HELP NEEDED FOR EXPAT AUSSIE TOPPING UP

rapper57

I completed an ‘application to pay NI contributions abroad’ form and sent it to HMRC from Oz. HMRC sent a letter to say that they couldn’t process it as the form was not dated so trying to do it online and work out what the best thing to do is. 53 y/o male currently live/work in Australia.

My information states:

You have:

26 years of full contributions

16 years to contribute before 5 April 2038

***1 year when you did not contribute enough

 

A)     Estimate based on your National Insurance record up to 5 April 2022 = £162.40 a week

     Forecast if you contribute another 5 years before 5 April 2038 = £185.15 a week

£185.15 is the most you can get

 

My queries that I don’t fully understand and would hugely appreciate any help:

1.      Regarding A) does that mean that when I am eligible for the State Pension I will receive 162.50gbp/week? Even if I don’t contribute anything further?

2.      Regarding *** I have 1 year where I did not contribute enough so would it be valuable to me to voluntary contribute to fill that gap of 1 years of NI (?)

3.      Regarding Can I and should I contribute the extra 5 years of NI to take the pension to 185.15/week? And like in Q1 – is that what I will receive when I become pensionable age?

 

Huge thanks

Dazed_and_C0nfused

1.  No.  Your forecast seems 3 years old, the equivalent rate today replacing the £162.40 would likely be just over £194.

2.  It seems so however the value may well be slightly different if that year is pre or post 2016.

3.  If you want the higher amount then buying extra years seems a no brainer value for money wise.  However the first 4 years (at the old rates) would take you to £183.56.  The fifth year isn't as good value as it only adds the final £1.59/week.

NB.  The current equivalent of £185.15 is £221.20.