N.I. Voluntary Contributions Calculation

6 Posts

I retired in 2011 on an Occupational Final Salary Pension (contracted out) since when I have not made any further NI payments. I'm aware that it's possible to pay some additional contributions to increase my NSP however like many others I have been unable to contact the Future Pensions Team to explore my options.
Which years shortfalls can I buy back ie only post 2016, pre 2016 or any?
What would it cost in total to maximize my NSP?
When would be the best time to buy back contributions – should I wait until closer to my state pension age?
In practical terms how do I go about buying back contributions – is the only route through the Future Pensions Centre?
Estimate based on your National Insurance record up to 5 April 2022
£148.32 a week
Forecast if you contribute until 5 April 2027
£174.77 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
You have:
36 years of full contributions (All Pre 2016 – No Post 2016 contributions)
5 years to contribute before 5 April 2027
10 years when you did not contribute enough
COPE estimate is £78.41 a week
Years with no NI contributions and cost of shortfalls
2012-13 until 2019-20 - £824.20 for each year
2020-21 - £795.60
Thanks for bearing with me.
If anyone can help the questions I have are-
Am I entitled to pay for previous years contributions even though I was in a “contracted out” occupational pension?
If yes to the above, how much extra NSP would I get for each year of additional voluntary contributions?Which years shortfalls can I buy back ie only post 2016, pre 2016 or any?
What would it cost in total to maximize my NSP?
When would be the best time to buy back contributions – should I wait until closer to my state pension age?
In practical terms how do I go about buying back contributions – is the only route through the Future Pensions Centre?
The following information is from my State Pension Summary
You can get your State Pension on 21 September 2027
You need to continue to contribute National Insurance to reach your forecast Estimate based on your National Insurance record up to 5 April 2022
£148.32 a week
Forecast if you contribute until 5 April 2027
£174.77 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
You have:
36 years of full contributions (All Pre 2016 – No Post 2016 contributions)
5 years to contribute before 5 April 2027
10 years when you did not contribute enough
COPE estimate is £78.41 a week
Years with no NI contributions and cost of shortfalls
2012-13 until 2019-20 - £824.20 for each year
2020-21 - £795.60
2021-22 – 800.80
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See
https://www.gov.uk/pay-voluntary-class-3-national-insurance/by-post#:~:text=Pay voluntary Class 3 National,through the post - GOV.UK
P6 here (booklet produced to coincide with introduction of NSP 6/4/16) may be of interest.
https://www.dpf.org.uk/explorer/files/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf
Pay voluntary Class 3 National Insurance: Direct Debit - GOV.UK (www.gov.uk)
A couple of notes;
1 - That link has the current year as 2022-23, it's so late in the tax year now they'd set one up to start for next year 2023-4
2. Although the DD is monthly, they take for whole weeks at a time - so (I think) four weeks in April and May and then five weeks in June (or possibly 5/4/4, I can;t remember the order).
You just need to remember to cancel the direct debit when yo uhave the requisite number of years ......