National Insurance topping up missing years

molerat

Too much information

As she already has 35 pre 2016 years any more cannot add value.  She must buy extra from the post 2016 available years.  That cheap 2012-13 is not viable to purchase, it will add nothing.

4 years needed to reach the max £185.15. No panic to buy but prices will be going up in April for the majority of past years to £907.40.  2021-22 & 2022-23 will be staying at their current £800.80 / £824.20

molerat

Janie2008 said:

2012-2013 is only £79 so worth buying I think as you only have until April to do so. It will get you an extra £4.74 a week.

Sorry, incorrect.  2012-13 cannot add to their pension amount.  The devil is in the detail.

Janie2008

Oh yes of course. I didn't see that.

Janie2008

I have a question. A pre 2016 year adds £4.73 and a post 2016 adds £5.29. Does the post 2016 add more if the state pension increases? So when the state pension rises in April does it add more than £5.29 or stay the same? If it increases is it worth buying a pre 2016 year if you will have plenty of post 2016 years to buy which add more (though will cost more to buy)? I can buy a pre 2016 year for £630 and I'm not sure whether to. I have 18 pre 2016 years at the moment.

Janie2008

molerat said:

Too much information

As she already has 35 pre 2016 years any more cannot add value.  She must buy extra from the post 2016 available years.  That cheap 2012-13 is not viable to purchase, it will add nothing.

4 years needed to reach the max £185.15. No panic to buy but prices will be going up in April for the majority of past years to £907.40.  2021-22 & 2022-23 will be staying at their current £800.80 /

How do you know it's going up to £907.40 by the way?

MACKEM99

molerat said:

Too much information

As she already has 35 pre 2016 years any more cannot add value.  She must buy extra from the post 2016 available years.  That cheap 2012-13 is not viable to purchase, it will add nothing.

4 years needed to reach the max £185.15. No panic to buy but prices will be going up in April for the majority of past years to £907.40.  2021-22 & 2022-23 will be staying at their current £800.80 /

So she needs to buy 4 years post 2016. The cheapest ones of course 😃

p00hsticks

Janie2008 said:

a post 2016 adds £5.29. Does the post 2016 add more if the state pension increases? So when the state pension rises in April does it add more than £5.29 or stay the same? 

Each post-2016 adds 1/35th of the new State Pension maximum amount, So currently £5.29 (£185.15 / 35), but when the maximum rises in April the worth of each year goes up correspondingly.

molerat

MACKEM99 said:

molerat said:

Too much information

As she already has 35 pre 2016 years any more cannot add value.  She must buy extra from the post 2016 available years.  That cheap 2012-13 is not viable to purchase, it will add nothing.

4 years needed to reach the max £185.15. No panic to buy but prices will be going up in April for the majority of past years to £907.40.  2021-22 & 2022-23 will be staying at their current £800.80 /

So she needs to buy 4 years post 2016. The cheapest ones of course 😃

Yes ............................

molerat

Janie2008 said:

molerat said:

Too much information

As she already has 35 pre 2016 years any more cannot add value.  She must buy extra from the post 2016 available years.  That cheap 2012-13 is not viable to purchase, it will add nothing.

4 years needed to reach the max £185.15. No panic to buy but prices will be going up in April for the majority of past years to £907.40.  2021-22 & 2022-23 will be staying at their current £800.80 /

How do you know it's going up to £907.40 by the way?

From the Autumn Statement when the NI rates and thresholds were announced.

molerat

Janie2008 said:

I have a question. A pre 2016 year adds £4.73 and a post 2016 adds £5.29. Does the post 2016 add more if the state pension increases? So when the state pension rises in April does it add more than £5.29 or stay the same? If it increases is it worth buying a pre 2016 year if you will have plenty of post 2016 years to buy which add more (though will cost more to buy)? I can buy a pre 2016 year for £630 and I'm not sure whether to. I have 18 pre 2016 years at the moment.

From April a pre 2016 year will be worth £5.21 and a post £5.82 .  But that is not how the calculation works.  Adding pre 2016 years recalculates the starting amount using £3.98 & £4.45 as the COPE is set at the 2016 amount.  A pre 2016 year can be worth £5.29 if the starting amount is based on the new calculation and can switch from old to new depending on the COPE amount, S2P amount and number of years purchased. The devil is in the exact detail of your forecast.