Guide discussion: Voluntary national insurance contributions

molerat

p00hsticks said:

TakeaViewH said:

I'm sorry but what is COPE?

  there should be a line in your pension forecast indicating this, and if you click on the link to find out more it will actually show you your personal COPE amount.

OP is past SPA so no access to that.

Oldman2

My wife can get her state pension in March 2028

Forecast is £163.99 if she contributes to 5th April 2027

 Her estimate based on records to 5th April 2022 is £137.54 

She could get £185.15 max but is it worth the outlay.

She has 26 years of full contributions

5 years yet to contribute

8 years where she did not contribute enough

2015 to 2016  Year not full  Pay £63.40 

2014 to 2015  Year not full  Pay £110.95 

2013 to 2014  Year not full  Pay £602.30 

2012 to 2013  Year not full  Pay £744.95  

2011 to 2012  Year not full  Pay £824.20 

2010 to 2011  Year not full  Pay £744.95 

From reading many posts in this excellent thread I think I'm right that as all the part years are pre 2016 that £4.73 is the number to use for each year repaid to full.

If correct am I right is saying if she pays 2015 back to 2012 (4 years) the final pension would be £183.47

With an outlay of £1521.60

Paying back the next cheapest year £744.95 only increases the pension by £1.68 a week and would take 8.5yrs before the outlay was recovered so I don't think that's of value?

GeorgeK73

Hi all, 

I came to the UK in 2014, I have full year contributions since then  but when I reach pension age I will have less than the required 35 years for a full state pension. Can I buy missing years in this scenario?

FantasticVoyage

Hello, I’m hoping someone here can confirm or otherwise, my own NICs and SP situation? Thanks in advance if you can.

Forecast 185.15 pw if I contribute a further 5 years 
Estimate 159.08 pw
34 years full contributions (1984/1985 - 2018/19 with a uni gap in mid 80’s).
13 years to contribute before 5/4/2035 - I am not intending to work again.
4 years where I’ve not contributed enough;
19/20 nil contributions 
20/21 nil contributions 
21/22 nil contributions 
current year not available but is also nil contributions.
COPE is 57.05 pw.

 I am therefore looking to pay my available missing 3 post-2016 years as soon as possible for cost purposes though I realise that may in fact have to be done post-April 23 to allow more urgent queries through the system.

Those 3 years will take my estimate to 173.87 pw and I can deal with the remaining shortfall for 2 tax years including current 22/23, in future.

This feels quite straightforward to me unless I’ve missed something fundamental?

Thanks again.

molerat

FantasticVoyage said:

Hello, I’m hoping someone here can confirm or otherwise, my own NICs and SP situation? Thanks in advance if you can.

Forecast 185.15 pw if I contribute a further 5 years 
Estimate 159.08 pw
34 years full contributions (1984/1985 - 2018/19 with a uni gap in mid 80’s).
13 years to contribute before 5/4/2035 - I am not intending to work again.
4 years where I’ve not contributed enough;
19/20 nil contributions 
20/21 nil contributions 
21/22 nil contributions 
current year not available but is also nil contributions.
COPE is 57.05 pw.

 I am therefore looking to pay my available missing 3 post-2016 years as soon as possible for cost purposes though I realise that may in fact have to be done post-April 23 to allow more urgent queries through the system.

Those 3 years will take my estimate to 173.87 pw and I can deal with the remaining shortfall for 2 tax years including current 22/23, in future.

This feels quite straightforward to me unless I’ve missed something fundamental?

Thanks again.

You need an additional 5 years to reach the max.  You have 13 years available going forward and 3 available years going back.  Up to you how you decide to do it but yes, paying those 3 years will add £5.29 each taking you to £174.95 (3 x £5.29 = £15.87 + £159.08 = £174.95 ....  I think I know what you did )  Apart from 21-22 they will be increasing in price to £907.40 from April. You can then pick up 22-23 before April 2025 for £824.20 and 23-24 for £907.40 before April 2026 for the cheapest way to do it.  For the next 12 years though you will have to watch out for buses as if you step out in front of one then all is wasted

molerat

GeorgeK73 said:

Hi all, 

I came to the UK in 2014, I have full year contributions since then  but when I reach pension age I will have less than the required 35 years for a full state pension. Can I buy missing years in this scenario?

You need a pension forecast to show what you have and what you can fill, do you have an on line tax account ?

molerat

Oldman2 said:

My wife can get her state pension in March 2028

Forecast is £163.99 if she contributes to 5th April 2027

 Her estimate based on records to 5th April 2022 is £137.54 

She could get £185.15 max but is it worth the outlay.

She has 26 years of full contributions

5 years yet to contribute

8 years where she did not contribute enough

2015 to 2016  Year not full  Pay £63.40 

2014 to 2015  Year not full  Pay £110.95 

2013 to 2014  Year not full  Pay £602.30 

2012 to 2013  Year not full  Pay £744.95  

2011 to 2012  Year not full  Pay £824.20 

2010 to 2011  Year not full  Pay £744.95 

From reading many posts in this excellent thread I think I'm right that as all the part years are pre 2016 that £4.73 is the number to use for each year repaid to full.

