Martin's advice on buying back NI years

eskbanker

hugheskevi said:

There is always a risk of policy change in the calculation of State Pension entitlement, given it is a benefit.

An observation that usually seems to trigger outraged indignation on here - "I've paid my stamp all my life, how dare they", blah, blah, blah...

JoeCrystal

molerat said:

It would mean moving the goalposts to a completely different stadium to have any effect on whether buying NI top up years is a good or bad decision.  The only goalpost I hope they move is to remove the ability to pay class 2 voluntary contributions going forward, there is no longer any sensible reason for them to exist.

And perhaps not allowing any overseas purchases as well!

Brian3357

I suppose the government's approach to hint at dire news and tough decisions without being specific, actually fuels speculation 

MiserlyMartin

I agree that if only if you have calculated that you will not have enough years on record by the time you stop working should you buy extra years. Myself, I finished my qualifying years for the maximum new state pension in 2019 after chocking up 30 years since 1988. I only had a Saturday job at 15 years old in '88 but I seem to have got a full year for it! At 16 I was working a full time job (and doing college). I've gone right over the 30 years now since I'm still working, so there is no need to fill in years since the website says 'you cannot improve your forecast anymore'

On the flip side, if someone had to stop working early due to ill health, you might want to buy extra years while they are cheaper rather than putting it off. Trouble is with the powers that be, they can and do keep moving the goalposts

molerat

I only had a Saturday job at 15 years old in '88 but I seem to have got a full year for it!

The tax year in which you reached your 16th birthday ?

In which case you would have received a freebie along with the following 2.

Brian3357

Even if your online statepension statement suggestd aditional years are avaliable to buy, id phone up to check. It's not straightforward. Some think of the statement says you are at full entitlement, it assumes you will continue to get ni until retirement age. Also check if you're already claiming statepension, you can still potentially buy back years. 

eskbanker

Brian3357 said:

Even if your online statepension statement suggestd aditional years are avaliable to buy, id phone up to check. It's not straightforward. Some think of the statement says you are at full entitlement, it assumes you will continue to get ni until retirement age. Also check if you're already claiming statepension, you can still potentially buy back years. 

The forecasts do clearly differentiate between entitlement accrued up to the end of the last tax year and what the maximum available will be if continuing to make NI contributions, although it is true to say that some overlook this when skim-reading.

Phoning to check is often a time-consuming process, and much can be determined by carefully following the advice given in articles such as:

https://www.moneysavingexpert.com/savings/voluntary-national-insurance-contributions/

molerat

The pension forecast is very clear about how many years you need to take you to the full amount.

Brian3357

Entitlement is not as clear for those who have contracted out. 
I know when i was buying back years, i telephoned for a code to include as ref when transferring money. I was told to phone again for a new reference code when additional years were bought