Pension credits back-fill date confusion

bicyclist

In an article about pension credits on this site, it's mentioned (more than once) that you can 'only' buy back up to 2016 (from 2006). I just spoke to the pension helpline and asked about this - as their recorded message also states the same. The customer service advisor said no, I can buy back after that date (i.e. also tax year 2016/2017 and up to most recent) if I need to.

I thought the error may be because originally the extended date was due to be cut off a couple of years ago (making that cut-off date correct - going back 6 years from then), but there is one sentence that says "If a shortfall in State Pension is likely and you've NI gaps in the years 2006 to 2016, you need to decide by the deadline of 5 April 2025 whether to top up." Indicating you CAN'T top up the couple of years after that. Who is correct?

molerat

Lots of misunderstandings and misreadings, many of the statements refer to particular circumstances.

Normally you can fill years up to 6 years back.

The 2016 pension change gave a dispensation to buy an additional 10 years to 2006-07

That was due to end in April 2023 but was extended to April 2025

From April 2025 the normal 6 year rules will again apply so years 2018-19 and earlier will cease to be available

Whether years 2015-16 and earlier will add to your pension will depend on personal circumstances, generally for those with a contracted out history those years will not add value.

So until April any gap back to 2006-07 is available to buy.

bicyclist

molerat said:

Lots of misunderstandings and misreadings, many of the statements refer to particular circumstances.

Normally you can fill years up to 6 years back.

The 2016 pension change gave a dispensation to buy an additional 10 years to 2006-07

That was due to end in April 2023 but was extended to April 2025

From April 2025 the normal 6 year rules will again apply so years 2018-19 and earlier will cease to be available

Whether years 2015-16 and earlier will add to your pension will depend on personal circumstances, generally for those with a contracted out history those years will not add value.

So until April any gap back to 2006-07 is available to buy.

Thanks. Apart from the earliest year I can buy, the rest have been on a self-employed basis. That year is a partial, as is the next (first self-employed) year... and the following 4 years are empty (all self-employed). I'll have to worry about 2019/2020 onwards at another time!

molerat

With self employed class 2 there are other considerations such as failing to register for small earnings exception which may bar you from class 2 for some early years.  Something that needs to be discussed with HMRC and the clock is ticking.