Making up my NI shortfall

buyhighselllow
buyhighselllow Posts: 243 Forumite
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edited 13 June 2023 at 2:57PM in Topping up your state pension
My NI statement obviously not updated yet but as of April 2022 my forecast was £187-41/ week and requiring 3 more years contributions to get £203-85/ week ( I had contributed 35 years at that time) . 55yo this year
So another year has now been knocked off. I will work this tax year FT til end of July then part time hopefully until the end of the year earning about 6K net in the final third of 2023.
After that ( 2024)  I'm not sure. I would like some easy low stress PT work but unsure how much that will bring in income each year. Could someone outline what I need to work   in terms of time and income to achieve my outstanding NI contributions to get a full SP please ( or should I consider buying the final chunk..at what cost..?) 
Over £2K made from bank switches and P2P incentives since 2016 :beer:

Comments

  • p00hsticks
    p00hsticks Posts: 12,811 Forumite
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    The Lower Earnings Limit for 2024-25 and beyond isn't known yet.
    But for the current year, if you earn £123 a week (£533 a month)  - that corresponds to about 12 hours a week at minimum wage - that will give you NI credits without actually having to pay any NI. 
    So you have plenty of time and opportunity to reach the maximum. 
    Certainly not worth making any voluntary contributions to fill in gaps at this point....
  • buyhighselllow
    buyhighselllow Posts: 243 Forumite
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    edited 30 April 2023 at 2:28PM
    The Lower Earnings Limit for 2024-25 and beyond isn't known yet.
    But for the current year, if you earn £123 a week (£533 a month)  - that corresponds to about 12 hours a week at minimum wage - that will give you NI credits without actually having to pay any NI. 
    So you have plenty of time and opportunity to reach the maximum. 
    Certainly not worth making any voluntary contributions to fill in gaps at this point....
    So, for example, if I did seasonal work  for two months a year that paid a total of say £2500, I would gain an extra  years credit in 3 years basically ?
    Over £2K made from bank switches and P2P incentives since 2016 :beer:
  • molerat
    molerat Posts: 31,851 Forumite
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    The Lower Earnings Limit for 2024-25 and beyond isn't known yet.
    But for the current year, if you earn £123 a week (£533 a month)  - that corresponds to about 12 hours a week at minimum wage - that will give you NI credits without actually having to pay any NI. 
    So you have plenty of time and opportunity to reach the maximum. 
    Certainly not worth making any voluntary contributions to fill in gaps at this point....
    So, for example, if I did seasonal work  for two months a year that paid a total of say £2500, I would gain an extra  years credit in 3 years basically ?
    No.  Each year is stand alone, you need to make a full year within each year.

  • buyhighselllow
    buyhighselllow Posts: 243 Forumite
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    edited 30 April 2023 at 3:01PM
    molerat said:
    The Lower Earnings Limit for 2024-25 and beyond isn't known yet.
    But for the current year, if you earn £123 a week (£533 a month)  - that corresponds to about 12 hours a week at minimum wage - that will give you NI credits without actually having to pay any NI. 
    So you have plenty of time and opportunity to reach the maximum. 
    Certainly not worth making any voluntary contributions to fill in gaps at this point....
    So, for example, if I did seasonal work  for two months a year that paid a total of say £2500, I would gain an extra  years credit in 3 years basically ?
    No.  Each year is stand alone, you need to make a full year within each year.

    Ok thanks.
    So based on what I've outlined for 23/24 , and its unlikely I will work in 2024 before April, do I need to make class 3 contributions for the first quarter of 2024 or will what I'm doing April- Nov/Dec 2023 give me another additional qualifying year ( which then leaves me needing 1 full year to get full SP after April 2024 ) 

    ...and do I need to do anything about August which I  was considering travelling for a month before returning as Bank staff  in September? I presume as long as I earn £533 gross in any month that qualifies yes ?
    Over £2K made from bank switches and P2P incentives since 2016 :beer:
  • molerat
    molerat Posts: 31,851 Forumite
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    To get a full year you need to earn 52 x weekly LEL in any given year, £123 per week so £6389.  Pay packets that are below the LEL don't count as does any amount above the UEL.  For each week you are above the LEL you will get a week credit so will have at least a part year but you could get a full year in a few months.  This year the monthly LEL is £533 and UEL is £4189 so not too difficult to reach the necessary £6396 income in a year.
  • molerat said:
    To get a full year you need to earn 52 x weekly LEL in any given year, £123 per week so £6389.  Pay packets that are below the LEL don't count as does any amount above the UEL.  For each week you are above the LEL you will get a week credit so will have at least a part year but you could get a full year in a few months.  This year the monthly LEL is £533 and UEL is £4189 so not too difficult to reach the necessary £6396 income in a year.
    Ok Thanks, I get it now. 
    cheers

    Over £2K made from bank switches and P2P incentives since 2016 :beer:
  • Jonty6262
    Jonty6262 Posts: 236 Forumite
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    My NI statement obviously not updated yet but as of April 2022 my forecast was £187-41/ week and requiring 3 more years contributions to get £203-85/ week ( I had contributed 35 years at that time) . 55yo this year
    So another year has now been knocked off. I will work this tax year FT til end of July then part time hopefully until the end of the year earning about 6K net in the final third of 2023.
    After that ( 2024)  I'm not sure. I would like some easy low stress PT work but unsure how much that will bring in income each year. Could someone outline what I need to work   in terms of time and income to achieve my outstanding NI contributions to get a full SP please ( or should I consider buying the final chunk..at what cost..?) 
    Mines been updated today
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