Is it worth me topping up NI contributions

djmillard

Wonder if there are any experts who can advise.
I will be 65 in September, I retired from the civil service at age 60 with 42 years NI contributions , opted out of SERPS.
My  current pension forecast is £165.13
If I pay NI up until pension age forecast is £176.78 , i am assuming that would be two financial year payments of £800
The most I can get is £203 assume that is paying additional NI for 6 years.

so my working out on the information provided by pension forecast is that I would receive an additional £572 per year ( £457 net of tax)  for £1600 payment so 4 years or so to break even

Are my facts  and calculations correct ?

Thanks

Dazed_and_C0nfused

Your figures don't make sense.

If you have accrued £165.13 then 6 post 2016 years will take you to pennies over £200.

How have you arrived at £203 for an extra 6 years?

Which post 2016 years are available to buy?

But the general principle is correct, you are a big winner under the new system and can made a hard to investment which could reap an inflation linked return for 30+ years!

pinnks

If you retired from the CS at 60 in September 2018, then I would guess that 2018/19 is already showing as full, or virtually full.  The final year that counts towards your pension is 2023/24, so you presumably have either 5 or 6 years that can be filled, depending on the status of 2018/19?

If you can fill 6 years that would add £34.92 to your £165.13 and take you to a max of £200.05 per week.  If you can fill only 5 years because 2018/19 is already full through the final 6 months of your employment, then your max will be £194.23.

It looks as though your forecast is based on your NI record to 5 April 2022, hence your reference to filling 2 forward years (2022/23 and 2023/24).  What does it show as the max if you fill gaps - presumably on of the two figures I quote?