Topping up National Insurance contributions is changing in two weeks — What should I do? Clueless!

ChrisTucker

Hello,

I'm completely clueless about the topic of pensions and National Insurance contributions. I've recently been told that it's something very important, and that it's changing significantly in two weeks. I was told that I need to "check my contributions" and "see if I need to top them up", as after two weeks I will no longer be able to top up the older years. From what I've read online, I also think I'm in something called a "hybrid system" and that this supposedly means topping may or may not give any benefit.

That's literally all I know. As the deadline is rapidly approaching, could anyone please help me out and explain what (if anything) I'm supposed to do? I'd really appreciate it. Thanks.

Below are some images showing what the government website says about my current status. What do?

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Thanks in advance.

Dazed_and_C0nfused

You have over 30 years ahead of you still to contribute.

Do you expect to add additional years through working, self employment or entitlement to NI credits?

Without knowing that it's impossible to say if buying earlier years would be sensible.

You might find learning about pensions is a valuable asset.

ChrisTucker

As the image might be a bit hard to read, here's a summary:

• I have 5x full years: 2004, 2005, 2006, 2020, and 2021
• I have 1x partial year: 2019
• I have 12x empty years: 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018

Thanks again.

ChrisTucker

Dazed_and_C0nfused said:

You have over 30 years ahead of you still to contribute.

Do you expect to add additional years through working, self employment or entitlement to NI credits?

Thanks a lot for responding! I'm not sure to be honest. I'm currently on Universal Credit for health reasons, and have been for the last couple of years. Before that I was just doing nothing, still for the health reasons but without being on Universal Credit because I didn't know it was a thing I could have access to. I hope my situation will change and I'll be able to work, and am currently taking steps towards that goal, but I don't know if/when anything will fruit from that.

Is there any reason not to top up the older years?

What about the year that's partially completed?

Dazed_and_C0nfused

ChrisTucker said:

Dazed_and_C0nfused said:

You have over 30 years ahead of you still to contribute.

Do you expect to add additional years through working, self employment or entitlement to NI credits?

Thanks a lot for responding! I'm not sure to be honest. I'm currently on Universal Credit for health reasons, and have been for the last couple of years. Before that I was just doing nothing, still for the health reasons but without being on Universal Credit because I didn't know it was a thing I could have access to. I hope my situation will change and I'll be able to work, and am currently taking steps towards that goal, but I don't know if/when anything will fruit from that.

Is there any reason not to top up the older years?

What about the year that's partially completed?

The main reason not to top them up would be that if you accrued sufficient years to reach your personal maximum (£185.15/week at current rates) then you would have wasted your money.

You may be accruing NI credits via your UC claim however there is a known issue at the moment where DWP aren't notifying HMRC timeously so your NI record may not actually be totally accurate.

If you were to pay some voluntary NI then 2019:20 would be the sensible one to buy first but again it could be that that year will end up being completed with NI credits when DWP get their act together. 

Were you working part year and claiming UC part year in 2019:20?

Aristotle67

ChrisTucker said:

Hello,

I'm completely clueless about the topic of pensions and National Insurance contributions. I've recently been told that it's something very important, and that it's changing significantly in two weeks. I was told that I need to "check my contributions" and "see if I need to top them up", as after two weeks I will no longer be able to top up the older years. 

I believe the deadline for topping up older years has been extended to 31 July, such has been the demand on the system in recent times. 

p00hsticks

ChrisTucker said:

Dazed_and_C0nfused said:

You have over 30 years ahead of you still to contribute.

Do you expect to add additional years through working, self employment or entitlement to NI credits?

Is there any reason not to top up the older years?

The fact that each one is going to cost over £800 to top up, when you have plenty of years ahead to reach the maximum anyhow, either through work or the credits you are currently getting via UC.

 Do you have that kind of money available ?

 P.S. You are wrong about the deadline being in two weeks time - it's been extended until July.