Why can't I top up my pension?

Ms_Chocaholic

blue.peter said:

I believe that it's intended that people should be able to do it online eventually, but that functionality hasn't yet been built.

As things stand at present, you'll need to phone the Future Pension Centre (0800 731 0175). They'll talk you through the numbers and, if you want to go ahead, pass you on to HMRC who'll give you the necessary information to make payment. I was advised to phone them as soon as they opened, which I did on Monday 4 March, and it was all sorted in just over a quarter of an hour.

If you check your NI record online, it'll tell you how much each missing year of NI conts will cost. There was some variation, but mine were around £800 each. I bought three years (out of the eight that I'm missing) for £2,420.60, and it increased my state pension from £184.75/week to £202.22/week (2023-2024 values).

By my calculations it will take just over 11 years before you've received enough pension to cover your outlay of £2420.60, was it worth it?

Dazed_and_C0nfused

Ms_Chocaholic said:

blue.peter said:

I believe that it's intended that people should be able to do it online eventually, but that functionality hasn't yet been built.

As things stand at present, you'll need to phone the Future Pension Centre (0800 731 0175). They'll talk you through the numbers and, if you want to go ahead, pass you on to HMRC who'll give you the necessary information to make payment. I was advised to phone them as soon as they opened, which I did on Monday 4 March, and it was all sorted in just over a quarter of an hour.

If you check your NI record online, it'll tell you how much each missing year of NI conts will cost. There was some variation, but mine were around £800 each. I bought three years (out of the eight that I'm missing) for £2,420.60, and it increased my state pension from £184.75/week to £202.22/week (2023-2024 values).

By my calculations it will take just over 11 years before you've received enough pension to cover your outlay of £2420.60, was it worth it?

How are you getting 11 years 🤔

£17.47 week has been added at current year rates.  Which will become £18.96/week from April.

Which is £985/year.  Or £788 if basic rate tax is going to be owed on it.

£788 for 3 years is £2,364.  So in reality with future increases in April 2025 and April 2026 the op will have recouped their money well within 3 years.

QrizB

Just a note that blue.pter (who paid £2420.60 to gain £17.47 a week) is not the OP.

blue.peter

Dazed_and_C0nfused said:

£788 for 3 years is £2,364.  So in reality with future increases in April 2025 and April 2026 the op will have recouped their money well within 3 years.

Allowing for the basic rate tax that I'll pay, my version is a bit higher (but still well worth it!):

£2,420.60 / ((£202.22 - £184.75) * 52 * 1.085 * 0.8) = 3.07 years.

But you're right to point out that there'll be further revaluations in April 2026 and 2027. They'd bring that period down a bit. On the other hand, if we offset the interest that I could expect if I'd left my money in a savings account, that'll push it up a bit.

If we substitute 12 for 52 and ignore both the April revaluation and tax in my calculation, it comes to 11.55 years. My suspicion is that @Ms_Chocaholic confused weekly and monthly pension amounts.