National Insurance topping up missing years

Janie2008

So will it cause any problem if I now ring up HMRC for a code to pay another pre 2016 year? I got a code on Friday to pay a year and have already done so. I know I need a new code.

Janie2008

p00hsticks said:

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.

How does it work with the pre 2016 years?

molerat

Janie2008 said:

p00hsticks said:

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.

How does it work with the pre 2016 years?

Once the pre 2016 year is added to your starting amount it is no longer "a year" but becomes a £ amount that increases with inflation each year.  The value is only indicative of how much it will add to the pension at that particular later moment in time.  As I said in my earlier post a pre 2016 year is actually adding £3.98 (or maybe £4.45) to your 2016 starting amount which is increased with inflation from there.

jem16

pinnks said:

The reference is unique, so best not to try using it again..  If you look at it, it starts with 2 digits (either 11 or 60 I think), then has the amount you are paying, then the numbers from your NI number a bit mixed up and the rest is a "random" number designating I know not what but it changes each time you get a reference. 

You're correct in that it does contain the amount you're paying so if one year it appears to be unique.

However I have known people to use the original 18 digit reference number for a different year just to ensure payment is made on time. It worked fine although you may need to call HMRC later to get it allocated to the specific year.

TheRealBigEasy

Could anyone help with this question?

The gov website states "You’ll need 35 qualifying years to get the full new State Pension."
If I look at my record I see

Estimate based on your National Insurance record up to 5 April 2022

£160.06 a week

Forecast if you contribute until 5 April 2025

£175.93 a week

You can improve your forecast

You have shortfalls in your National Insurance record that you can fill and make count towards your State Pension.

The most you can increase your forecast to is

£185.15 a week

but I also see that I have

• 44 years of full contributions
• 3 years to contribute before 5 April 2025
• 3 years when you did not contribute enough

My question is: If I only need 35 qualifying years to receive the full pension, and I already have 44 full years, why is my estimate lower than the full pension.


Thanks for any help
Jon Lacey

molerat

Been asked hundreds of times on here and the answer is that the government site does not say that you need 35.  Under the transitional rules you need whatever it takes.

The important thing now is which years are not full ?
Number of pre 2016 years full
Number of post 2016 years full
Any COPE amount shown
Years which show not full and prices

Janie2008

The number of years needed varies. It's only 35 for those who started paying national insurance from 2016. For everyone else it can be 30-45 years plus. It's generally those who have a public sector pension who need more years.

TheRealBigEasy

molerat said:

Been asked hundreds of times on here and the answer is that the government site does not say that you need 35.  Under the transitional rules you need whatever it takes.

The important thing now is which years are not full ?
Number of pre 2016 years full
Number of post 2016 years full
Any COPE amount shown
Years which show not full and prices

I'm full 1976-1977 up until 2015-2016
I'm full 2016-2017 up until 2018-2019

I'm not full 2019-2020 up until present day.

"Your COPE estimate is £109.03 a week"

2019-2020:

You have contributions from

National Insurance credits: 12 weeks

Pay a voluntary contribution of £634 by 5 April 2026. This shortfall may increase after 5 April 2023.

2020-2021:

You did not make any contributions this year

Pay a voluntary contribution of £795.60 by 5 April 2027. This shortfall may increase after 5 April 2023.

2021-2022:

You did not make any contributions this year

Pay a voluntary contribution of £800.80 by 5 April 2028. This shortfall may increase after 5 April 2024.

My retirement date is 26th Mar 2026

molerat

You are £25.09 short so need 5 years to get to the max £185.15.  4 years will give you £5.29 each  and the 5th £3.93. You have 3 years going forward and  3 spare years looking back. Buying back years is good value and will pay back gross in around 3 years, the actual payback depending on your tax situation.  Prices of voluntary contributions will be increasing in April. 21-22 will stay at that price until April 2024 but 20-21 will increase to £904.70 and 19-20 (part year) to £698.  22-23 will cost £824.20 until April 2025  and 23-24 will cost £904.70 until April 2026.