Does the year you top up matter?

floof16

I'm currently abroad and so not contributing to NI but plan to move back before 2030. I'm eligable for state pension in 2041.
According to my record, I need to add 12 more years to qualify for full pension.
I'm not planning to work until 67 so will need to buy some years.
My question is... is it better to top up pre-2016 years while I still can or does it not matter? Are pre-2016 years somehow worth more?
If it doesn't matter then I'll still have plenty of time to back-pay 6 years after 2025 and can presumably continue to pay for any years that I don't qualify in the UK e.g. through salary earned there.
What do you think? Top up now or wait?

p00hsticks

Pre-2016 years are never worth more and sometimes worth less, although they may in some cases be cheaper to buy - it all depends on the specific details of your individual forecast. 

As you have plenty of available years between 2016 and when you reach State Retirement age to fill in the gaps, my personal opinion would be to that it's probably not worth worrying about pre-2016 years. 

Note thatt after April 2025 you will only be able to buy the previous six years. 

molerat

Post 2016 years are guaranteed to add value, pre 2016 years may add less or even nothing, extreme caution needs to be exercised.  If you want to post up your forecast details someone will talk you through exactly what it means and your options

Current weekly £££.pp amount accrued up to April 2022 (or 2023 as some have been updated)
Number of pre April 2016 NI years full
Number of post April 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

floof16

Thank you. Here's what it says:

Estimate based on your National Insurance record up to 5 April 2022

£137.66 a week

Forecast if you contribute another 12 years before 5 April 2041

£203.85 a week

I have contributed 20 years pre 2016, and none post 2016. I have either full years showing or empty years i.e. no partial years.

floof16

molerat said:

Post 2016 years are guaranteed to add value, pre 2016 years may add less or even nothing, extreme caution needs to be exercised.  If you want to post up your forecast details someone will talk you through exactly what it means and your options

Current weekly £££.pp amount accrued up to April 2022 (or 2023 as some have been updated)
Number of pre April 2016 NI years full
Number of post April 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

Thank you. Here's what it says:

Estimate based on your National Insurance record up to 5 April 2022

£137.66 a week

Forecast if you contribute another 12 years before 5 April 2041

£203.85 a week

I have contributed 20 years pre 2016, and none post 2016. I have either full years showing or empty years i.e. no partial years.

molerat

Your 2016 starting amount was based on the pre 2016 rules, £105.13 old v £88.94 new, meaning a pre 2016 extra year will only add 0.9 of a post 2016 year in value, £5.21 v £5.82 for each year purchased.

Were you working immediately prior to going overseas ?

https://www.gov.uk/government/publications/social-security-abroad-ni38

floof16

said:

Your 2016 starting amount was based on the pre 2016 rules, £105.13 old v £88.94 new, meaning a pre 2016 extra year will only add 0.9 of a post 2016 year in value, £5.21 v £5.82 for each year purchased.

Were you working immediately prior to going overseas ?

Thanks for your help.
Yes, I was working right up until I left the country in 2011. I'll probably come back in 2028 but could be a couple of years later.
So, what you're saying is that I'm better to top up years from 2016 onwards?
If I have this right, then I have to contribute another 12 years but I have 19 years left to do it. So if I back pay 6 years when I arrive (in let's say 2030), I'll have another 11 years left to contribute 6 more which I could do by either working or back paying at the end of the year. Am I correct?
So on this basis, there's no major hurry for me to hit this 2025 back-payment deadline?

molerat

Pretty much.  If you were employed immediately before leaving and are employed whilst overseas you should be eligible for class 2 at around £160 per year, 5 for the price of 1 class 3, hence the link in my last post.