missing NI contributions for state pension

Amondo

I am thinking of buying 3 missing years NI, at c£2400, to boost my state pension to near maximum allowed. I reach state pension age Apr 2027. I'm a little concerned the government could, potentially, introduce means testing before i reach pension age, which would impact me as i have a company pension. So £2400 would not be a sound option if my state pension was reduced. Any thoughts on the risk of this happening would be welcome. I assume any means testing, if introduced, would have a reasonable lead in time, ie, beyond 2027. Any thoughts? 

MallyGirl

it would be quite unpopular so it would likely have consultation/long lead time

eskbanker

If you're concerned about what could happen between now and 2027, why not defer the purchase of the extra years until closer to the time, assuming the gaps are recent years?  They'd be slightly more expensive, but if you stick the money in a decent savings account that effect should be negligible.

QrizB

Amondo said:

Any thoughts? 

It's now 2025.

If the government announced means testing of the state pension tomorrow, not only would there be grey-haired rioters in Parliament Square on the following day, they'd be tied up in judicial review for years.

I think you're safe.

(In my opinion, if they were to do this [and I don't think they will] it's far more likely they'd follow the Child Benefit playbook and claw it back through an income tax-like charge. It's cheaper to administer, less open to fraud and a lot less intrusive.)

Dazed_and_C0nfused

QrizB said:

Amondo said:

Any thoughts? 

It's now 2025.

If the government announced means testing of the state pension tomorrow, not only would there be grey-haired rioters in Parliament Square on the following day, they'd be tied up in judicial review for years.

I think you're safe.

(In my opinion, if they were to do this [and I don't think they will] it's far more likely they'd follow the Child Benefit playbook and claw it back through an income tax-lile charge. It's cheaper to administer, less open to fraud and a lot less intrusive.)

Probably not technically "means testing" but you could argue that is basically what already happens now.

dinosaur66

i take it you have under the 35 years national insurance contributions in order to want to top up 3 years ?

also guess you have gone to hmrc website to check all your payments

on the off chance you do not know max you have to pay is 35 years any more than this does not give you any more money for your pension

dinosaur66

should have added once you get to 35 years max paid you still carry on paying national insurance until you retire

molerat

dinosaur66 said:

i take it you have under the 35 years national insurance contributions in order to want to top up 3 years ?

also guess you have gone to hmrc website to check all your payments

on the off chance you do not know max you have to pay is 35 years any more than this does not give you any more money for your pension

dinosaur66 said:

should have added once you get to 35 years max paid you still carry on paying national insurance until you retire

Why is 35 years of any relevance ?

eskbanker

dinosaur66 said:

i take it you have under the 35 years national insurance contributions in order to want to top up 3 years ?

also guess you have gone to hmrc website to check all your payments

on the off chance you do not know max you have to pay is 35 years any more than this does not give you any more money for your pension

dinosaur66 said:

should have added once you get to 35 years max paid you still carry on paying national insurance until you retire

No!  35 years only applies to those born this century and is irrelevant to everyone else, like OP, who are on transitional arrangements, meaning that the number of years needed is highly variable and based on a personal calculation, not a standardised figure.

It's clear from OP that they've checked their state pension forecast already though, so they don't need advice about how many years, especially if wrong.... 

TadleyBaggie

dinosaur66 said:

should have added once you get to 35 years max paid you still carry on paying national insurance until you retire

Unless the working life is all post 2016, the 35 years NI to get a "full" pension is a myth, depending on personal circumstances it may require less years, or it may require many more years. We have seen cases where up 49 years contribution were needed.

dinosaur66

ok thank you all for jumping down my throat

i stand corrected

i thought state pension was same for everyone if you reach pension age after 2016 ie 35 years

never new different rules for different jobs

i have been a self employed sole trader from school -for some reason my first full year of national insurance on hmrc starts 1981/82 tax year but i never started trading to end of 82  

my HMRC  pension  forecast says something to the effect of full 35 years contributed   -maximum years reached  / you will receive a forecast of £221.20 carry on paying NI after this if working but it will not increase ammount you will receive.