Guide discussion: Voluntary national insurance contributions

Timbobmit

Hi, just phoned Pensions Centre to check on adding missing years to top up pension for next year, but told only can go back to 2016! Thought that was case next year, and could top up back to 2006 at moment. Only querying because only need to top up 2010 by £50, but now talking of £500+!

molerat

Timbobmit said:

Hi, just phoned Pensions Centre to check on adding missing years to top up pension for next year, but told only can go back to 2016! Thought that was case next year, and could top up back to 2006 at moment. Only querying because only need to top up 2010 by £50, but now talking of £500+!

What reason did they give ?

You certainly can pay back to 2006 until April 2023 except in certain limited circumstances.

Are you sure that 2010 would actually add benefit rather than simply "not being allowed" to pay it ?

Timbobmit

Didn’t give a reason other than needs to be 2016 or after as far as I understood. On checking  NI contributions HMRC stated:

2010-11

Year is not full

You have contributions from

Paid employment: £186.58

You can make up the shortfall

Pay a voluntary contribution of £47.55 by 5 April 2023. This shortfall may increase after 5 April 2023.

So I presume from that I can pay just £47.55 to make that year count & so would add benefit, why wouldn’t  it? what am I missing?

Dazed_and_C0nfused

Timbobmit said:

Didn’t give a reason other than needs to be 2016 or after as far as I understood. On checking  NI contributions HMRC stated:

2010-11

Year is not full

You have contributions from

Paid employment: £186.58

You can make up the shortfall

Pay a voluntary contribution of £47.55 by 5 April 2023. This shortfall may increase after 5 April 2023.

So I presume from that I can pay just £47.55 to make that year count & so would add benefit, why wouldn’t  it? what am I missing?

That all years aren't equal.  Pre and post 2016 can have different impacts on your State Pension.

If you post your full NI history and State Pension forecast someone will be able to explain properly.

p00hsticks

Timbobmit said:

Didn’t give a reason other than needs to be 2016 or after as far as I understood. On checking  NI contributions HMRC stated:

2010-11

Year is not full

You have contributions from

Paid employment: £186.58

You can make up the shortfall

Pay a voluntary contribution of £47.55 by 5 April 2023. This shortfall may increase after 5 April 2023.

So I presume from that I can pay just £47.55 to make that year count & so would add benefit, why wouldn’t  it? what am I missing?

Topping up years prior to 2016 may not necessarily increase your pension forecast.

If you already had 35 full NI years prior to 2016 filling any pre-2016 years definitely won't increase your forecast.

If you had less than 30 years prior to 2016 it (almost?) certainly would.

Between  30 and 35 it would depend on your particular cicrumstances.

As Dazed_and_confused says, post up the figures from your state pension forecast, and how many of the NI years you have are before and after 2016, and people on here should be able to explain further.....

Timbobmit

That could explain it. I had 33 years full years prior to 2016 and none after. Full list of incomplete years is:

2020-21

Year is not ful

You have contributions from

Paid employment: £24.15

You can make up the shortfall

Pay a voluntary contribution of £566.10 by 5 April 2027. This shortfall may increase after 5 April 202

2019-20

Year is not ful

You did not make any contributions this y

You can make up the shortfall

Pay a voluntary contribution of £681.55 by 5 April 2026. This shortfall may increase after 5 April 2023.

2018-19

Year is not full

You have contributions from

Paid employment: £8.82

You can make up the shortfall

Pay a voluntary contribution of £649.85 by 5 April 2025. This shortfall may increase after 5 April 2023.

2017-18

Year is not full

You have contributions from

Paid employment: £27.42

You can make up the shortfall

Pay a voluntary contribution of £380.40 by 5 April 2024. This shortfall may increase after 5 April 2023.

2016-17

Year is not full

You have contributions from

Paid employment: £47.96

You can make up the shortfall

Pay a voluntary contribution of £523.05 by 5 April 2023. This shortfall may increase after 5 April 2023.

2015-16

Year is not full

You have contributions from

Paid employment: £20.57

You can make up the shortfall

Pay a voluntary contribution of £713.25 by 5 April 2023. This shortfall may increase after 5 April 2023.

2014-15

Year is not full

You have contributions from

Paid employment: £28.72

You can make up the shortfall

Pay a voluntary contribution of £538.90 by 5 April 2023. This shortfall may increase after 5 April 2023.

2013-14

Year is not full

You did not make any contributions this year

You can make up the shortfall

Pay a voluntary contribution of £665.70 by 5 April 2023. This shortfall may increase after 5 April 2023.

2012-13

Year is not full

You have contributions from

National Insurance credits: 4 weeks

These may have been added to your record if you were ill/disabled, unemployed, caring for someone full-time or on jury service.

You can make up the shortfall

Pay a voluntary contribution of £427.95 by 5 April 2023. This shortfall may increase after 5 April 2023.

2011-12

Year is not full

You did not make any contributions this year

You can make up the shortfall

Pay a voluntary contribution of £348.70 by 5 April 2023. This shortfall may increase after 5 April 2023.

2010-11

Year is not full

You have contributions from

Paid employment: £186.58

You can make up the shortfall

Pay a voluntary contribution of £47.55 by 5 April 2023. This shortfall may increase after 5 April 2023.

1979-80

Year is not full

1978-79

Year is not full

1977-78

Year is not full

1976-77

Year is not full

1975-76

Year is not full
Dies that help, or make any difference.
Thanks

molerat

With 33 pre 2016 years the most likely reason is that purchasing another pre 2016 year would add nothing but without the full details of your forecast it is impossible to say for definite.

Were you in a contracted out pension scheme, does your forecast show a COPE amount ?

In the simplest terms if you were in a contracted out pension scheme and your starting amount at 2016 was based on the old calculation then only 30 pre 2016 years can be used.  If you want to post all the figures then that can be confirmed.

Timbobmit

hi again Molerat.  Forecast was £162.63 per week with 33 years, but if top up 4 years would go up to £183.79 (a 5th year would only add £1.36). 
Yes, was contracted out (1981-93 I think), and estimated COPE = £22.51.
Any other figures needed? Tho from what you’ve said so far sounds like will have to use 2016+ years to top up, shame as will cost over £800more, but still worth it.
thanks again.

molerat

With a current amount of £162.63, 33 pre 2016 years and a COPE of £22.51 you had a 2016 starting amount of £136.74 under the old rules and £124.25 under the new, old wins.  Adding another pre 2016 year keeps the old scheme at £136.74, as you are limited to 30 years, and brings the new scheme to £128.69, old scheme still wins so no value added.  Yes, you will have to top up from post 2016 years.

Timbobmit

Thanks for all that & Sorry for troubling you when they were correct from the start, but makes me feel better knowing I’m not losing out somewhere.