NI Contributions Advice 3 February at 12:38PM edited 3 February at 12:38PM in Pensions, annuities & retirement planning 14 replies 279 views

123imp

Hi Everyone, and thanks in advance for your help.

I've been doing long term financial planning over the last 2 weeks, and I've got to my NI contributions record. I currently have 36 years left to contribute.

Please see my record below, could anyone advise on where I should make voluntary contributions to make up shortfall?

Dazed_and_C0nfused

How much State Pension have you accrued so far?  Not the £185.15 shown first on your forecast, there will be a figure under that.

And don't you expect to reach £185.15 naturally over the next 36 years?

molerat

What is your current accrued amount to April 2022 ?

With 35 years left to go and likely needing somewhere around another 26 there is no real need.

Voluntary NI is like a reverse life insurance, don't make it to retirement you get nothing so you could consider any extra price you pay buying later as a sort of premium.

What are your intentions with respect to working from now on ?

I personally would only likely consider 10-11 and 12-13 as they are cheap enough but if you are working you have enough years in front of you to reach the maximum with years to spare.

123imp

Dazed_and_C0nfused said:

How much State Pension have you accrued so far?  Not the £185.15 shown first on your forecast, there will be a figure under that.

And don't you expect to reach £185.15 naturally over the next 36 years?

I'm a little confused as all I can see on the site is "9 years full contributions" at the top.

123imp

molerat said:

What is your current accrued amount to April 2022 ?

With 35 years left to go and likely needing somewhere around another 26 there is no real need.

Voluntary NI is like a reverse life insurance, don't make it to retirement you get nothing so you could consider any extra price you pay buying later as a sort of premium.

What are your intentions with respect to working from now on ?

I personally would only likely consider 10-11 and 12-13 as they are cheap enough but if you are working you have enough years in front of you to reach the maximum with years to spare.

To be honest, I'm hoping to retire at around 50 - with maybe a little consulting here and there.

If I was to come up short on the required amount of years, would it have been cheaper to have bought 10-11 and 12-13 now.

Marcon

123imp said:

Dazed_and_C0nfused said:

How much State Pension have you accrued so far?  Not the £185.15 shown first on your forecast, there will be a figure under that.

And don't you expect to reach £185.15 naturally over the next 36 years?

I'm a little confused as all I can see on the site is "9 years full contributions" at the top.

You already have 9 full years as shown on the screenshots you've pasted, and the potential to add another 36 if you continue to work.

Dazed is making the point that if you pay voluntary contributions now, you could be wasting your money because if you go on working, you'll have enough 'full years' to get a full state pension by the time you retire.

molerat

123imp said:

Dazed_and_C0nfused said:

How much State Pension have you accrued so far?  Not the £185.15 shown first on your forecast, there will be a figure under that.

And don't you expect to reach £185.15 naturally over the next 36 years?

I'm a little confused as all I can see on the site is "9 years full contributions" at the top.

If you only have 9 years then it is possible you do not have a pension forecast as yet as 9 years is not enough for any pension, you need 10 minimum.

Dazed_and_C0nfused

123imp said:

Dazed_and_C0nfused said:

How much State Pension have you accrued so far?  Not the £185.15 shown first on your forecast, there will be a figure under that.

And don't you expect to reach £185.15 naturally over the next 36 years?

I'm a little confused as all I can see on the site is "9 years full contributions" at the top.

That's your NI record, in your Personal Tax Account there will hopefully be a State Pension section showing your forecast.

molerat

123imp said:

molerat said:

What is your current accrued amount to April 2022 ?

With 35 years left to go and likely needing somewhere around another 26 there is no real need.

Voluntary NI is like a reverse life insurance, don't make it to retirement you get nothing so you could consider any extra price you pay buying later as a sort of premium.

What are your intentions with respect to working from now on ?

I personally would only likely consider 10-11 and 12-13 as they are cheap enough but if you are working you have enough years in front of you to reach the maximum with years to spare.

To be honest, I'm hoping to retire at around 50 - with maybe a little consulting here and there.

If I was to come up short on the required amount of years, would it have been cheaper to have bought 10-11 and 12-13 now.

Those 2 years are very cheap so could help with your advanced planning meaning you will not need as many in the future but they will no longer be available after April 5th this year.  The rest of the part years are, IMO, a bit too expensive to consider this early on.  Just get what you can in future and catch up if necessary nearer retirement.

123imp

molerat said:

123imp said:

molerat said:

What is your current accrued amount to April 2022 ?

With 35 years left to go and likely needing somewhere around another 26 there is no real need.

Voluntary NI is like a reverse life insurance, don't make it to retirement you get nothing so you could consider any extra price you pay buying later as a sort of premium.

What are your intentions with respect to working from now on ?

I personally would only likely consider 10-11 and 12-13 as they are cheap enough but if you are working you have enough years in front of you to reach the maximum with years to spare.

To be honest, I'm hoping to retire at around 50 - with maybe a little consulting here and there.

If I was to come up short on the required amount of years, would it have been cheaper to have bought 10-11 and 12-13 now.

Those 2 years are very cheap so could help with your advanced planning meaning you will not need as many in the future but they will no longer be available after April 5th this year.  The rest of the part years are, IMO, a bit too expensive to consider this early on.  Just get what you can in future and catch up if necessary nearer retirement.

That's great, thanks for the advice.

123imp

Dazed_and_C0nfused said:

123imp said:

Dazed_and_C0nfused said:

How much State Pension have you accrued so far?  Not the £185.15 shown first on your forecast, there will be a figure under that.

And don't you expect to reach £185.15 naturally over the next 36 years?

I'm a little confused as all I can see on the site is "9 years full contributions" at the top.

That's your NI record, in your Personal Tax Account there will hopefully be a State Pension section showing your forecast.

Ah right, apologies, I've found it now...