Guide discussion: Voluntary national insurance contributions

muttleyb

An update. Further to the helpful answer from molerat a couple of days ago, I just wanted to give an update in case it is of any help to anyone else. I phoned HMRC this morning, starting just before 8am. Disconcertingly the message started with the words 'we are closed...' so I kept re-dialling until just after 8am. The message still started the same way, so I figured I might as well carry on listening. There was a 3 minute recorded message about home responsibilities protection and then another one about cost of living payments, and so on. Eventually I got through to a voice recognition thingy. I answered a few questions, then it asked why I was calling. Unfortunately it hadn't been programmed to recognise 'I would like an 18 digit reference please' or any variation on that theme. I think I must have worn it down because after a while I was put on hold, and after an hour and 20 minutes the call was answered by a helpful young man, who asked me a few questions, told me how much to pay for the years in question and gave me my 18 digit reference. I then tried to pay via the Government website, but my bank wasn't listed, so I logged on to my bank, set them up as a new payee in the usual way and made the payment. So, persevere, folks! Hopefully you will get through eventually.

laser02

molerat said:

laser01 said:

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

Answered in your other post but

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.

Many thanks Molerat very helpful indeed.  I phoned HMRC on Friday 17th Feb at 8am  and obtained an 18 digit number to pay 5 years as this was what I suspected I needed to pay.  He told me it would cost £4069 in total including 22-23 . It took me 33 minutes in total.

I am so grateful for all your help. Many thanks. Sorry for late response I had to re -register with the site due to a problem with verifying my e- mail  address. 

mad_mix

I’ve been trying on numerous occasions to contact the Future Pensions Service without success, so am wondering if anyone else can assist me?

My intention is to make a voluntary payment for the years 06/07 to 21/22.  I’ve already checked the amount required, and received an 18 digit reference number.  However, before making the payment, I wanted to check that this would be beneficial.  I was in full time employment with a company pension until the 04/05 tax year and haven’t made any contributions since.             

You can get your State Pension on xx xx 2039

Estimate based on your National Insurance record up to 5 April 2022 : £81.67 a week

Forecast if you contribute until 5 April 2039 : £171.60 a week

The most you can increase your forecast to is : £185.15 a week

Your COPE estimate is £27.74 a week

88/89 to 04/05 Full Years  (17 years of full contributions)

17 years when you did not contribute enough

 

Simon11

mad_mix said:

I’ve been trying on numerous occasions to contact the Future Pensions Service without success, so am wondering if anyone else can assist me?

My intention is to make a voluntary payment for the years 06/07 to 21/22.  I’ve already checked the amount required, and received an 18 digit reference number.  However, before making the payment, I wanted to check that this would be beneficial.  I was in full time employment with a company pension until the 04/05 tax year and haven’t made any contributions since.             

You can get your State Pension on xx xx 2039

Estimate based on your National Insurance record up to 5 April 2022 : £81.67 a week

Forecast if you contribute until 5 April 2039 : £171.60 a week

The most you can increase your forecast to is : £185.15 a week

Your COPE estimate is £27.74 a week

88/89 to 04/05 Full Years  (17 years of full contributions)

17 years when you did not contribute enough

 

What is your thinking around working over the next +15 years?

It looks like you will definitely want to pay for a few years now, however if you end up going back into work, then the investment may not fully be worth it.

molerat

mad_mix said:

I’ve been trying on numerous occasions to contact the Future Pensions Service without success, so am wondering if anyone else can assist me?

My intention is to make a voluntary payment for the years 06/07 to 21/22.  I’ve already checked the amount required, and received an 18 digit reference number.  However, before making the payment, I wanted to check that this would be beneficial.  I was in full time employment with a company pension until the 04/05 tax year and haven’t made any contributions since.             

You can get your State Pension on xx xx 2039

Estimate based on your National Insurance record up to 5 April 2022 : £81.67 a week

Forecast if you contribute until 5 April 2039 : £171.60 a week

The most you can increase your forecast to is : £185.15 a week

Your COPE estimate is £27.74 a week

88/89 to 04/05 Full Years  (17 years of full contributions)

17 years when you did not contribute enough

 

You can safely make pre 2016 years up to 30 so no problems. I make what you are paying will bring you up to £160.71. Can't 100% check at the moment though.

mad_mix

Thanks for your reply.

I'm in a fortunate position where I don't need to work, so it's unlikely that I will be working between now and my retirement age.

molerat

Ran the numbers now I am at home.

You currently need £103.48 or 20 years to reach the max with 17 years left to go

The 10 pre 2016 years will take you to £128.97

The 6 post 2016 years will take you to £160.71

Leaving you needing another £24.44 or 5 years to reach the max.

10 + 6 + 5 = 21, the difference being down to a pre 2016 year adding £4.73, a post £5.29.

To reach the max in 20 years you need 4 pre and 16 post 2016 years but the cost of the additional years going forward may outweigh the cost of the current approach.

mad_mix

Molerat,

Thank you so much for your help.

So I'm assuming that the COPE element does not cause me any issues?

molerat

mad_mix said:

Molerat,

Thank you so much for your help.

So I'm assuming that the COPE element does not cause me any issues?

COPE only sets your 2016 starting amount.  It was deducted from the new scheme calculation in April 2016 and you get the higher of the old or new.  Yours worked out at £47.86 new and £68.67 old which meant old won.  Adding additional pre 2016 years recalculates that starting amount meaning the 10 additional makes it £92.33 new and £108.43 old, the old calculation was still ahead.

mad_mix

Thanks for clarifying that.

"10 + 6 + 5 = 21, the difference being down to a pre 2016 year adding £4.73, a post £5.29."

So I think you're saying essentially it may work out better for me to pay less than 10 years of pre-2016 and more post years at some time in the future as they add more.