Checking my understanding of SP eligibility and timing of paying NI top ups

Chewbecca

My forecast on gov.uk says I can get my SP in 2039

My forecast is £185.15 pw.
I need to continue to contribute NI to reach my forecast.

estimate based on NI record to 5 April 2022 £167.80 pw
forecast if I contribute another 4 years before 5 April 2039 is £185.@5 pw

I have 34 years of full contributions 
17 years to contribute before April 2039
I have no gaps in my record.

( I was contracted out in the past - DB pension).

The situation now
I’m stopping work in Feb 23. I’ll have paid enough NI to complete the 22/23 year. I’m not certain if I will work again between 2023 and 2039.

I’m thinking if I do work, the NI will be topped up via that. If I do not, I would be wise to pay 3 more years to get to a full SP. 

Question
Am I correct thinking:
- that I need to pay 3 more years to get a full SP (not the 17 mentioned)
- that I can wait until I’m around 66 and, if still incomplete, I will be able to pay to complete my record at that time?

Many thanks.

Dazed_and_C0nfused

It's four years including the current one.

Just be mindful that if you opt to make the voluntary payments the fourth year will only add the final £1.48/week.

Still beneficial but not quite the amazing value getting £5.29/week each of the first three years will add.

tacpot12

You would be able to pay when you are 66, but the rate of NI you pay will be whatever it is at the time you pay it. If you pay in March 2026, you will pay the NI rates for 2023-24, 2024-25, 2025-26.

If NI rates track inflation, there is no real difference, but NI rates continue to increase, you might regret not having paid them as early as possible. Of course, if you learn that you are going to die before you can draw your state pension, you might regret having paid up-front. 

Also, I would recommend paying all the NI you need to at least 12 months before you want to draw on your state pension. This allows you to check that the contributions have been credited to your NI record, and deal with any problems if they have not. 

Chewbecca

Thanks both. I didn’t realise the final year was less lucrative than the others so that’s good to know.

I can live with the risk of the cost increasing. 

I guess I was just worried that it wouldn’t be possible to top up at that point or that I had misunderstood the gap.

Dazed_and_C0nfused

Post 2016 years add £5.29/week but in your situation you cannot exceed £185.15/week so it effectively caps the fourth and final year.