Buy extra years for pension ?

r3dc45r

I will qualify for my UK state pension at the end of next year. I currently have 33 qualifying years due to working abroad since 2006 so will get slightly less than the maximum. I can pay £1600 to top up my contributions which I calculate will give me an extra £1600 per year in my pension so a no brainer it seems. What happens to our married couples pension once my wife retires ( 4 years after me) assuming she has missing years also ? Would it be based on my full contribution, hers missing a few years or some kind of combination of both ?

af1963

There's no "married couple pension".  Your wife will have a separate pension in her own right (as long as she has enough years National Insurance to qualify) and the amount will be based on her actual contribution record.

So it's worth checking what she is due to receive, and whether it can be topped up in a similar way.

molerat

There is no such thing as a married couples pension, each gets their own pension based on their own contribution record.

How do you get £1600 annual pension (6 years of contributions) based on a £1600 contribution ?

What exactly do your forecasts show ?

Current £££.pp amount accrued up to April 2022
Number of pre 2016 NI years full
Number of post 2016 NI years full
Tax year you reach state retirement
Any COPE amount shown
Years which show not full and prices

r3dc45r

Current £££.pp amount accrued up to April 2022              £153.02 per week

Number of pre 2016 NI years full                                            33 years

Number of post 2016 NI years full                                          None

Tax year you reach state retirement                                       2024/25

Any COPE amount shown                                                          ?

Years which show not full and prices                                                                                   1986/87, 2006/7, 2007/8, 2008/9, 2009/10, 2012/3 and subsequent years

molerat

The COPE amount will be shown in a click link in the "you've been in a contracted out pension scheme" section.  Your figures point to you being contracted out at some stage.

r3dc45r

Your COPE estimate is £57.89 a week

r3dc45r

I can buy extra years at around £800 per year, so £1600 would increase weekly pension from £153 to £185. £32 per week or £1600 per year

TadleyBaggie

Not sure where you are getting the £1600 figure from. It usually just over £800 to buy class 3 years, so 2 years would increase your weekly pension probably by £10.58, or about £560 a year. 

We need the full details from your forecast, not the edit ones.

r3dc45r

Yes I can buy for about £800 per year.
I figured that 2 more years would take me to 35 complete years and allow me the max pension of £185 per week
Is this incorrect?

molerat

You need 7 years more contributions to reach the full £185.15.  6 will get you to £184.76 at £5.29 each, the 7th only adding 39p

Only years 2016-17 and later will add to yor pension.

You should be eligible to pay class 2 at around £160 per year for when you were working overseas.

https://www.gov.uk/government/publications/social-security-abroad-ni38

I figured that 2 more years would take me to 35 complete years and allow me the max pension of £185 per week

35 years is of no relevance for those with a pre 2016 history.

Your forecast likely shows a top figure of £163.60, a current amount of £153.02 and a maximum amount of £185.15 - correct ?

You need to make up the difference between the 2nd amount and the full amount, £185.15 - 153.02 / £5.29 = 6.1 or 7 full years.

p00hsticks

r3dc45r said:

Your COPE estimate is £57.89 a week

In that case pre-2016 years aren't going to boost your forecast at all. 

However each of those post-2016 years will add £5.29 a week to your forecast until you reach the maximum £185.15
So six years would take you up to £184.76 - a seventh year will only add a further 39p so not worth doing. 

The latest six years you have will still be available to buy after the July deadline, although the prices of all but the most recent two will rise by around £83, so you may want to brave the phone lines before then.