How to pay extra NI years

stuartmc_2

This is out of date as I am unable to get an up to date forecast now but the numbers I have from Feb 21 were :-

Estimate based on current contributions £164.54 a week

The most you can increase your forecast to is £175.20 a week

Years missing are all from 2010-11 up to 2020-21

molerat

£164.54 at Feb 21 increased at Apr 21 by 2.5% and Apr 22 by 3.5% is £173.88 today.  £185.15 - £173.88 = £11.27.  2 additional years would give an extra £10.58 giving you £184.46, a 3rd year would only give 69p so not worth buying.  With anything above a miniscule COPE amount from contracting out only post 2016 years would add additional benefit to your pension.

xylophone

To add further complication I am now past retirement age although not drawing my state pension yet as I have a private pension and work part time.

Re deferral

https://www.gov.uk/deferring-state-pension

Have you received an invitation to claim?

Re NI and Health and Social Care levy

https://www.litrg.org.uk/tax-guides/pensioners/what-national-insurance-do-i-pay-after-retirement

stuartmc_2

Thanks everybody sounds like you've saved me £824.20 as I was being advised to pay 3 years to get full entitlement.

molerat

stuartmc_2 said:

Thanks everybody sounds like you've saved me £824.20 as I was being advised to pay 3 years to get full entitlement.

That is the bit they don't actually tell you.  3 years will get you the full amount, it is just that the full amount is not much more than 2 will get you.

Your being past retirement age and deferred will make little difference to my calculations, all the figures will just be a bit smaller, but anything you pay for will only take effect from date of payment, it will not be backdated.

Dazed_and_C0nfused

stuartmc_2 said:

Thanks everybody sounds like you've saved me £824.20 as I was being advised to pay 3 years to get full entitlement.

You do actually need 3 years to reach the full standard new State Pension.

But the first two years add £5.00/week (at 2020:21 rates) and the third year just the final £0.66/week.

So not nearly as good an investment as the first two year 🙂