Buying national insurance years

Mintyrose

https://forums.moneysavingexpert.com/discussion/comment/80028881#Comment_80028881

Thanks for that! It's a really great idea, but works out more expensive in the long run?

Mintyrose

https://forums.moneysavingexpert.com/discussion/comment/80028898#Comment_80028898

husband is kind of panicking, as we will only both be in state pension when we get older , he has a tiny miners pension, and is panicking that if I don't get those years in we won't cope, and I thought if I bought them, then it will quell his anxiety a bit, I totally get that neither of us might be here to gain anything, but I'm dealing with his stress, and to gain my MI credits I do have to do what every jobseeker does and look for work, and get no other benefit than a credit 🌸

p00hsticks

https://forums.moneysavingexpert.com/discussion/comment/80028901#Comment_80028901

Not really in real terms, no.

The cost of Class 3 contributions goes up by inflation each year - it will be a big jump this year (10.3%) but is usually lower. Even if you buy back years now, you'll be charged the current years rate for any other that the most recent two, which are kept at their original rate.

(Normally the price increases at the start of the tax year, but due to the extension of the deadline to buy back years to July the price increases have also beenheld until then).

Buying now means that the money may be spent unnecessarily if your circumstances change - you could drop dead, or carry on getting NI credits, for example.

Buying for future years means that (assuming you have the money to hand now) the money remains under your control for longer and you can continue to earn interest on it yourself.

Mintyrose

https://forums.moneysavingexpert.com/discussion/comment/80028955#Comment_80028955

thank you so much for your advise p00hsticks 👍 I'll have a word with hubby, I wasn't happy with wanting to pay it all upfront anyway, due to the things that can happen, I'd rather that money was in our account than the governments, would help him if something happened to me, we're as paying into my state pension would just be a write-off , sometimes you need another persons outlook, thanks for that 🌸

molerat

Are any of those missing years particularly cheap part filled ? If not then I honestly wouldn't bother, especially if you are currently receiving credits, and would buy any necessary years nearer retirement.

xylophone

"husband is kind of panicking, as we will only both be in state pension when we get older , he has a tiny miners pension,"

Your husband has a deferred MPS pension?

https://www.mps-pension.org.uk/

This will be revaluing in deferment and will be index linked in payment.

If your husband is still working, does he not have access to a workplace pension scheme?

Are you sure that you have no pension (s) from previous employment(s)?

If neither of you is in receipt of "relevant earnings" (or in receipt of relevant earnings but less than £3,600 per annum), had you considered opening personal pensions and paying in up to £2880 per annum and thus being eligible to receive up to £720 in tax relief added to your pot(s)?

Mintyrose

xylophone said:

"husband is kind of panicking, as we will only both be in state pension when we get older , he has a tiny miners pension,"

Your husband has a deferred MPS pension?

https://www.mps-pension.org.uk/

This will be revaluing in deferment and will be index linked in payment.

If your husband is still working, does he not have access to a workplace pension scheme?

Are you sure that you have no pension (s) from previous employment(s)?

If neither of you is in receipt of "relevant earnings" (or in receipt of relevant earnings but less than £3,600 per annum), had you considered opening personal pensions and paying in up to £2880 per annum and thus being eligible to receive up to £720 in tax relief added to your pot(s)?

He is in receipt of a small MPS pension, took it at 50, he’s still in full time work, I have no pension, been looking after him and kids 🤦‍♀️, he doesn’t pay into his work place pension 

eskbanker

husband is kind of panicking, as we will only both be in state pension when we get older , he has a tiny miners pension, and is panicking that if I don't get those years in we won't cope

Mintyrose said:
he’s still in full time work

[...]

he doesn’t pay into his work place pension 

If he's concerned about retirement funding, why isn't he paying into his workplace pension?

Mintyrose

We need all his money out of his wage as do most people 

xylophone

he doesn't pay into his workplace pension

And he's panicking about income in retirement?

Why on earth hasn't he joined the workplace pension scheme?

 I have no pension, been looking after him and kids

How about a simple personal pension to which you would contribute £2880 a year and the provider would claim £720 and add it to your pot?

Explanation here

https://www.drewberryinsurance.co.uk/pensions-advice/faqs/i-dont-work-can-i-still-pay-into-a-pension

Perhaps something simple like this offering from Vanguard? 

https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account

The Target Retirement fund might suit.

Or even a stakeholder?

https://static.aviva.io/content/dam/document-library/adviser/pensions/sp01001c.pdf

https://www.standardlife.co.uk/pensions/stakeholder-pension