State Pension Gamble

Gummomarx

I'm toying with the idea of paying £4069 to buy extra NI contributions to get me from the projected £155.95pw to £182.40pw - (£5.29 x 5 years).  Realising that £5.29 after tax will be worth £4.23, I will hopefully get my £4069 back and start to move into profit if I survive to within 4 months of my 70th birthday.

Anyone recommend any decent fortune-tellers?

NedS

You are purchasing longevity insurance in case you should live past 70. The price is great, and if you die before 70 you will not care. Sounds like a good deal to me.

Audaxer

It's a great deal, especially as the £5.29 per week for each extra year will increase by 10.1% in April, and hopefully keep increasing with inflation in future years.

Silvertabby

I've bought 4 years.  No crystal balls, but I'm fit and healthy and - as long as I dodge that No 13 bus - hope to live long enough to enjoy a grand profit on my investment.

diystarter7

I would not bother at all. However, we do have other income and savings to fall back on if I'm lucky enough to live another 10 years - just over 60 atm.

comeandgo

Watch you don’t inadvertently take yourself out of being allowed to claim pension credit payments.  

p00hsticks

comeandgo said:

Watch you don’t inadvertently take yourself out of being allowed to claim pension credit payments.  

Good point, but the fact that the OP seems to be expecting to pay tax after state pension age would suggest that they are expecting some income other than their state pension, and so unlikely to be eligible for Pension Credit.

p00hsticks

diystarter7 said:

I would not bother at all. However, we do have other income and savings to fall back on if I'm lucky enough to live another 10 years - just over 60 atm.

Your choice, but boosting your state pension to the max by making voluntary contributions if necessary is an incredibly good investment, jsut so long as you live to seventy - you'd have to look a very long way to find a better return for your money.

MX5huggy

Use the ONS life expectancy calculator. 

https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/articles/lifeexpectancycalculator/2019-06-07

To reassure you that you can expect to get to your mid eighties. 

Gummomarx

comeandgo said:

Watch you don’t inadvertently take yourself out of being allowed to claim pension credit payments.  

I already have a works pension and savings so I'm well out of that range anyway.

Gummomarx

p00hsticks said:

comeandgo said:

Watch you don’t inadvertently take yourself out of being allowed to claim pension credit payments.  

Good point, but the fact that the OP seems to be expecting to pay tax after state pension age would suggest that they are expecting some income other than their state pension, and so unlikely to be eligible for Pension Credit.

Yip - on works pension already.