Guide discussion: Voluntary national insurance contributions

p00hsticks

Deborah_Simms said:

According to my forecast I will receive £203.85 pw. I have 43 years of full contributions, 2 years to contribute until I receive my pension and 5 years when I did not contribute enough, 2010-2015.
I just need to know if I need to fill in the 5 years?

As at least 35 of those 43 years must be prior to April 2016, there would be no benefit in buying those additional pre-2016 years. 

Mult1plexer

Hello The_Hawk,
Are you already at/close to state pension age?  If so, you could try calling 0800 731 0469. Like you, I was on the phone for ages before finally being transferred to this number.  Best of luck!

5Yekram8

molerat said:

What exactly does the forecast show? Not just the top line amount, are there other amounts? What does it say after that amount? The forecast will clearly state if you need to do anything to reach that figure.

Your forecast is £203.85 a week, £886.38 a month, £10,636.60 a year

Your forecast

• is not a guarantee and is based on the current law
• does not include any increase due to inflation

You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2022

£193.97 a week

Forecast if you contribute another 2 years before 5 April 2024

£203.85 a week

£203.85 is the most you can get

After State Pension age, , you no longer pay National Insurance contributions.

 

Dazed_and_C0nfused

5Yekram8 said:

According to my forecast I will receive £203.85 pw. I have 43 years of full contributions, 2 years to contribute until I receive my pension and 5 years when I did not contribute enough, 2010-2015.
I just need to know if I need to fill in the 5 years? Is the forecast based on the assumption that I will pay the missing years?
I have tried and tried calling the GOV pension forecast number but continue to be unsuccessful with getting through!

Now you've posted your forecast it's clear that as things stand you won't receive £203.85.

You need to add 2 post 2016 years to reach that amount.  You may have already added 2022-23, just not updated on gov.uk, and that would take you to £199.79.  The second year would add the final £4.06 giving you £203.85.

Paying for years prior to 2016 will not increase your pension.

MACKEM99

5Yekram8 said:

molerat said:

What exactly does the forecast show? Not just the top line amount, are there other amounts? What does it say after that amount? The forecast will clearly state if you need to do anything to reach that figure.

Your forecast is £203.85 a week, £886.38 a month, £10,636.60 a year

Your forecast

• is not a guarantee and is based on the current law
• does not include any increase due to inflation

You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2022

£193.97 a week

Forecast if you contribute another 2 years before 5 April 2024

£203.85 a week

£203.85 is the most you can get

After State Pension age, , you no longer pay National Insurance contributions.

 

This is a perfect case as to why you need to read the detail rather than just the first line of your forecast.

tricky145

Hi All,

New enquiry is regarding my wife's OAP forecast, I have been reading previous posts and replies and would appreciate forumites advice.

Wife is currently approaching 60 YO, was employed in NHS, and finished when children came along. She will not be working so we will need to contribute to get max pension at some time.

Details from Gov website:-

You have:

• 34 years of full contributions
• 8 years to contribute before 5 April 2030
• 9 years when you did not contribute enough

You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2022

£172.67 a week

Forecast if you contribute another 6 years before 5 April 2030

£203.85 a week

£203.85 is the most you can get

Contracted Out Pension Equivalent (COPE)

Your COPE estimate is £20.51 a week

2022 to 2023

Your record for this year is not available yet

2021 to 2022

Year is not full

You did not make any contributions this year

You can make up the shortfall

Pay a voluntary contribution of £800.80 by 5 April 2028. This shortfall may increase after 5 April 2024.

2020 to 2021

Year is not full

You did not make any contributions this year

You can make up the shortfall

Pay a voluntary contribution of £795.60 by 5 April 2027. This shortfall may increase after 31 July 2023. 

2019 to 2020

Year is not full

You can make up the shortfall

Pay a voluntary contribution of £824.20 by 5 April 2026. This shortfall may increase after 31 July 2023.

2018 to 2019

Year is not full

Pay a voluntary contribution of £824.20 by 5 April 2025. This shortfall may increase after 31 July 2023.

2017 to 2018

Year is not full

Pay a voluntary contribution of £824.20 by 5 April 2024. This shortfall may increase after 31 July 2023.

2016 to 2017

Year is not full

Pay a voluntary contribution of £824.20 by 31 July 2023. This shortfall may increase after 31 July 2023.

2015 to 2016

Year is not full

2014 to 2015

Year is not full

2013 to 2014

Year is not full

You have contributions from

National Insurance credits: 7 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 £713.25 by 31 July 2023. This shortfall may increase after 31 July 2023.

QUESTION,

I understand we will have to pay additional 6 years NI contributions, what's the best years to select?

Am I correct in thinking year 2013 - 2014 is not an option as it's too early, so I have to select later years. Is the best example

2021 -22   £800.80, 2020 -21 £795.60 and any 4 years at £824.20  total payment = £4893.20

Am i paying any fractional years in this?  ( some people were paying the fuull year and only gaining a small increase in pension)

Hope this makes sense, Thanks in advance

Tricky

Dazed_and_C0nfused

One thing to consider is that five post 2016 years (which I think are all that will be of use) will take her to £201.79/week.

The sixth year will only add the final £2.06/week so not nearly as good value.

It will increase by the triple lock but obviously has a much longer pay back period.

molerat

2013-14 will add to the pension, it flips the starting amount from old calculation to new but can only add up to £4.29 to the current amount against £5.82 for buying a post 2016 year.  Up to you if you think it is worth paying that lower £713.25 for the final £2.06.

But there are enough years going forward and you could pay nearer retirement, the increased cost being a hedge against stepping in front of a bus

tricky145

Thanks Dazed,

I got in a right mess trying to work out the fractional year, you have cleared that up - I really only need the 5 additional years.

Pre 2016 years won't count so any 5 post 2016 years - is there any reason the two latest years are slightly cheaper?

Thanks again.

 

molerat

Years stay at the original price for 2 years after the end of the year then increase each year to the current year price.  So those 2 are in that (extended by 4 months) 2 year window at their original price and all earlier are at the 2022-23 price.