Buying additional years

Laikos

Hi all,

Been trying to get through to the helpline with no luck, will try again tomorrow am at 8. In the meantime if anyone could help it would be much appreciated. I'm currently forecast to get £156.24 per week. I could get this to the max if I work more years, but I'm looking to leave the UK next year (to an EU country - whole other story!) I'm not planning to make any subsequent contributions once I'm abroad - except perhaps if I leave before next April to make sure I get the full 2023/24 year.

In addition I have 5 years that I could additionally buy from 2008 - 2009 to 2012 - 2013 inclusive. My sense is that in general buying such years is a no-brainer, but would be good to hear others' views and in particular whether there is any issue around what contribution those older years will make to my pension (I read in another post about pre2016 years somehow being different?) or is it as simple as buying them and they get added on?

Thanks in advance.

B

molerat

If you are leaving the UK it would be far more sensible to pay class 2 at £179.40 per year going forward, 4 for the price of 1.  If you currently have £156.24 you need another 8 years to get just short of the full amount - £202.83, class 2 is the way to go. https://www.gov.uk/government/publications/social-security-abroad-ni38

Laikos

Thanks Molerat. I really need to get through to that pensions helpline!

molerat

Laikos said:

Thanks Molerat. I really need to get through to that pensions helpline!

Only if you want to go the expensive buying past years route !!

If you want to post up the full details from your forecast we can point you in the right direction

Current £££.pp amount accrued up to April 2022 (or 2023 as some have been updated)
Number of pre 2016 NI years full
Number of post 2016 NI years full
Tax year you reach state retirement
Any COPE amount shown, in a click link in "You've been in a contracted-out pension scheme" if there is one.
Years which show not full and prices

Laikos

But given I'm not going to be abroad until next year, that means I would miss the current window to buy back those five years. So I would have to buy additional years every year (or every three years) until I (almost) get to the maximum possible in 8 years time? Otoh I would pay a fraction of what I would have to pay for those previous years atm. Why does HMRC do that - because I'm not using the system here?

Dazed_and_C0nfused

Laikos said:

But given I'm not going to be abroad until next year, that means I would miss the current window to buy back those five years. So I would have to buy additional years every year (or every three years) until I (almost) get to the maximum possible in 8 years time? Otoh I would pay a fraction of what I would have to pay for those previous years atm. Why does HMRC do that - because I'm not using the system here?

Could you explain the maths there?

Not sure you have followed @molerat's posts.  Or you know something you haven't shared with us yet.

molerat

There is also the possibility that those pre 2016 years will not add to your pension, the information asked will enable us to advise on that.

Laikos

I guess what I meant was I'm young enough to be able to buy the same amount of years in the future which, if I understand correctly, I could buy at the class 2 rate from abroad. They would be cheaper than my buying the years I can currently buy at the full rate (though after talking to the helpline it seems I might be able to buy those old years at class 2 as I was working in an EU country at the time).

Will try and dig out my info and post it on here. Thanks again for all the help. Also if anyone has bought years at class 2 from when they worked abroad I'm be really interested to see what documentation was required/how onerous it all was.

Sarahspangles

Laikos said:

I guess what I meant was I'm young enough to be able to buy the same amount of years in the future which, if I understand correctly, I could buy at the class 2 rate from abroad. They would be cheaper than my buying the years I can currently buy at the full rate (though after talking to the helpline it seems I might be able to buy those old years at class 2 as I was working in an EU country at the time).

Will try and dig out my info and post it on here. Thanks again for all the help. Also if anyone has bought years at class 2 from when they worked abroad I'm be really interested to see what documentation was required/how onerous it all was.

@SwiftSuzie from p68 in this thread.

https://forums.moneysavingexpert.com/discussion/6358689/guide-discussion-voluntary-national-insurance-contributions/p68

Laikos

@molerat

ok here goes:

no. of full pre-2016 years - 19

no. of full post-2016 years - 7

not full years - 2008/09 - 2012/13 priced at £824.20 ea. (I was working in an EU country for probably 4 of those years iirc)

forecast to 2023 - £156.24 p/w

forecast max - £203.85 p/w

Will reach pensionable age in 2039/40

COPE £28.16 per week [edit I think that might be a type and is £18.16 per week]

pinnks

Don't forget that you will be able to use your UK years to help you qualify for a pension in that EU country as well.  It will only be 4 years worth of whatever that country pays but "every little helps" as they say.

Also, if you were working in that EU country then you may/should qualify to pay voluntary Class 2 NI at about 1/4 of the price of Class 3.  You will need to send HMRC a form CF83 and have a read of Social Security abroad: NI38 - GOV.UK (www.gov.uk)