Topping Up State Pension

Robocop35

Hi,

I am currently not working.  I am currently doing Exams for Accountancy and I hope to get a role in that field later this year.

There will be 3 years I have not paid any National Insurance.  The current tax year and the previous tax years.

I was 50 in November and I have 28 full years of National Insurance Contributions.  

My forecast currently is I am on £186.78 a week when I am due to retire in November 2040, and my pension will never be higher than £203.85.

The Government want £800.80 and £824.20 for the years I have not paid, which I have to April 2028 and April 2029.

From what I thought, you need 35 years of National Insurance Contributions to get the full State Pension or has this changed.

When I am back in employment, is it beneficial to pay the missing years which will give me more years towards the State Pension or not?

I would appreciate anyone's opinion, as it does not look like its worth me paying the gap years or not?

Many thanks

James

Dazed_and_C0nfused

Robocop35 said:

Hi,

I am currently not working.  I am currently doing Exams for Accountancy and I hope to get a role in that field later this year.

There will be 3 years I have not paid any National Insurance.  The current tax year and the previous tax years.

I was 50 in November and I have 28 full years of National Insurance Contributions.  

My forecast currently is I am on £186.78 a week when I am due to retire in November 2040, and my pension will never be higher than £203.85.

The Government want £800.80 and £824.20 for the years I have not paid, which I have to April 2028 and April 2029.

From what I thought, you need 35 years of National Insurance Contributions to get the full State Pension or has this changed.

When I am back in employment, is it beneficial to pay the missing years which will give me more years towards the State Pension or not?

I would appreciate anyone's opinion, as it does not look like its worth me paying the gap years or not?

Many thanks

James

35 years applies to those building up an NI history from 2016 so not relevant for you.  Have you read the information on gov.uk which explains this?

If you expect to gain another 3 years from future employment (or an other method) then you would be wasting your money making voluntary contributions.

molerat

Your forecast will also state something like " if you contribute another 3 years before April 2040".  So that is the number of years you need to reach that maximum possible £203.85.  That figure at the top of the forecast is what you can achieve going forward so if you intend to work for more than 3 years before 2040 then there is no point purchasing gap years.  As a side note your pre 2016 years with the added additional S2P amount was the equivalent of 27 new scheme years meaning only another 8 required to reach the maximum of which you have already filled 5.

maxmycardagain

Dear Robocop, dont worry about the pennies involved, your pension(state)/pensions(private) plus post retirement part time work will be taxed to the hilt, if you pass your course work a few years PAYE, then consider self employment, id say you would need a good accountant but hopefully you wont lol

HMRC/HMG are not there to give money, just to take it...