Possible to Buy 1 Additional Year

kassy64

Hi, been looking at queries regarding buying additional years for state pension.
My situation is this -
NI Record to 5/4/23 shows an ESTIMATE of £199.08 per week
It states I need to contribute 1 more year before 5/4/31 to get max of £203.85
I have 43 full years contribution from 1980/81 to 2022/23.
I worked in the Civil service so was contracted out for some of those years (not sure which).
I have a COPE estimate of £82.94, which I presume is paid as part of my Civil Service pension.
I have now retired and not expecting to work again before my SPA of 67 (I am 59 yo at present).
So, basically I need to 'buy' 1 more years NI contributions to gain the extra £4.77 per week SP.
1) Any idea how much 1 year would cost roughly?
2) What type of contributions do I need.
3) What is the process for buying
4) I have also read of a deadline in 2025 to purchase these additional years, hence the question now. If i don't buy before 2025 will the chance be gone forever?
Looking forward to hearing your guidance on how to proceed.
Thanks
kassy

Dazed_and_C0nfused

1.  ~£900
2.  Class 3
3.  You pay HMRC, either online or by cheque
4.  No.  Your last chance will be several years after you reach 67.  But you should do it before you reach SPa.

Simplest thing is to buy 2023-24 this time next year.

jem16

kassy64 said:

I have now retired and not expecting to work again before my SPA of 67 (I am 59 yo at present).

Is there any chance of receiving NI Credits for caring for someone like a parent or a grandchild?

kassy64

jem16 said:

kassy64 said:

I have now retired and not expecting to work again before my SPA of 67 (I am 59 yo at present).

Is there any chance of receiving NI Credits for caring for someone like a parent or a grandchild?

Not at present no, but things could change re grandchildren, unfortunately not parents. What are the guidelines?

kassy64

Dazed_and_C0nfused said:

1.  ~£900
2.  Class 3
3.  You pay HMRC, either online or by cheque
4.  No.  Your last chance will be several years after you reach 67.  But you should do it before you reach SPa.

Simplest thing is to buy 2023-24 this time next year.

Hi, thanks for the reply. One more question, my record shows 43 full years between 1980 and 2023, however I was contracted out for some of these, how do I know which year to buy or does it not work like that?
Does anyone know the years when civil servants were contracted out, or when they started paying full contributions again?
thanks

jem16

kassy64 said:

jem16 said:

kassy64 said:

I have now retired and not expecting to work again before my SPA of 67 (I am 59 yo at present).

Is there any chance of receiving NI Credits for caring for someone like a parent or a grandchild?

Not at present no, but things could change re grandchildren, unfortunately not parents. What are the guidelines?

Basically you could claim Specified Adult Childcare Credits if you were to look after a grandchild under the age of 12 to allow the parent to work. The parent must be paying NI and also claiming Child Benefit. This allows the NI Credit to be transferred to you.

https://www.gov.uk/guidance/apply-for-specified-adult-childcare-credits

Dazed_and_C0nfused

kassy64 said:

Dazed_and_C0nfused said:

1.  ~£900
2.  Class 3
3.  You pay HMRC, either online or by cheque
4.  No.  Your last chance will be several years after you reach 67.  But you should do it before you reach SPa.

Simplest thing is to buy 2023-24 this time next year.

Hi, thanks for the reply. One more question, my record shows 43 full years between 1980 and 2023, however I was contracted out for some of these, how do I know which year to buy or does it not work like that?

You can only buy 2023-24 or later years.

Any year from 2023-24 to the year before you reach SPa will take you from £199.08 to £203.85.

Does anyone know the years when civil servants were contracted out, or when they started paying full contributions again?

Do you actually need to know that?  Contracting out stopped by 5 April 2016.

jem16

kassy64 said:

Dazed_and_C0nfused said:

1.  ~£900
2.  Class 3
3.  You pay HMRC, either online or by cheque
4.  No.  Your last chance will be several years after you reach 67.  But you should do it before you reach SPa.

Simplest thing is to buy 2023-24 this time next year.

Hi, thanks for the reply. One more question, my record shows 43 full years between 1980 and 2023, however I was contracted out for some of these, how do I know which year to buy or does it not work like that?
Does anyone know the years when civil servants were contracted out, or when they started paying full contributions again?
thanks

No it doesn't work like that. Contracted out years are still full years for qualifying purposes. You can only pay voluntary NI for years where you have gaps - ie from 2023 onwards by the sound of it.

Contracting out began in 1978 and ended in 2016. In April 2016 they did two calculations, one under the old system and one under the new system. Whichever was higher became your Starting Amount under the new system which began in 2016. As you've been working since 2016 you have been adding to your Starting Amount which has got you closer to the full new state pension. You're just not quite there yet.

kassy64

Dazed_and_C0nfused said:

kassy64 said:

Dazed_and_C0nfused said:

1.  ~£900
2.  Class 3
3.  You pay HMRC, either online or by cheque
4.  No.  Your last chance will be several years after you reach 67.  But you should do it before you reach SPa.

Simplest thing is to buy 2023-24 this time next year.

Hi, thanks for the reply. One more question, my record shows 43 full years between 1980 and 2023, however I was contracted out for some of these, how do I know which year to buy or does it not work like that?

You can only buy 2023-24 or later years.

Any year from 2023-24 to the year before you reach SPa will take you from £199.08 to £203.85.

Does anyone know the years when civil servants were contracted out, or when they started paying full contributions again?

Do you actually need to know that?  Contracting out stopped by 5 April 2016.

No I suppose I don't, I just assumed that the 1 year I need to purchase would be on of the 'contracted out' years and I would be asked which year I was paying for. But of course I can buy one of the years between now and my SPA of 67 (so next 8 years).
Thanks

molerat

If contracted out you should not buy any pre April 2016 years (if they were available), that is the only "rule".  Any available year 2016-17 and later will add that necessary £4.77, your NI record will show any years available to buy.  Have you worked at all this financial year ? You can either buy 2023-24 around this time next year or wait until closer to the time.

kassy64

molerat said:

If contracted out you should not buy any pre April 2016 years (if they were available), that is the only "rule".  Any available year 2016-17 and later will add that necessary £4.77, your NI record will show any years available to buy.  Have you worked at all this financial year ? You can either buy 2023-24 around this time next year or wait until closer to the time, it will be class 3 you need to purchase.

No, I retired in September 2022, so 2022/2023 was counted as a full year due to earnings up to the September. I haven't worked since and don't really have any intention to at present (I'm one of the Governments economically inactive but having worked shifts for 43 years believe I deserve it).
My NI record doesn't specifically show any years to buy, it just states I need 1 more years contributions prior to April 2031. Presumably the sooner the better as the rates go up each year. Advice given by you guys seems to be do it this time next year, which is my current thinking. Thanks again.