Filling in N.I gaps when I lived abroad

spainboy1281

In a nutshell I'm 52 and if I work til 67 then I do qualify for the full 35 years state pension however I'd probably like to retire at 64 which means I'd be 3 years short of the 35 years.
I can pay for them at nearly £900 per year HOWEVER I did love in Spain from 2009-2010 so I was advised to apply with Gov.uk for National Insurance contributions whilst living abroad which could amount to the cost being about £250 per year if approved.
Today I did the online form but it says expect a reply by the 25th April as they were still working on forms from September.
Seeing as the deadline to pay is 5th April 2025 then what would be the point of them contacting me before the 25th April as I'd clearly wouldn't be able to pay for the gaps if approved.
Any thoughts or advice on this please. Thank you.

Dazed_and_C0nfused

Why do you think having 35 years is relevant to you?

Have you actually checked your forecast to see how much you have accrued to date?

spainboy1281

Dazed_and_C0nfused said:

Why do you think having 35 years is relevant to you?

Have you actually checked your forecast to see how much you have accrued to date?

It says on Gov.uk forecast I need 15 more years for the £221 which would take me to the age of 67.

If I choose to retire at 64 then is there a way to carry on paying NI contributions in the future for the 3 years forward or would I need to fill in these gaps now before the deadline.?
Is my thinking right or are there other ways? Basically I want to retire at 64 but Im thinking I won't get the maximum pension at pension age?

molerat

So you have that many gaps in your record that you need another 15 to reach the full pension ?

I believe that if you have made an application for paying class 2 then that will be held open for you to pay beyond the cut off date.

How much is showing as your amount at April 2024 ?

spainboy1281

molerat said:

So you have that many gaps in your record that you need another 15 to reach the full pension ?

I believe that if you have made an application for paying class 2 then that will be held open for you to pay beyond the cut off date.

How much is showing as your amount at April 2024 ?

The state pension to date is £134 as I've contributed 20 years so far. I can pay for Upto 4 years which would cost me £3400 then I'm guessing I'd only need 11 more years of NI contributions instead of 15. As I worked abroad that "could" be reduced to about £1000 or less. If I work til 67 I get the full qualifying years!!!!

My question is I was hoping to move back to Spain at 64 so guessed filling gaps now would be the best option although no one can predict the future and part of me thinks it might be a waste of money if I buy the gaps now. Is there another option to buy forward nearer the time maybe if I do end up wanting to retire at 64 instead of 67.

I really don't know the best option. I'm really reluctant to pay money now.

Dazed_and_C0nfused

spainboy1281 said:

molerat said:

So you have that many gaps in your record that you need another 15 to reach the full pension ?

I believe that if you have made an application for paying class 2 then that will be held open for you to pay beyond the cut off date.

How much is showing as your amount at April 2024 ?

The state pension to date is £134 as I've contributed 20 years so far. I can pay for Upto 4 years which would cost me £3400 then I'm guessing I'd only need 11 more years of NI contributions instead of 15. As I worked abroad that "could" be reduced to about £1000 or less. If I work til 67 I get the full qualifying years!!!!

My question is I was hoping to move back to Spain at 64 so guessed filling gaps now would be the best option although no one can predict the future and part of me thinks it might be a waste of money if I buy the gaps now. Is there another option to buy forward nearer the time maybe if I do end up wanting to retire at 64 instead of 67.

I really don't know the best option. I'm really reluctant to pay money now.

If you have already accrued £134 then you only need a further 14 (post 2016) years to reach your personal maximum, not 15 years.

Each post 2016 year adds £6.32, until you hit £221.20.

13 x £6.32 = £82.16

£82.16 + £134.00 = £216.16

A 14th year will add the final £5.04.

You may have already earned enough in the current tax year to add one of the 14 years needed.

p00hsticks

After the 5th April 2025 you'll only have the option of paying for the past six years. so if you need 15 you'll need to start buying more by the time age of 58 at the latest. 

So your options are either to see see if you can get the purchase of those cheaper Class 2 payments through before April 6th 2025 (assuming that they will accept payment after the cut off date if you have started the process before) or hangoing on but paying for more expensive Class 3 years.

But do check that that is the right number of years you need- 35 only applies to those who started their working lives after the introduction on the new State Pension in 2016 as anyone older falls under transitional rules and may need more or less depending on their individual records.

molerat

If you have £134 then another 14 years is required, £221.20 - £134 = £87.20 / £6.32 = 13.8 so 14 full years.  Outside of trying to fill those class 2, even those are not really necessary, I wouldn't really bother with past years. If you are working you are going to get there anyway with a possible top up at the end if you stop work early.

spainboy1281

molerat said:

If you have £134 then another 14 years is required, £221.20 - £134 = £87.20 / £6.32 = 13.8 so 14 full years.  Outside of trying to fill those class 2, even those are not really necessary, I wouldn't really bother with past years. If you are working you are going to get there anyway with a possible top up at the end if you stop work early.

Thanks. That's probably the answer I was hoping to hear. It's a lot to layout now

spainboy1281

p00hsticks said:

After the 5th April 2025 you'll only have the option of paying for the past six years. so if you need 15 you'll need to start buying more by the time age of 58 at the latest. 

So your options are either to see see if you can get the purchase of those cheaper Class 2 payments through before April 6th 2025 (assuming that they will accept payment after the cut off date if you have started the process before) or hangoing on but paying for more expensive Class 3 years.

But do check that that is the right number of years you need- 35 only applies to those who started their working lives after the introduction on the new State Pension in 2016 as anyone older falls under transitional rules and may need more or less depending on their individual records.

I started my working life in 1989 but the forecast on the Gov website suggests I'll get £221 in 19 more NI years. Is this an estimate only or will I get £221 if I make 19 more years of payment? 
If it's only estimated then how will I find out what I will get if the forecast is not accurate?

molerat

The forecast is accurate based on the information they hold on record for you, it is only inaccurate if your record is wrong or the goalposts move in the future.  There are several things in play, your current amount accrued, the number of years you need to reach the full amount and the number of years until state retirement. The top line big green box shows how much you can achieve adding available forward years to your current amount so if you have in excess of 14 left before retirement then that will show £221.20.  The forecast should state clearly how many more years you need to add to reach that amount.  If you are working beyond that number of years you will still need to pay NI as it is simply an employed earnings tax.