Voluntary NI contributions - No brainer?

fly-catchers

Do they tell you the 18 figure number over the phone or is it emailed to you?

RG2015

fly-catchers said:

Do they tell you the 18 figure number over the phone or is it emailed to you?

Over the phone. There is a thread from a while back showing how it is worked out. However digit no.18 is a mystery, probably a check digit. I will see if I can find it.

Here is a link.

https://forums.moneysavingexpert.com/discussion/5663729/voluntary-class-3-ni-contributions-how-to-pay/p1

Sea_Shell

fly-catchers said:

Do they tell you the 18 figure number over the phone or is it emailed to you?

Over the phone for me too.

Didn't think to ask if they could email it. 

davidr1964

I hope I am not hijacking this thread by asking a question.

I have checked my state pension, and have £179.24 per week at present.

I need to contribute for another two years to qualify for the maximum I can get sum of £185.15 - including this year.

If this year adds another £5.29 to my state pension, that leaves me £0.62p short at the end of March 2023.

If I retired at the end of December 2023, would this make the voluntary purchase amount approximately £206? (ie. a quarter of the full year sum)

Thanks.

p00hsticks

davidr1964 said:

I hope I am not hijacking this thread by asking a question.

I have checked my state pension, and have £179.24 per week at present.

I need to contribute for another two years to qualify for the maximum I can get sum of £185.15 - including this year.

If this year adds another £5.29 to my state pension, that leaves me £0.62p short at the end of March 2023.

If I retired at the end of December 2023, would this make the voluntary purchase amount approximately £206? (ie. a quarter of the full year sum)

Thanks.

It depends on your earnings (or more specifically how much NI you'll pay) between April and December 2023. Depending on your payment frequency and the salary you're on you may find that the year can already be counted as full by the time you leave in December  - it isn;t necessary to record an NI payment for every week/month of the year, and any shortfall isn't necessarily proprtinoal to the number of weeks/months missing.  

I'm assuming that when you talk about retiring at the end of December 2023, you are just referring to quitting work, rather than that being when you reach State Retirement age, as the tax year in which you achieve the latter won't count towards your State Pension calculation anyhow, so your question would be moot.

davidr1964

p00hsticks said:

davidr1964 said:

I hope I am not hijacking this thread by asking a question.

I have checked my state pension, and have £179.24 per week at present.

I need to contribute for another two years to qualify for the maximum I can get sum of £185.15 - including this year.

If this year adds another £5.29 to my state pension, that leaves me £0.62p short at the end of March 2023.

If I retired at the end of December 2023, would this make the voluntary purchase amount approximately £206? (ie. a quarter of the full year sum)

Thanks.

It depends on your earnings (or more specifically how much NI you'll pay) between April and December 2023. Depending on your payment frequency and the salary you're on you may find that the year can already be counted as full by the time you leave in December  - it isn;t necessary to record an NI payment for every week/month of the year, and any shortfall isn't necessarily proprtinoal to the number of weeks/months missing.  

I'm assuming that when you talk about retiring at the end of December 2023, you are just referring to quitting work, rather than that being when you reach State Retirement age, as the tax year in which you achieve the latter won't count towards your State Pension calculation anyhow, so your question would be moot.

Oh, that is very interesting. Thank you. I'll be 59 in December 2023 and am on the Civil Service 'classic' pension scheme. I know i should 'grit it out' until December 2024 when i'll be 60 and with 40 years service, but I'm not sure I'll be able to!

p00hsticks

davidr1964 said:

p00hsticks said:

davidr1964 said:

I hope I am not hijacking this thread by asking a question.

I have checked my state pension, and have £179.24 per week at present.

I need to contribute for another two years to qualify for the maximum I can get sum of £185.15 - including this year.

If this year adds another £5.29 to my state pension, that leaves me £0.62p short at the end of March 2023.

If I retired at the end of December 2023, would this make the voluntary purchase amount approximately £206? (ie. a quarter of the full year sum)

Thanks.

It depends on your earnings (or more specifically how much NI you'll pay) between April and December 2023. Depending on your payment frequency and the salary you're on you may find that the year can already be counted as full by the time you leave in December  - it isn;t necessary to record an NI payment for every week/month of the year, and any shortfall isn't necessarily proprtinoal to the number of weeks/months missing.  

I'm assuming that when you talk about retiring at the end of December 2023, you are just referring to quitting work, rather than that being when you reach State Retirement age, as the tax year in which you achieve the latter won't count towards your State Pension calculation anyhow, so your question would be moot.

Oh, that is very interesting. Thank you. I'll be 59 in December 2023 and am on the Civil Service 'classic' pension scheme. I know i should 'grit it out' until December 2024 when i'll be 60 and with 40 years service, but I'm not sure I'll be able to!

In that case there is no urgency.
I suggest you wait until your State Pension forecast reflects your NI record for 2023-24 (probably sometime in Summer/Autumn 2024) and then see
a) if the 2023-24 year is recorded as full
b) if not full, how much you'd need to pay to make it full
and then
c) decide if it's worth paying it for the extra 62p or so it would add to your weekly pension.  

Merlin139

I have just rung up to get my 18 digit number and was hanging on for 50 minutes.

The lovely lady I spoke too gave me the following advice try not to ring on either a Monday or a Friday and best to ring at 08:00 

Dazed_and_C0nfused

davidr1964 said:

p00hsticks said:

davidr1964 said:

I hope I am not hijacking this thread by asking a question.

I have checked my state pension, and have £179.24 per week at present.

I need to contribute for another two years to qualify for the maximum I can get sum of £185.15 - including this year.

If this year adds another £5.29 to my state pension, that leaves me £0.62p short at the end of March 2023.

If I retired at the end of December 2023, would this make the voluntary purchase amount approximately £206? (ie. a quarter of the full year sum)

Thanks.

It depends on your earnings (or more specifically how much NI you'll pay) between April and December 2023. Depending on your payment frequency and the salary you're on you may find that the year can already be counted as full by the time you leave in December  - it isn;t necessary to record an NI payment for every week/month of the year, and any shortfall isn't necessarily proprtinoal to the number of weeks/months missing.  

I'm assuming that when you talk about retiring at the end of December 2023, you are just referring to quitting work, rather than that being when you reach State Retirement age, as the tax year in which you achieve the latter won't count towards your State Pension calculation anyhow, so your question would be moot.

Oh, that is very interesting. Thank you. I'll be 59 in December 2023 and am on the Civil Service 'classic' pension scheme. I know i should 'grit it out' until December 2024 when i'll be 60 and with 40 years service, but I'm not sure I'll be able to!

How is that possible?

Didn't you move to Alpha from April 2022?

davidr1964

No, the scheme I am in is a "by analogy" scheme to the PCSPC. It did didn't go to Alpha in 2015 or April 2022, and it's not going to until "around 2024/25".