Only contribute a few more years of NI to get full state benefit?

GunJack

wotsmyname said:

 Any NI paid beyond six years will not reap any benefits?

Not in State Pension terms, but there are other benefits you may be entitled to if, say, you lose your job, which may depend on having enough NI in the preceeding couple of years in order to qualify, plus NI helps fund NHS, etc. which you may need to use, especially as you get older.. 

Dazed_and_C0nfused

wotsmyname said:

Thanks p00hsticks - appreciate you taking the time to explain.

So as it stands, if my circumstances change, I could work at least a further five full years to be able to qualify for the full state pension, or I could voluntarily pay it in the future?  Any NI paid beyond six years will not reap any benefits?

You may be correct but your figures suggest otherwise.

In your original post you said you had accrued around £150.  And this means you should need 7 years to reach £185.15.

So either you massively rounded the £150 or the 5 years is wrong as you would need to have accrued nearly £160 to only need 5 years (@ £5.29/year).

Checking my HMRC account, my state pension forecast (for sometime in 204x) estimates my pension to be around £150 based on contributions to the most recent tax year for the forecast. It then goes on to say I'm on track to get the full state pension (currently £185 and based on current law) if I contribute another 5 years of NI before 204x.

p00hsticks

wotsmyname said:

Thanks p00hsticks - appreciate you taking the time to explain.

So as it stands, if my circumstances change, I could work at least a further five full years to be able to qualify for the full state pension, or I could voluntarily pay it in the future?  Any NI paid beyond six years will not reap any benefits?

The number in your initial post was a bit vague, and the combination of £150 and being just five years short doesn't quite tally.

Assuming your forecast says you are currently entitled to exactly £150, then you are £35.15 short of the maximum £185.15 a week. Either working or paying voluntary contributions for a further six years would add 6 x £5.29 = £31.74 to that amount taking you to £181.74, and a seventh year would add the final £3.41 to take you to the maximum.

Once you reach the maximum any additional years earned will not add any benefit, but you still need to pay NI if in employment, until you reach State Pension age.

wotsmyname

Thanks Dazed_andC0nfused and p00hsticks.

Yes - the figure is ~£160.