Guide discussion: Voluntary national insurance contributions

Dazed_and_C0nfused

paradiselover said:

They sent a letter after they told me what my pension would be at 60, it said that I needed 35 years now instead of 30 years for a full pension 

Do you still have that letter 🤔. 

Seems highly unlikely given there was never a period of time where someone your age would have needed 35 years.

paradiselover

So basically 1954 was a rubbish year to be born. 

I am going to look in attic for that letter because it did say that I would now retire at 65 and would need 35 years contributions instead of 30. It was bad enough they told me the date at 60 I would retire and the amount I would get. But now I need 36 years!

molerat

paradiselover said:

So basically 1954 was a rubbish year to be born.

No different to a man born on the same day as you.

paradiselover

Thanks for your help

Shadebather

Hello... I'm in the same state of frustrated despair as everyone else who's been trying for months to get through to the so Pension "Service". So I'm very pleased to have found this site, and I would appreciate any help you can give me...

My pension becomes due early 2025...

My Pension Forecast... £175.33 per week... based on record to date
Maximum I can raise it to is £203.85

NIC record

30 years of full contributions

2 years to contribute before 5 April 2024
18 years when you did not contribute enough

2009 to 2010
Year is not full
You have contributions from
National Insurance credits: 25 weeks
Pay a voluntary contribution of £427.95 by 31 July 2023. This shortfall may increase after 31 July 2023.

2010 to 2011
Year is not full
You have contributions from
National Insurance credits: 8 weeks
Pay a voluntary contribution of £697.40 by 31 July 2023. This shortfall may increase after 31 July 2023.

For the years 2012-12 to 2019-20, years not full, cost to top up £824.20 each
20-21 not full, top up cost £795.60
21-22 not full, top up cost £800.80

COPE, whatever that means!, is £64.61

So, please, what do I do to get to the £203.85

My guess is I pay to "complete" 2009-10 and 2010-11, and then pay for 20-21 and 21-22, and then another year at the "full" £824.20 ... but I'm guessing... so all help, advice gratefully received!

molerat

Clarification needed, your figures are difficult to read in that format.  Is that £175.33 the amount at April 2022 (or 2023), there are usually 3 amounts shown.  How are your full years split pre and post 2016, are they all pre 2016 ?

If you have 30 years pre 2016 with that COPE years 2015-16 and earlier will not add to your pension, they should not be bought.  All years must come from 2016-17 and later.  You need the 5 cheapest post 2016 years.

Shadebather

Thanks very much!

"Your forecast is £186.98... based on record up to Apr'22 £175.33... can improve forecast to £203.85..."

(I used the £175.33 as I don't expect to be paying for 22-23 or 23-4 unless I do it voluntarily)

And, ... all my full years are pre 2016... so there's no point completing the "partial" years I have in 09-10 and 10-11?

So... if what I have to do is pay 3 years at £824.20 and then 20-21 at £795.6 and 21-22 at £800.80... can you help with how I actually do that?

From your earlier, amazingly helpful, posts I see the £824.2 is going up to £907.40 soon...

I just wonder how I'm going to get a reference number to make the payment if I can't actually get through to HMRC... would it be very stupid to think I can just send a cheque with a letter saying this is to buy Voluntary NICs for years v,w,x,y & z?

molerat

From your earlier, amazingly helpful, posts I see the £824.2 is going up to £907.40 soon...

Not until April 2025 under the new extension

I used the £175.33 as I don't expect to be paying for 22-23 or 23-4 unless I do it voluntarily

It was just to clarify which of the 3 amounts it was, it is the most important one.

As you don't reach state retirement until early 2025 there is absolutely no rush.  You have until the end of next year to get it sorted in plenty of time for retirement and at the current prices.

I just wonder how I'm going to get a reference number to make the payment if I can't actually get through to HMRC... would it be very stupid to think I can just send a cheque with a letter saying this is to buy Voluntary NICs for years v,w,x,y & z?

That is how it was done in the old days and is still a valid way.  the only problem being the time it is taking them to open mail.

https://www.gov.uk/pay-voluntary-class-3-national-insurance/by-post

On Martin's programme last night it was mentioned that getting the reference may be available on line by the end of the year.

And, ... all my full years are pre 2016... so there's no point completing the "partial" years I have in 09-10 and 10-11?

Your starting amount is under the old rules so you can only use 30 years which you already have, adding more will not add to your pension.

Shadebather

That's brilliant, molerat, very helpful indeed.

I see you have covered the "pay by cheque" route before (page 58 of this thread for anyone who wants to look), and that seems the way to go, if it's still impossible to get through in a few months, now we know there isn't a pressing, or expensive, deadline.

Before coming here, I went to various other sites, there's an HMRC forum - completely useless, "staffed" by people who repeatedly say to phone a number people repeatedly tell them doesn't ever get answered... chocolate fireguard stuff.

Maybe someone "in the government" should read your posts and see how much simpler they could have made this whole process if only they'd bothered to do their jobs competently. In any private sector operation everybody involved with this wholly predictable shambles* would have got sacked. And rightly so.

The irony is the HMRC site for doing tax returns works surprisingly well... one really does wonder why they couldn't have maanged to code this up so we could all do it on line without depending on good people such as yourself.

Thanks very much!

==

* to those that say this is down to "the public" leaving this to the last minute, I'd just say, in my case, that I'd ensured I'd got up to the 30 years, made multiple choices on the basis that that was what it took to get the maximum state (crucially inflation proofed) pension... and I wasn't conscious that had changed to 35 in 2016.

When people, tax payers, begin to fully grasp the vast differential that there is between public sector and private sector pensions - which will become vast should inflation persist - there is going to be something akin to a civil war - because multiple gutless governments of all persuasions have entirely failed to be straight with people. [rant over!]

Bladerunner99

PattayaPete said:

OK so I paid for six years of missing years on my NI record when I was abroad. HMRC received the payments in early March and informed DWP. Nearly three months later DWP have not updated my pension to take into account the extra years.
Is this wait normal or is this just another blockage in the Civil Service post COVID?

I paid for 2 missing years in Jan 2023.  The money was finally credited to my NI record some weeks later on 5 March.  I'm also awaiting for the DWP to update my pension.  I've contacted DWP on a number of occasions (5 times by phone, once by letter), each time the person at the DWP who answers the phone call state they will put through an urgent request to get my pension updated. However, I've heard nothing.  My conclusion is that the people at the DWP customer services section have a prepared script which tries to be helpful. However, I would rather they were truthful and admit that the DWP is overwhelmed and the updates will take months rather than a couple of weeks.  Given the latest extension to the deadline, clearly they are far behind with the updates.