If correct am I right is saying if she pays 2015 back to 2012 (4 years) the final pension would be £183.47

With an outlay of £1521.60

Paying back the next cheapest year £744.95 only increases the pension by £1.68 a week and would take 8.5yrs before the outlay was recovered so I don't think that's of value?

Does her forecast show as contracted out and a COPE ?

By the figures I suspect not so each available year will add the full £5.29 to her amount. If she is contributing for the full 5 years going forward and purchases 4 back years she will get the full £185.15.  Class 3 is almost always worth buying especially those 2 really cheap 14-15 & 15-16.  But you would need to get your skates on and contact DWP & HMRC to get things moving before April.

Oldman2

molerat said:

Oldman2 said:

My wife can get her state pension in March 2028

Forecast is £163.99 if she contributes to 5th April 2027

 Her estimate based on records to 5th April 2022 is £137.54 

She could get £185.15 max but is it worth the outlay.

She has 26 years of full contributions

5 years yet to contribute

8 years where she did not contribute enough

2015 to 2016  Year not full  Pay £63.40 

2014 to 2015  Year not full  Pay £110.95 

2013 to 2014  Year not full  Pay £602.30 

2012 to 2013  Year not full  Pay £744.95  

2011 to 2012  Year not full  Pay £824.20 

2010 to 2011  Year not full  Pay £744.95 

From reading many posts in this excellent thread I think I'm right that as all the part years are pre 2016 that £4.73 is the number to use for each year repaid to full.

If correct am I right is saying if she pays 2015 back to 2012 (4 years) the final pension would be £183.47

With an outlay of £1521.60

Paying back the next cheapest year £744.95 only increases the pension by £1.68 a week and would take 8.5yrs before the outlay was recovered so I don't think that's of value?

Does her forecast show as contracted out and a COPE ?

I suspect not so each available year will add the full £5.29 to her amount. If she is contributing for the full 5 years going forward and purchases 4 back years she will get the full £185.15.  Class 3 is almost always worth buying especially those 2 really cheap 14-15 & 15-16.  But you would need to get your skates on and contact DWP & HMRC to get things moving before April.

No mention of contracted out or COPE in her forecast Molerat.
I did make contact with HMRC Friday but they wouldn't give me an 18 digit cade to pay with until I had talked to the Future pension center which is so overloaded with calls.
I tried again this morning calling the future pension center and got through after 1hr+ and then got told they wouldn't look at my wife's forecast without her being with me to answer security questions (she was at work) so we are up the creek without a paddle as when she is home late afternoon its permanently busy tone when you finish jumping hoops to get the right option. 
Thanks for your reply.

FantasticVoyage

molerat said:

FantasticVoyage said:

Hello, I’m hoping someone here can confirm or otherwise, my own NICs and SP situation? Thanks in advance if you can.

Forecast 185.15 pw if I contribute a further 5 years 
Estimate 159.08 pw
34 years full contributions (1984/1985 - 2018/19 with a uni gap in mid 80’s).
13 years to contribute before 5/4/2035 - I am not intending to work again.
4 years where I’ve not contributed enough;
19/20 nil contributions 
20/21 nil contributions 
21/22 nil contributions 
current year not available but is also nil contributions.
COPE is 57.05 pw.

 I am therefore looking to pay my available missing 3 post-2016 years as soon as possible for cost purposes though I realise that may in fact have to be done post-April 23 to allow more urgent queries through the system.

Those 3 years will take my estimate to 173.87 pw and I can deal with the remaining shortfall for 2 tax years including current 22/23, in future.

This feels quite straightforward to me unless I’ve missed something fundamental?

Thanks again.

You need an additional 5 years to reach the max.  You have 13 years available going forward and 3 available years going back.  Up to you how you decide to do it but yes, paying those 3 years will add £5.29 each taking you to £174.95 (3 x £5.29 = £15.87 + £159.08 = £174.95 ....  I think I know what you did )  Apart from 21-22 they will be increasing in price to £907.40 from April. You can then pick up 22-23 before April 2025 for £824.20 and 23-24 for £907.40 before April 2026 for the cheapest way to do it.  For the next 12 years though you will have to watch out for buses as if you step out in front of one then all is wasted

Thank you for clarifying @molerat. Well I can’t work out what went wrong with my final calc 🤦‍♀️ but am pleased my overall analysis was correct. I’ll try for a code from HMRC but if I can’t get through, so be it.

It is a gamble all of this but I’m happy to pay, it’s a no brainer looking at potential returns vs risks. I’m sure you saw from my estimates that I effectively retired at 49 (due to several sets of circumstances). I’m in good health and I’m looking forward to still being here in a decade or 2 👍🏻

Janie2008

You could always tell HMRC that your wife has spoken to the future pension centre and get the code. Just be sure what years exactly you want to buy.