Buy NI years or invest in SIPP Stocks and Shares

Section62

IanManc said:

Section62 said:

A future government could reduce the amount of pension paid (in specific circumstances) by simply making a policy decision to alter the arrangements (e.g. no 'state pension' for anyone with savings above £'X'k)

But that would be quite unlikely if that government had any desire to get elected again, seeing the proportion of elderly people in the population is increasing and pensioners are the demographic most likely to vote. It would be electoral suicide.

I guess it depends on individual perspectives based on the time to go before state pension age.

There are some policies, such as banning the sale of ICE vehicles (and new installs of gas boilers) which would have been unthinkable electoral suicide not so long ago.  Now these look like they aren't radical enough.

I don't think it would necessarily be electoral suicide to remove some amount of benefits/state pensions from older people who are wealthier.  (Free Over-75's TV licenses anyone?)  To some extent it depends on whether there are sufficient younger people (with no hope of getting equivalent pensions themselves) deciding they don't want to subsidise older wealthier people, and there perhaps being a populist left-leaning party wishing to appeal to those voters.

I take Albermarle's point about courting the grey vote in recent times.  But then we've had a long run of 'blue' government, and that won't necessarily last.

I'm in a position where I could buy some years to fill gaps - I haven't (yet), because I'm not sufficiently confident there will be a state pension worth having when my time comes.  Everyone has to make their own judgement though.

Daliah

You could say that state pension is already means tested to some degree, as it is taxable income, and many people's tax bill goes up once they draw their state pension. I am sure that in a few decades from now, some clever Chancellor could swing it so it wouldn't be considered unacceptable. May be state pension, and other benefits, will by that stage be entirely replaced with a Universal Basic Income. 

In the meantime, I tend to agree, if you expect to end up with around 35 NI years by the time you get to 66 / 67 / 68, there's no point making voluntary contributions now.

However, if you are within a few short years of your state pension age, reasonably expect to live for 3-4 years after, and are short of NI years / have gaps going back to 2006/7, it is well worth looking at filling your NI years. Voluntary NICs are an obvious option in this case, but also check whether you would qualify for NI credits.

Bigwheels1111

If you were self employed for any of the years, you can pay £165 ish for a years Ni top up.
Friends wife was missing / needed 10 years worth. 

As she made bangles and sold them at boot fairs, she was self employed but as profits were under £1000 a year she did not 
need to register as self employed.
£1650.00 ish for 10 years was a good deal.

Albermarle

 To some extent it depends on whether there are sufficient younger people (with no hope of getting equivalent pensions themselves) deciding they don't want to subsidise older wealthier people, and there perhaps being a populist left-leaning party wishing to appeal to those voters. I take Albermarle's point about courting the grey vote in recent times.  But then we've had a long run of 'blue' government, and that won't necessarily last.

It is not just that older people all vote blue ( although most do ) but the fact they vote in such large numbers. The voter turnout of over 55's is significantly higher than under 55's. Plus there is a growing proportion of older people to younger people. So many policies, not just pensions, tend to favour the older group. Although it is probably storing up trouble for the future.