Voluntary NI contributions/state pension advice

davidro

Dear Moneysavers

I've decided that it's high time that I sort out my state pension and I'm hoping that some generous person will save me from contacting the dreaded Future Pension Centre helpline! Here are my details:

My current state pension estimate (based on my NI record up to 5th Apr 2022) is £81.53 per week.
I have 9 full years of NI credits pre-2016.
I have 5 full years of NI credits post-2016.
I reach state pension age in Oct 2036.
There is no COPE amount.
The following years are not full: 2006-2012 and 2019-20.
For the years 2006-2011, I can pay voluntary NI contributions of £824.20 per year.
For the years 2011-12 and 2019-20, the following message appears: 'We are checking this year to see if it counts towards your pension. We'll update your record when this is finished, you do not need to do anything.'

In 2019-20, I was self-employed (part-time) but earned less than £1,000; so, I didn't need to fill in a tax return and therefore I didn't.
During 2011-12, I became self-employed (in about November), having previously been neither working nor claiming any benefits. I paid some NI contributions that year, but evidently not enough to count as a full year's worth.

Moreover, my state pension forecast says that the most I can increase my pension to is £192.20 per week, whereas by my reckoning if I continue paying NI contributions up to 2036 and if I pay for all the missing years back to 2006, then I should get the full state pension. I presume that for some reason, HMRC are ignoring the years 2011-12 and 2019-20 in their calculations.

What I'm thinking of doing is paying the full £824.20 per year for all the years that are not full. I realize that by doing so, I would be paying more than I should; but I don't mind doing that, if at some point I would get back the excess amount that I've overpaid.

Thanks for reading this. Any advice that anyone can give me would be most appreciated (especially if it helps me to avoid telephoning the Future Pension Centre).

Ian

Marcon

davidro said:

Dear Moneysavers

I've decided that it's high time that I sort out my state pension and I'm hoping that some generous person will save me from contacting the dreaded Future Pension Centre helpline! Here are my details:

My current state pension estimate (based on my NI record up to 5th Apr 2022) is £81.53 per week.
I have 9 full years of NI credits pre-2016.
I have 5 full years of NI credits post-2016.
I reach state pension age in Oct 2036.
There is no COPE amount.
The following years are not full: 2006-2012 and 2019-20.
For the years 2006-2011, I can pay voluntary NI contributions of £824.20 per year.
For the years 2011-12 and 2019-20, the following message appears: 'We are checking this year to see if it counts towards your pension. We'll update your record when this is finished, you do not need to do anything.'

In 2019-20, I was self-employed (part-time) but earned less than £1,000; so, I didn't need to fill in a tax return and therefore I didn't.
During 2011-12, I became self-employed (in about November), having previously been neither working nor claiming any benefits. I paid some NI contributions that year, but evidently not enough to count as a full year's worth.

Moreover, my state pension forecast says that the most I can increase my pension to is £192.20 per week, whereas by my reckoning if I continue paying NI contributions up to 2036 and if I pay for all the missing years back to 2006, then I should get the full state pension. Why do you think the forecast is wrong when it says the most you can increase your pension to is £192.20 a week?

I presume that for some reason, HMRC are ignoring the years 2011-12 and 2019-20 in their calculations. No - see above.

What I'm thinking of doing is paying the full £824.20 per year for all the years that are not full. I realize that by doing so, I would be paying more than I should; but I don't mind doing that, if at some point I would get back the excess amount that I've overpaid. That's why you need to check before paying - you don't normally get a refund after you've gone ahead and contributed, unless the advice given to you directly by the FPC is demonstrably wrong.

Thanks for reading this. Any advice that anyone can give me would be most appreciated (especially if it helps me to avoid telephoning the Future Pension Centre).

Ian

Please see my comments above.  Completely understand your lack of enthusiasm for trying to get through to the FPC, but I think it would be time well spent if you did - you might otherwise find yourself paying out for no extra benefit.

davidro

Thanks, Marcon. Yes, I think I'll have to bite the bullet and phone the FPC.