State pension top

Juleswood

I am a 62 year old retired teacher in receipt of my teachers pension.   If i don’t work during again (not at all likely) before reaching state retirement age at 66 and a half I will be 4 years short of the full state pension despite 41 years of contributions.  Is it worth making up the extra 4 years as I would inevitably pay tax on the state pension I receive and therefore won’t reap the benefits as quickly as if it was my only income?  £3600 is a lot of money to take from my savings.  Anybody else feel as confused as me?

Linton

The £3600 cost for 4 years voluntary NI would be returned to you in about 3 years extra State Pension. If you live longer than that it is all free extra money for the rest of your life.
Seems a remarkably generous deal to me.

Dazed_and_C0nfused

Juleswood said:

I am a 62 year old retired teacher in receipt of my teachers pension.   If i don’t work during again (not at all likely) before reaching state retirement age at 66 and a half I will be 4 years short of the full state pension despite 41 years of contributions.  Is it worth making up the extra 4 years as I would inevitably pay tax on the state pension I receive and therefore won’t reap the benefits as quickly as if it was my only income?  £3600 is a lot of money to take from my savings.  Anybody else feel as confused as me?

@Juleswood

 One thing you do need to be careful about is the fourth and final year.

You will be capped at £203.85/week so if your current entitlement is say £185.85 then yes you need 4 years to reach £203.85.

But each of the first 3 years will add £5.82/week taking you to £203.31.

The fourth year will only add the final £0.54/week so not nearly as good value.

The best thing to do is check your actual amount accrued to date and you can then decide if 3 or 4 years is the way to go.