Voluntary NI Contributions

chapattiartist

At 60 years old now and currently not working I am confused over what to do so I can claim the full state pension when I reach 67.
The gov.uk site says my forecast is £202.24 a week, £879.38 a month, £10,552.59 a year, 
.

Gaps	Cost of filling gaps
2023 to 2024	£767.80
2022 to 2023	£602.30
2021 to 2022	£46.20
2015 to 2016	£824.20
2014 to 2015	£824.20
2013 to 2014	£824.20
2012 to 2013	£824.20
2011 to 2012	£824.20 Which would be the best gaps to fill in my case? I believe I can pay up to 2016 only up until April next year? Presently abroad too so I believe that its difficult to actually pay them unless your in the UK. ? Thank you for any pointers here.

Dazed_and_C0nfused

If by "forecast" you mean you have already accrued £202.24 then buying 3 post 2016 years will take you to exactly £221.20, your Personal maximum.

As the 3 cheapest years are also post 2016 then they would be the ones to buy.

jem16

chapattiartist said:

At 60 years old now and currently not working I am confused over what to do so I can claim the full state pension when I reach 67.
The gov.uk site says my forecast is £202.24 a week, £879.38 a month, £10,552.59 a year, 
.

Gaps	Cost of filling gaps
2023 to 2024	£767.80
2022 to 2023	£602.30
2021 to 2022	£46.20
2015 to 2016	£824.20
2014 to 2015	£824.20
2013 to 2014	£824.20
2012 to 2013	£824.20
2011 to 2012	Which would be the best gaps to fill in my case? I believe I can pay up to 2016 only up until April next year? Presently abroad too so I believe that its difficult to actually pay them unless your in the UK. ? Thank you for any pointers here.

You say you are currently abroad. Were you working abroad for any of the years where there are gaps? If so you may be eligible for Class 2 contributions which are very much cheaper. You also need to know if pre 2016 years would improve your pension or not as it all depends on your NI Record. 

Starting point from abroad is via this form. It’s much quicker if you can complete it online. 

https://www.gov.uk/guidance/apply-to-pay-voluntary-national-insurance-contributions-when-abroad-cf83

molerat

As already mentioned you need to be clear what that figure represents as on its own it can be confusing, it needs to be looked at in context with the whole of the forecast.  If that is the top line big green box, and it looks like it is as the other figures do not give the yearly and monthly amounts, then there should be 2 more amounts with clear reference to how many more years you need to contribute - it could mean you need 3 past years on top of purchasing all years going forward until retirement.  Post up more detail and someone will give a more accurate answer.  But as a starting point those 3 cheapest look good with the earliest not having a cut off until April 2026.

Current weekly £££.pp amount accrued up to April 2024
Number of full NI years 15-16 and earlier
Number of full NI years 16-17 and later
Tax year you reach state retirement
Any COPE amount.  If you have "You've been in a contracted-out pension scheme" on your forecast then click
here https://www.tax.service.gov.uk/check-your-state-pension/account/cope whilst logged into your tax account

chapattiartist

Dazed_and_C0nfused said:

If by "forecast" you mean you have already accrued £202.24 then buying 3 post 2016 years will take you to exactly £221.20, your Personal maximum.

As the 3 cheapest years are also post 2016 then they would be the ones to buy.

Thank you very much. Thats what I thought but just checking as they will close option to buy for pre 2016 in April next year.

chapattiartist

Do you know if it is possible and advisable to set up a direct debit with the NI people to pay in the future as I have 6 yars until I can claim....or would it be more advisable to bank my savings for interest and back pay them just before the claiming date arrives?

molerat

I would pay one year at a time around Christmas / new year just before the 2 year after the end of the year point so you pay the in year price before it increases.

RoystonV

Looking at buying 1 (possibly 2) years to max out my wife's state pension (payable from June 2034) and am presented with the following 'outstanding' years.

2019 to 2020	£348.70
2018 to 2019	£824.20
2017 to 2018	£824.20
2016 to 2017	£824.20
2015 to 2016	£79.25

Obviously she wants to buy 2015 / 16 first but the online option doesn't allow her to buy this particular year; instead, it offers 2019 / 20 as the primary option.

Are we missing something here?

molerat

It depends which particular system you are looking at as 15-16 may not add value.  If that is the new top up system where all years shown will add value then unfortunately that seems to be a quirk in the system and a phone call will be necessary.

RoystonV

molerat said:

It depends which particular system you are looking at as 15-16 may not add value.  If that is the new top up system where all years shown will add value then unfortunately that seems to be a quirk in the system and a phone call will be necessary.

Thanks molerat,

Let's hope someone answers the call before she retires........

chapattiartist

Thank you All, Esp. Molerat...very helpful. As requested here is more information.

You can get your State Pension on 2 June 2031

Your forecast is £210.51 a week, £915.34 a month, £10,984.11 a year

Your forecast

• is not a guarantee and is based on the current law
• does not include any increase due to inflation

You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2024

£164.46 a week

Forecast if you contribute until 5 April 2031

£210.51 a week

You can improve your forecast

You have shortfalls in your National Insurance record that you can fill and make count towards your State Pension.

The most you can increase your forecast to is

£230.25 a week

2023 to 2024

Year is not full

Pay a voluntary contribution of £767.80 by 5 April 2030. This shortfall may increase after 5 April 2026.

2022 to 2023

Year is not full

You have contributions from

Paid employment: £81.87

Pay a voluntary contribution of £674.50 by 5 April 2029. This shortfall may increase after 5 April 2026.

2021 to 2022

Year is not full

You have contributions from

Paid employment: £352.02

Pay a voluntary contribution of £53.25 by 5 April 2028. This shortfall may increase after 5 April 2026.

Looks like the price to backpay them has gone up since I last posted too.