Info please

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  • eskbanker
    eskbanker Posts: 30,764 Forumite
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    pencove said:
    He has a public service pension and was contracted out before 2016 so maybe not worth it?
    What makes you say that?  Buying the extra pension income is usually very cost-effective....
  • pencove
    pencove Posts: 22 Forumite
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    edited 28 November 2023 at 8:26PM
    One other thing can someone please explain why when you have paid over 40 years in contributions and yet it says you only have to pay 35 years in contributions to get a full state pension so why can you buy years? rather confusing?

    Thanks Julie
  • eskbanker
    eskbanker Posts: 30,764 Forumite
    First Anniversary Name Dropper Photogenic First Post
    pencove said:
    One other thing can someone please explain why when you have paid over 40 years in contributions and yet it says you only have to pay 35 years in contributions to get a full state pension so why can you buy years? rather confusing?

    Thanks Julie
    Ignore the oft-misquoted reference to 35 years, that only applies to people born this century, i.e. those who've started paying NI under the post-2016 state pension regime.  Everyone else is under transitional rules, which is why there isn't a simple one-size-fits-all number of years needed - some need nearly 50, others are in the 20s, and all points in between....
  • molerat
    molerat Posts: 31,798 Forumite
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    edited 29 November 2023 at 12:28AM
    pencove said:
    He has a public service pension and was contracted out before 2016 so maybe not worth it?

    Thanks
    All that means is that filling any gaps pre April 2016 would not add to his pension.  Filling any gaps post April 2016 will add £5.82 per year up to the max £203.85.  With a current £185.36 he is £18.49 short of the max. Purchasing 3 years will take him to £202.83, just £1.02 short of the max. The NI record will show the cost of each of the gaps, the thing to look for is a part filled year as that will be good value to purchase. You will see that years are often priced differently, a cheaper year will still add the same amount to the pension. This current year, 23-24, will cost £907.40. Purchased years will pay back gross in around 3 years, way better than an open market annuity.
    Have either of you been looking after grandchildren whilst the parent works ?  A good way of getting free years.

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