Guide discussion: Voluntary national insurance contributions

lon_don

molerat said:

Sumselkb said:

I tried phoning HMRC again today but cannot even get as far as being put on hold, just told they are too busy and told to try again later before getting disconnected.

7.55am is probably the best time to try.

Wife called HMRC shortly after 8am this morning. 1 hour 20m wait but she got her 18 digit reference number!

Aes_Sedai

Many thanks, molerat and Dazed_and_C0nfused. Makes sense. Probably not worth it on balance even when factoring piece of mind, so I'll pass.

I wasn't aware about the 3 free years for when I was 16 to 18! Great piece of info. I wonder if me getting them despite not being a UK resident before 2009 has anything to do with being an EU national.

Good luck to those of you who are trying to speak to the Future Pension Centre!

p00hsticks

Aes_Sedai said:

I wasn't aware about the 3 free years for when I was 16 to 18! Great piece of info. I wonder if me getting them despite not being a UK resident before 2009 has anything to do with being an EU national.

No it doesn't. The purpose of the three years was to ensure that those who stayed in school until the age of 18, when it wasn't the norm to do that, could still attain a full state pension in the days when to do so men needed 44 full years and women (who reached state pension age at 60 rather than the men's 65) 39 years. It was much simpler though to just award them to everyone with an NI number rather than work out who was actually still in education. The three years (although in my particular case for some reason it seems to be only two) were done away with in 2010 when the number of years needed was significantly reduced.

snowdrop56

I have learnt a lot from this forum, thank you.  I would like to confirm my thinking on paying voluntary contributions.

I reached SPA in May 2022 and am receiving £143.52pw based on 33 years of contracted out employment. I left employment in December 2004. 

My NI record says that for around £800 per tax year from 2007 to 2022 I have the option to purchase additional contributions to boost my pension.

Am I right in thinking that for each year (post 2016) that I buy voluntary contributions that I can increase my weekly amount by £5.29 (subject to tax)?  My rudimentary calculations suggest that 6 years of contributions will bring me up to £180.55pw and that it will take between 3 and 4 years to break even.

I am conscious that I fall within the uncertain years having accrued 33 NI years by late 2004 and my understanding from this forum is that any years purchased before 2016 will definitely be of no benefit.  

I would be very grateful for any thoughts on the best way to proceed.  

molerat

snowdrop56 said:

I have learnt a lot from this forum, thank you.  I would like to confirm my thinking on paying voluntary contributions.

I reached SPA in May 2022 and am receiving £143.52pw based on 33 years of contracted out employment. I left employment in December 2004. 

My NI record says that for around £800 per tax year from 2007 to 2022 I have the option to purchase additional contributions to boost my pension.

Am I right in thinking that for each year (post 2016) that I buy voluntary contributions that I can increase my weekly amount by £5.29 (subject to tax)?  My rudimentary calculations suggest that 6 years of contributions will bring me up to £180.55pw and that it will take between 3 and 4 years to break even.

I am conscious that I fall within the uncertain years having accrued 33 NI years by late 2004 and my understanding from this forum is that any years purchased before 2016 will definitely be of no benefit.  

I would be very grateful for any thoughts on the best way to proceed.  

With a full contracted out employment it is unlikely that pre 2016 contributions will add value, knowing the COPE amount is the only way to be certain so unless you happen to have that handy .....  Yours would have been at least £27, most likely much higher, and anything above that would mean that pre 2016 years were definitely not viable.  Each post 2016 year will add £5.29.  You need 8 to reach the max, £185.15 - £143.52 = £41.63 / 5.29 = 7.9, so the 6 available, 2016-17 to 2021-22, will get you to £175.26.  You need to get a move on though as 2016-17 ceases to be available after April 5th and the rest increase to £907.40 from then.  And DWP / HMRC are inundated with calls.

bullbee

Hi, first post here, have been reading through the thread and it's been very helpful regarding voluntary contributions.  I wonder if anyone could give me some guidance on my situation please.  Key points: 
I can get my state pension in 2034, forecast is £185.15, my estimate based on records is £147.77 
If I contribute another 8 years I will get £185.15
I have 29 years of full contributions
12 years to contribute
10 years where I did not contribute enough

