Benefit of paying more voluntary contributions

Crazytrader2021

I am just about to pay voluntary pension contributions for last 4 years before the deadline in July. I am also curious if there are any benefits of paying more apart from the upcoming pension contributions for each year.  

molerat

The only benefit is that past years can be cheaper but depending on how far it is to receiving the pension the risk is of losing it all if you don't make it.

xylophone

if there are any benefits of paying more 

Could you clarify your exact position by answering the following

• Headline forecast
• 
  
•  Amount accrued so far and whether up to April 2022 or April 2023
• 
  
•  Number of years going forward before you reach state pension age
• 
  
• Number of full years prior to April 2016
• 
  
• Number of full years after April 2016
• 
  
•  Years where there are gaps in your NI record and how much is quoted to pay them
• 
  
• Any COPE value (seen if you click a link where it says something like 'you have been in a contracted out pension scheme'

dealyboy

Crazytrader2021 said:

I am just about to pay voluntary pension contributions for last 4 years before the deadline in July. I am also curious if there are any benefits of paying more apart from the upcoming pension contributions for each year.  

... no rush ... deadline is now April 2025.

p00hsticks

dealyboy said:

Crazytrader2021 said:

I am just about to pay voluntary pension contributions for last 4 years before the deadline in July. I am also curious if there are any benefits of paying more apart from the upcoming pension contributions for each year.  

... no rush ... deadline is now April 2025.

And if the OP really does mean 'the last four years' i.e. 2019-20 to 2022-23 it's even longer than that, as you can always pay as far back as the previous six years, even after this deadline. 

Crazytrader2021

p00hsticks said:

dealyboy said:

Crazytrader2021 said:

I am just about to pay voluntary pension contributions for last 4 years before the deadline in July. I am also curious if there are any benefits of paying more apart from the upcoming pension contributions for each year.  

... no rush ... deadline is now April 2025.

And if the OP really does mean 'the last four years' i.e. 2019-20 to 2022-23 it's even longer than that, as you can always pay as far back as the previous six years, even after this deadline. 

Not last 4 years , sorry.  it is for previous years. By the end of July I can pay for couple years and then next year I can pay for  each year only.  My question is  if I pay for  all these years in one go now , is any benefits of doing so? Now it is around  800 pounds a year, if I pay 1000 pounds a year what will happen? 

molerat

You can't.  A year costs what it states on your NI record, no more and no less. It gives you a set amount of weekly pension, currently £5.82, for purchasing that year. You have until 5 April 2025 to pay for the majority of back years with the price held at that indicated.

Crazytrader2021

molerat said:

You can't.  A year costs what it states on your NI record, no more and no less. It gives you a set amount of weekly pension, currently £5.82, for purchasing that year. You have until 5 April 2025 to pay for the majority of back years with the price held at that indicated.

Very clearly explained, Sir. Many thanks!