Topping up NI contributions

DanteT

Hi. In October 2023 I paid for 2 years voluntary NI contributions to top up my state pension which I started claiming in February 2024. I am disappointed to say that buying these extra years has not added to my state pension at all. The amount I get is the same as my future pension forecast as it was before paying extra to HMRC. HMRC have you waiting on the phone line for hours then you are told to contact a different dept as they haven't yet allocated the extra. Often after an hour or so you are cut off! When you do finally speak to them they don't know anything about it. I have also written to them but no reply. I was going to buy 2 more years to get me up to 40 years and closer to the full state pension. (I was contracted out of SERPS ) but now I'm not so sure if it's worth doing! Has anyone else had this problem? There is an HMRC forum and they are saying it takes up to 44 months to get a reply! What an incompetent system. If after 44 months wait, will the extra pension be backdated? Is it worth buying the extra 2 years? Has anyone also experienced this?

Silvertabby

Which two years did you buy?  With your contracted out history only post 2016/17 years would add to your pension 

molerat

As above.

How much are you receiving per week £££.pp (and at 2023 or 2024 rate )?

How many full years up to April 2016 do you have ?

How many full years after April 2016 do you have ?

Which years are showing as not filled ?

Which years did you buy previously ?

HMRC will not know how buying years affects your pension, it is not their job, they are simply revenue collectors.  Your pension, and how NI years affect it, is under the remit of DWP which is why you are told to contact them before purchasing years.

DanteT

I paid for 2019/20 and 2020/21 . I was told I could but 4 years that would take me to almost the full amount. I retired from teaching in 2018 with 37 years NI contributions. Future pension forecast was £182.66 per week and told for each additional year bought it would add £5.92 per week. I bought the extra years in October 2023 and years have been added however it’s still only £182.66 per week. No extra added. It’s so disappointing since they told me it would make a difference and I could buy up to 4 years to come close to full pension. I had intended buying 2 more years but now I am not so sure. 

molerat

In that case those 2 years will have added to your pension.  When did you apply for the pension ?  I suspect that the additional years were not added to your record when the pension was calculated meaning when the record was updated it would need to be passed on to DWP to update the pension amount.  This is pretty much a manual process, much like passing bits of paper between desks, and would have to wait for someone to get round to doing it which can take many months.  It may be worth contacting The Pension Service to find out what is going on.  Unfortunately leaving things to the last minute has caused these problems but the good news is that any payment will be backdated to the start of your pension. https://www.gov.uk/contact-pension-service

DanteT

Thank you so much for this info. I started claiming my state pension in February this year and paid for the extra years in October 2023 and was told it would take 8 weeks to show on my record. It does show on my record but hasn’t added a penny thus far. It’s almost impossible to contact the pensions service online, by telephone and the letter I sent hasn’t been acknowledged. Hopefully it will eventually sort itself out!! Thanks again! 

molerat

Letters to DWP can take up to maybe a year to answer.  Best thing is to ring them at 8am when they open.

Silvertabby

Trouble is, it's many times harder (read: time needed)  to update your pension record once it is in payment.   As molerat says, try ringing them to see where they are at.

DanteT

Thanks. I will try to ring them again. Fingers crossed it gets sorted out. They need a more streamlined and efficient service but I will keep trying!