State Pensions NI Voluntary Contributions

PullingMyHairOut1

Hi - I have had my SP forecast when I reach SP age in a few months time. I want to buy back AVCs on my NI to boost my pensions by about £32 per week according to the figures I have.Trying to do so is a nightmare at the moment thanks to The Martin Lewis programme. You need to ring The DWP to get an 18 digit number to make the application and pay (online) - it takes a few minutes to get through the automated voice mail system and inevitably your are put on hold and asked to call back in a 'few days'. Other posts have commented on this frustration. There isn't a way you can do this online through the Gateway which should make the process easier. Suggestions from anyone please on who we could contact to achieve it? I think it should be simple enough to connect the DWP with HMRC?

molerat

An expensive system change  to cope with this once in a lifetime situation, much of which could have been avoided if people had been paying attention since this date was set in 2013, isn't going to happen.

Letter and cheque in the post if you are certain that the years you want to buy will add to your pension. https://www.gov.uk/pay-voluntary-class-3-national-insurance/by-post

PullingMyHairOut1

I think this will continue though for future as AVCs will still be needed for shortfalls in NI contributions in the future. The telephone method is overwhelmed because of the current deadline. Unfortunately I am not exactly sure of how much I have to pay and there are reservations about doing this by post without the 18 digit number.

xylophone

Unfortunately I am not exactly sure of how much I have to pay and there are reservations about doing this by post without the 18 digit number.

Current forecast to 5/4/22?

How many qualifying years at 5/4/16?

How many qualifying years 6/4/16 - 5/4/23?

Is a COPE amount shown?

PullingMyHairOut1

Sorry about late response - been busy. Thanks if you can help. 22/23 figure isn't available and think I can only claim the last 6 years and not 7?
£148.68 Forecast - most I can increase to is £180.42
37 years
0 -  took early retirement in 2012
COPE is £84.32

molerat

You can only add years 2016-17 and later, earlier will not add to your pension.

Something does not seem right with your numbers.  If you have 0 years 2016-17 and onwards and retire in the 2023-24 tax year that means there should be 7 years available, including 2022-23, and you should be able to get the max £185.15.  Do any of those gaps show as "checking" or something to that effect ?

2022-23 is £824.20 so if you are sending a cheque you can just include it or if phoning you can tell them you want to pay that as well, people have reported they are happy with doing that.

PullingMyHairOut1

Apologies I have 1 year not 0. I said that as the 22/23 sum was not on the forecast. Further investigation showed that 22/23 is the £824.20 you suggested. Again from what I have read the maximum is 6 years you can claim for and not 7 or is that because 22/23 wasn't available? If I can't get through to the phone number 0300 -200- 3500 next week I will pay the last 6 years from 22/23 and hope for the best. Thanks for your time molerat and xylophone.

molerat

So one of the years 2016-17 to 2021-22 is full ?

Then you only have 6 years, including 2022-23, that you can fill.

At the current time the buying back 6 years, which is the normal rule for NI purchases, is not relevant due to the transitional rule. You can buy back as far as 2006-07 but because of your personal history any year 2015-16 and earlier will not add to your pension.  That leaves a total of 7 years between 2016-17 and 2022-23 of which one is already full with 6 remaining to purchase. They will add 6 x £5.29 to your pension bringing it up to your maximum achievable £180.42.

p00hsticks

PullingMyHairOut1 said:

Again from what I have read the maximum is 6 years you can claim for and not 7 or is that because 22/23 wasn't available? 

There was a temporary extension to the 'can only go back six years' rule introduced as part of the new State Penson reforms in 2016.

As molerat says, at present you can make voluntary contributions back to 2006-7 although pre-2016 years won't necessarily boost your forecast.

 The extension deadline was to be 5th April this year, but the sudden demand as people became aware of it means it's been pushed back until July, after which it reverts to the six-year rule.

Audaxer

PullingMyHairOut1 said:

Apologies I have 1 year not 0. I said that as the 22/23 sum was not on the forecast. Further investigation showed that 22/23 is the £824.20 you suggested. Again from what I have read the maximum is 6 years you can claim for and not 7 or is that because 22/23 wasn't available? If I can't get through to the phone number 0300 -200- 3500 next week I will pay the last 6 years from 22/23 and hope for the best. Thanks for your time molerat and xylophone.

I think I'm right in saying that if the 6 years you are planning to pay are from 2017/18 onwards, there is not the same urgency needed as you have until 5 April 2024 to fill the 2017/18 gap.

PullingMyHairOut1

Thanks everyone again. The maths works out the same for the sum of additional contributions whether the starting point is 2016/17 or 2017/18 anyway. £5.29 x 6 = £31.74. The year 22/23 not making a 7th. Still worth doing just leaves me with a slight shortfall of the maximum £185.15 and I was curious why that target couldn't be reached. I will send them a cheque and 2.96 years before payback (not including increases). I tried the 0300 - 200 - 3500 just after 8.00am this morning went through 3 minutes or so of all my details and got cut off!
Hope the post might be useful to others.