Voluntary NI contributions - No brainer?

p00hsticks

Perksy5 said:

I dont know if this is common knowledge but just spoke to Future Pension service about whether or not I should buy 2 of my cheapest years that are currently not filled.
I need 30 more years of contributions, so I was looking to shave some time off.
I noticed that they are due to increase in price April 5th 2023 and the agent said they won't increase in price, they'll be gone forever.
So if people are looking to repay any years from 2016 to 2006 apparently you need to do before April 5th 2023, FYI.
Bit of a bummer as my sharesave matures in November but maybe I'll borrow or use some savings in the short term just to get those 2 years over the line and !!!!!! the other 5 (other 5 are over £800ea I can't afford atm).

It's always worth reiterating, but it is common knowledge, on these boards at least, and I believe Martin Lewis has been publicising it too, hence the current rush and resulting long delays for people trying to get in touch with the Future Pensions Service for advice and HMRC to make the payments.

Normally you can only pay voluntary NI retrospectively for the past six years. This deadline was temporarily extended after the introduction of the new State Pension in 2016 to allow people to fill in past gaps back as far as 2006 (this was because the nSP introduced a new rule that you needed at least ten full NI years to be entitled to any state pension at all, and this allowed people to go back and buy them if they didn't already have them). The temporary extension ends this April (April 5th 2023) after which it reverts back to the usual six year deadline.

p00hsticks

molerat said:

p00hsticks said:

Cottage_Economy said:

Can someone check my understanding of something please.

My husband retired at 60 in 2021 with 37 years of full contributions. On checking his record it says he has a part year for 2021/22  and can make up the shortfall by paying £277.20. 

The current estimate of his state pension based on his National Insurance record up to 5 April 2022 is £181.35 a week

The forecast if he contributes another year before 5 April 2028 will be £185.15 a week, the maximum he can get.

Does that mean if I complete this 2021/22 record (i.e. one more year) he will get the full state pension?

I believe so - but if so there should also be a line in the forecast to say that there are gaps available to fill. Is there ?

I suspect you may be referring to the "You can improve your forecast" statement which will only be there if you cannot reach the full amount going forward.

Thanks - that makes sense

Cottage_Economy

p00hsticks said:
I believe so - but if so there should also be a line in the forecast to say that there are gaps available to fill. Is there ?

In the list of years there's only one that is partly filled after 1995 and that is the 20/21 year. 

fly-catchers

Just double checking that once you have your 18 digit number. You can do a bank transfer to HMRC NI Contributions with the 18 digit number as the reference and the amount. In my case £800.80. You don't need to do anything else? Do they send a receipt or do you just wait the 6 weeks the adviser said before it gets added. 

p00hsticks

fly-catchers said:

Just double checking that once you have your 18 digit number. You can do a bank transfer to HMRC NI Contributions with the 18 digit number as the reference and the amount. In my case £800.80. You don't need to do anything else? Do they send a receipt or do you just wait the 6 weeks the adviser said before it gets added. 

No they don't send a receipt. You just wait and chase up if your record hasn't been updated after 6 weeks. 

Sea_Shell

I had an email confirmation that I'd paid.

I used the pull payment, rather than a push.   ie I put my bank details in their website and they then took the money.

fly-catchers

Just have to wait!

gamston

hi folks, just an update how i got on
was on the phone to the Pensions people for 40min before they answered, but once call was answered the lady at the pension desk told me all the stuff then she told the HMRC man and put me thou to him he also sorted me out
so its a long wait but the folks there do try to help

jem16

gamston said:

hi folks, just an update how i got on
was on the phone to the Pensions people for 40min before they answered, but once call was answered the lady at the pension desk told me all the stuff then she told the HMRC man and put me thou to him he also sorted me out
so its a long wait but the folks there do try to help

So what did they actually tell you? How many years did you require?

It might help others in a similar position.

gamston

jem16 said:

gamston said:

hi folks, just an update how i got on
was on the phone to the Pensions people for 40min before they answered, but once call was answered the lady at the pension desk told me all the stuff then she told the HMRC man and put me thou to him he also sorted me out
so its a long wait but the folks there do try to help

So what did they actually tell you? How many years did you require?

It might help others in a similar position.

told i could pay for 6 years, £4893.20  it would add £30 something to pension, (by pension folks) she then transffered me to HMRC the guy there went though my details and gave me 18 digit code to use on the pay online system
he said as I'm close to getting pension i need to ring the 0300 number in couple of weeks to ensure the moneys in the account