Additional voluntary NI contributions

calypso_rhapsody

Sorry folks I know that there have been lots of questions like mine - i have tried to get through to the Helpline but keep getting cut off.

This relates to my husband who was 65 at end of April.  He is not working and has not paid contributions for several years.
His record shows that he has 30 years of contributions and a forecast pension of £156.24 per week based on contributions to date.
He has estimated COPE of £81.63 per week
It says that the maximum pension he can get is £202.84.

Am i right in understanding that if he makes contributions for an extra 5 years then that maximum will be the case?

Additional contributions would cost £4,069 but the extra pension would be £46.60 so looks a bit of a no brainer as less thank 2 year payback?

And finally if that is what he wants to do ... how does he get an 18 digit code to make the payment?  We both wrote to PT Operations North East England in Feb and no reply as yet - think i may have missed the boat myself (as i was 65 last tax year) but the amount involved is on £5 per week so not so significant.

molerat

To get from his current £156.24 to £202.84 needs 8 more years of contributions so around £6400.

How are those 30 years split pre and post April 2016 ?

What years are showing as gaps ?

There should be 3 amounts showing on his forecast - what are they ?

Writing is a waste of time - they seem to be currently opening November 2022 mail.

What does your forecast show ?

Dazed_and_C0nfused

Am i right in understanding that if he makes contributions for an extra 5 years then that maximum will be the case?

You've gone wrong somewhere with your sums.

Each post 2016 year will add £5.82/week so buying 8 years will add the £46.60/week.

An extra 5 years will only add £29.12/week.

It still worth doing though even if the cost is more like £6.6k.

The outlay is a one one off payment whereas the return benefits from the triple lock so what is £46.60/week in this tax year could easily be £49/week next year and probably tip over £50/week the year after.

calypso_rhapsody

The 30 years are all pre 2016 as he stopped working early.  So there are gaps for every year since 2003.

Even £6400 is less than 3 years worth of additional pension.

The third figure on the forecast is if he continues contributing to April 2024 £164.89 - i rather disregarded this as he is not currently contributing.

Mine shows £198.66 from current conts and £203.85 if i contribute another year (also the max).  

I have tried to call the Future Pension Helpline several times but always get cut off.  But HMRC say they can't give me an 18 digit number until i have spoken to that helpline.  Seems idiotic since the statement actually tells me i only need to contribute one more year to get the maximum.  Slightly less so in my husband's case.

Thank you for your help

molerat

The third figure on the forecast is if he continues contributing to April 2024 £164.89 - i rather disregarded this as he is not currently contributing.

Not really important but gives an overall picture and sense checks what you are telling us.   And £167.89 ?

The important thing here is that only years 2016-17 and later will add to his pension.  So he needs the 8 years 2016-17 - 18 - 19 - 20 - 21 - 22 - 23 - 24 to reach his maximum amount.

In your case do you have any gaps ?  2020-21 is the sweet spot for £795.60 to get you that £5.19

calypso_rhapsody

Thanks!  Yes i had already identified 20/21 for my contributions.

I guess my husband needs to pay up to this year asap and then next year in due course.  You are right i did have a typo £167.89

Still need to get through to the helpline as it seems it's impossible to get the reference number to pay without doing so which is seriously annoying!

molerat

The other option is a cheque and letter. https://www.gov.uk/pay-voluntary-class-3-national-insurance/by-post

Your OH needs to pay up to 20-21 by 31 July, as do you for that year, as the prices for that year and earlier increase to £907.40.  The remainder need to be paid before 2 years after the end of the year to keep the in year price.

TrackerL

calypso_rhapsody said:

The 30 years are all pre 2016 as he stopped working early.  So there are gaps for every year since 2003.

Even £6400 is less than 3 years worth of additional pension.

The third figure on the forecast is if he continues contributing to April 2024 £164.89 - i rather disregarded this as he is not currently contributing.

Mine shows £198.66 from current conts and £203.85 if i contribute another year (also the max).  

I have tried to call the Future Pension Helpline several times but always get cut off.  But HMRC say they can't give me an 18 digit number until i have spoken to that helpline.  Seems idiotic since the statement actually tells me i only need to contribute one more year to get the maximum.  Slightly less so in my husband's case.

Thank you for your help

Re: 18 digit reference. The experts here have confirmed you will benefit from the extra years. Phone HMRC and tell them you have been told the year will benefit you, they will give you the code.

No risk based on the advice of the collective here.

LEthERaD

molerat said:

The third figure on the forecast is if he continues contributing to April 2024 £164.89 - i rather disregarded this as he is not currently contributing.

Not really important but gives an overall picture and sense checks what you are telling us.   And £167.89 ?

The important thing here is that only years 2016-17 and later will add to his pension.  So he needs the 8 years 2016-17 - 18 - 19 - 20 - 21 - 22 - 23 - 24 to reach his maximum amount.

In your case do you have any gaps ?  2020-21 is the sweet spot for £795.60 to get you that £5.19

Can I ask about the comment "The important thing here is that only years 2016-17 and later will add to his pension"? Is this always the case? I recently toped up a part year 2011-2012. Thanks.

molerat

LEthERaD said:

molerat said:

The third figure on the forecast is if he continues contributing to April 2024 £164.89 - i rather disregarded this as he is not currently contributing.

Not really important but gives an overall picture and sense checks what you are telling us.   And £167.89 ?

The important thing here is that only years 2016-17 and later will add to his pension.  So he needs the 8 years 2016-17 - 18 - 19 - 20 - 21 - 22 - 23 - 24 to reach his maximum amount.

In your case do you have any gaps ?  2020-21 is the sweet spot for £795.60 to get you that £5.19

Can I ask about the comment "The important thing here is that only years 2016-17 and later will add to his pension"? Is this always the case? I recently toped up a part year 2011-2012. Thanks.

If you already have 35 or more pre 2016 years then purchasing more cannot add value.  If you have less than 30 pre 2016 years then going up to 30 cannot fail to add value. In between is down to your individual circumstances as is how much a pre 2016 year will add, either £5.82 or £5.21. That is why we ask very specific questions.

LEthERaD

Thanks for the quick reply. Is it possible to move the payment into a year post 2016?