Voluntary NI contributions to top up state pension

Easyserge

I am trying to help my dad top up his NI contributions as he has gaps in his record. Dad has retired. We have calculated the eligible amounts from his NI statements but are not sure if we can just go ahead and make the payment and this will automatically allow DWP to recalculate his pension, or whether we need to call them and confirm first. We have tried for days on end to contact them with no joy and I am worried that the deadline is approaching fast and he will miss the boat. Any advice would be appreciated. Thanks

molerat

I don't think that contacting DWP or not will make any difference, I believe that making a payment sends triggers rather than DWP asking, but are you 100% certain that what you want to pay will actually add to his pension ?

xylophone

Your father reached SPA after 6/4/16 and is in receipt of his state pension?

When did he reach SPA?

What was the weekly amount at that point?

How many  qualifying years up to and including 5/4/16?

And from 6/4/16 to the last full tax year pre SPA?

Silvertabby

Your talk of 'missing the boat' points to the NI gaps being pre 2016.  But, as has already been pointed out, paying these may not increase your dad's pension.

If you can answer xylophone's questions we'll have a better idea.

Scobie3

Hi wondering if anyone else is waiting a long time for the increase in their pension after making voluntary N.I. Contributions. I am already receiving my pension and I paid for three missing years on 19/01/23. Still no increase apart from the inflation top up. Thanks in anticipation.

molerat

Yes it is taking months.  It is a purely manual process and they are under an extreme workload due to the 2016 transitional measures, which were published in 2013, ending.  Your pension will be backdated to the date of payment.

Scobie3

Thanks Molerat. The strange thing is my wife also contributed on 02/02/23 and she has received her increase already. Is it just the luck of the draw in how they process it do you think?

Easyserge

Xylophone thank you for responding. In response to the questions asked:

1. yes
2. November 2016
3. £90.23 p/w (£391 p/m)

4. 22 years full contribution
5. same as above

His NI statement says he can make a voluntary contribution of £824.20 per year from 2006/7 to 2012/13 so I had assumed he would then be entitled to a pension top up. 

molerat

Something does not compute there.  With 22 pre 2016 years he should be receiving at least £114.62

His NI statement is merely a list of facts about his NI record, it does not mean those years will add to his pension although with such a limited record they should.

Easyserge

Thanks Molerat, his current weekly pension is £113.50 p/w, the figure previously was the pension he got when he first received it in 2016. 

Is it too big a gamble to just pay the voulntary contributions? 

He wont accept financial help from us directly but the rise in cost of living is obviously a strain on him so trying to do what we can for him and he has agreed to the top up. 

Thanks for the response

molerat

He should be safe to top up his pre 2016 years to a maximum of no more than 30 according to what is available. 

Something still does not look right with the calculations around the amount today, the amount in 2016 and 22 years of contributions.  That is why speaking to someone may be needed.

To find out what he can achieve you need to speak to The Pension Service

To pay and get the reference number you need to speak to HMRC.