions. Been trying to call Future pensions to confirm, but can't even get in their phone queue over the past few days...at the end of the recorded menus just get the engaged tone and it cuts the call. Can anyone here confirm for me?  Thanks

jem16

ElsiesNephew said:

My understanding from 2016 was that having been 'contracted out' since 1978 and having ceased paying NI in 2015, I couldn't achieve the full current State pension rate (ie the £185pw) and that seemed logical. I had 41 Full contribution years prior to 2016 and a Cope of about £120.
But reading this thread it seems I could increase my forecast of £161 to £185 by filling in some post 2016 years with Class 3 contributions. Been trying to call Future pensions to confirm, but can't even get in their phone queue over the past few days...at the end of the recorded menus just get the engaged tone and it cuts the call. Can anyone here confirm for me?  Thanks

If you have gaps from 2016 onwards then yes it will improve your state pension.

molerat

You are able to fill any post 2016 years to add to your 2016 starting amount.  Each of those years will add £5.29 to your pension up to the full £185.15 so £185.15 - £161.xx / £5.29 = 5, the 5th year not giving the full £5.29.  Many of those years will be increasing after 5 April.  Contacting FPC & HMRC is best done as close to 8 am as possible.

ElsiesNephew

Thanks molerat and Jem16, appreciate your help.

robbybobs

Hello. Since 1988, I have worked in the UK for thirteen years and EU countries for the others. I have paid NI contributions or equivalent in each country. I am due to retire in a few years. I would like to know whether or not it is worth me filling in the gaps by paying UK voluntary contributions for the times I was not in the UK in order to boost my pension?

p00hsticks

robbybobs said:

Hello. Since 1988, I have worked in the UK for thirteen years and EU countries for the others. I have paid NI contributions or equivalent in each country. I am due to retire in a few years. I would like to know whether or not it is worth me filling in the gaps by paying UK voluntary contributions for the times I was not in the UK in order to boost my pension?

Very probably. As I understand it the contributions made abroad won't increase your UK State Pension (although they do count towards the ten years minimum qualification you need to get any UK state penison at all), but may entitle you to something from the country you paid them in.

From my understanding, as you were working abroad, you can fill in the gaps in your UK record using class 2 contributions whcih are even cheaper than Class 3, although both represent a very good investment.

To confirm, you should get a State Pension forecast and post up the details here, (current amount, forecast amount, years earned before 2016, years earned after 2016, whcih years are unfilled, and and COPE amount) and people wil lbe able to give you more info.

robbybobs

Thank you p00hsticks. 

I really should have added that I live in Belgium now and will continue to do so for the foreseeable future. Sorry about that. 

In summary, the UK Tax Service web site says: 

You can get your State Pension on 21 December 2032. Your forecast is £185.15 a week 

Estimate based on your National Insurance record up to 5 April 2022: £146.13 a week 

Forecast if you contribute another 8 years before 5 April 2032: £185.15. It is the most you can get. 

Before 2016, You made 27 years (this includes when I worked as a teenager and when I was a student) of full contributions. 

You have 10 years to contribute before 5 April 2032 and 14 years when You did not contribute enough. 

After 2016 you made 0 years contributions (as I have been living in Belgium from then until now).

 

robbybobs

I don't kno what my COPE amount would be. Sorry

robbybobs

Sorry, just found it! Your COPE estimate is £38.85 a week.

molerat

Your COPE amount for all practical purposes means you are limited to making up to 30 pre 2016 years if you have any gaps.

You need another 8 years to take you from your current £146.13 to £185.15.  You have enough time going forward to do that or can buy some past years.  Exceptionally good value with class 2, pay a one off £3.15 and get £5.29 per year for life (£163.80 payment gets you £5.29 per week pension)