2021 to 2022  Year not full  Pay £800.80 by April 2028
2020 to 2021  Year not full  Pay £795.60 by April 2027
2019 to 2020  Year not full  Pay £824.20 by April 2026
2018 to 2019  Year not full  Pay £824.20 by April 2025
2017 to 2018   Year not full  Pay £459.65 by April 2024
2016 to 2017  Year not full  Pay £824.20 by April 2023
2015 to 2016  Year not full  Pay £824.20 by April 2023
2014 to 2015  Year not full  Pay £491.35 by April 2023
2013 to 2014  Year not full  Pay £681.55 by April 2023
2012 to 2013  Year not full  Pay £427.95 by April 2023

Cope amount is £24.75

I would like to pay the years which need to be paid by April 2023 but not sure if this would help to boost my pension as I was contracted out. Thanks in advance.

molerat

You can successfully add 1 pre 2016 year adding £4.73 the rest must come from 2016-17 onwards adding to your pension at £5.29 each.  7 post 2016 will get you to £184.80, the 8th will only add 35p to take you to the max, 1 pre and 6 post will get you to £184.24, 91p short.

edited for error re pre 2016 years..... oops 

laser01

Many thanks for all the very helpful information on this thread, absolutely fantastic. I  telephoned the Future Pensions Service (on Friday 17/2/23) and like nickutd  couldn't  get further than being told by answering machine to call back after April as they are only dealing with pre 2016 years.

I am not sure whether paying additional years will improve my pension and if so how many do I need to pay. 

Key notes from my online forecast and NI records:

You can get your State Pension on xx xx 2024

• Your forecast is £169.85 a week, £738.54 a month, £8862.53 a year.
• Estimate based on your National Insurance record up to 5 April 2022: £159.27 a week
• Forecast if you contribute until April 2024: £169.85 a week

You have:

41 years of full contributions
2 years to contribute before 5 April 2024
7 years when you did not contribute enough

until 2015- 2016 I had 39 years and from 2016-17, 2017-18 I have 2 full years then I retired from my job in the NHS  so

2018-19, 19-20, 20-21, 21-22, 22-23 missing as well as (1977-78, 78-79, 79-80) when I was at university.

Since I worked in NHS I was contracted out, my COPE is £80.44 per week

laser01

Apoogies .  New here. I seem to have started a new thread in error. Hopefully in correct place now.

Many thanks for all the very helpful information on this thread, absolutely fantastic. I  telephoned the Future Pensions Service (on Friday 17/2/23) and like nickutd  couldn't  get further than being told by answering machine to call back after April as they are only dealing with pre 2016 years.

I am not sure whether paying additional years will improve my pension and if so how many do I need to pay. 

Key notes from my online forecast and NI records:

You can get your State Pension on xx xx 2024

• Your forecast is £169.85 a week, £738.54 a month, £8862.53 a year.
• Estimate based on your National Insurance record up to 5 April 2022: £159.27 a week
• Forecast if you contribute until April 2024: £169.85 a week

You have:

41 years of full contributions
2 years to contribute before 5 April 2024
7 years when you did not contribute enough

until 2015- 2016 I had 39 years and from 2016-17, 2017-18 I have 2 full years then I retired from my job in the NHS  so

2018-19, 19-20, 20-21, 21-22, 22-23 missing as well as (1977-78, 78-79, 79-80) when I was at university.

Since I worked in NHS I was contracted out, my COPE is £80.44 per week

molerat

You need 5 more years to reach the full £185.15.  You have 2 years going forward, 2022-23 and 2023-24 and 4 empty looking back so need all but one to fill up.

2021-22 and 2022-23 will be staying at £800.80 and £824.20 after April, anything earlier will be increasing to £907.40.

The problem you have now is the scrabble to buy years and getting in touch with DWP / HMRC.  If you are confident you could just phone up HMRC and pay for 3 or 4 of the available years, 18-19, 19-20 and 20-21 as the cheapest (£824.20, £824.20 & £795.60) and pay 21-22 and 22-23 after April.