Topping up SP

squashtraveller

This may have been asked - sorry. I am planning to take my work pension in the coming months and will no longer pay NI. I will be short of a full SP by ~3 years. Can I 'top-up' in the coming years so that I reach my max SP when available? Thanks

Dazed_and_C0nfused

squashtraveller said:

This may have been asked - sorry. I am planning to take my work pension in the coming months and will no longer pay NI. I will be short of a full SP by ~3 years. Can I 'top-up' in the coming years so that I reach my max SP when available? Thanks

If those 3 years are tax years before the tax year you reach State Pension age then yes.

But paying NI isn't what entitles you to a qualifying year in the first place.

Have you actually checked your State Pension forecast and fully understood what it means?

A lot of people under transitional rules, which you are, still think having 35 years is key.  When it isn't.

molerat

squashtraveller said:

This may have been asked - sorry. I am planning to take my work pension in the coming months and will no longer pay NI. I will be short of a full SP by ~3 years. Can I 'top-up' in the coming years so that I reach my max SP when available? Thanks

Yes you can, class 3 contributions.

Do you have gaps in your record ?  The vast majority who have a full record, even with a long contracted out history, should not need to top up after this year.

squashtraveller

Dazed_and_C0nfused said:

squashtraveller said:

This may have been asked - sorry. I am planning to take my work pension in the coming months and will no longer pay NI. I will be short of a full SP by ~3 years. Can I 'top-up' in the coming years so that I reach my max SP when available? Thanks

If those 3 years are tax years before the tax year you reach State Pension age then yes.

But paying NI isn't what entitles you to a qualifying year in the first place.

Have you actually checked your State Pension forecast and fully understood what it means?

A lot of people under transitional rules, which you are, still think having 35 years is key.  When it isn't.

Thank you - I think I have understood my SP forecast. I based my Q on what my statement said I would be entitled to should I continue to pay NI until my SP date. I will review and set aside funds to pay. Thanks again for the advice.