Interaction of voluntary NICs and deferring

nickane

It's a heartbreaking situation.  She has been very unlucky with rule changes.  Twenty years ago, she spent a lot of time complaining about the SPA rising from 60 to 65 (over 64.5 for her).  All her financial planning was hinged around the State Pension, but she is completely computer illiterate and never asked anyone for help.  By the time she was able to claim, her landline had been disconnected, she hadn't opened the door to anyone, including social services, for years and she was too mentally unwell to figure out how to claim.  We always assumed that she was making voluntary NICs as her ex-husband said she always did when she lived abroad.  It seems that she thought that being a stay-at-home Mum meant she didn't have to pay, but by the time she moved back, her youngest was already 14.  Perhaps she was waiting until closer to retirement age to make the NICs.  It's not clear.  I have been trying to alert her of this looming deadline since reading an email about it in MSE a year ago and was very relieved when she accepted my help with two months to go.  At that point, I was still assuming she had a full record, but wanted to be sure.  We've only just realised how significant the gaps in her record are.  I didn't expect topping up the NICs to be such a lengthy process for people over SPA.

DRS1

1. Is there a way I can find out her SP entitlement without having to take a day off work, driving 90 mins each way to visit her when the phone lines are open and spending ages on the phone with her in the room? 

Just a thought but do you have a phone which makes conference calls?  And is she an early riser?  If so perhaps arrange to call her at 7.59 am one day and then conference in the DWP or whoever you are calling.

DRS1

it seems she just needs to pay 12*£824.20 with the right info in a letter and the cheque on the back and we're golden.

You said somewhere that she had some part years.  Are any of them among the 12 you are filling?  If so they should cost less than £824.2.  Usually the detail for the year should say what the cost is but I am not sure if that is information which disappears at SPA.

nickane

No.  They're all full years missing.  She hasn't worked for 30+ years.

molerat

DRS1 said:

1. Is there a way I can find out her SP entitlement without having to take a day off work, driving 90 mins each way to visit her when the phone lines are open and spending ages on the phone with her in the room? 

Just a thought but do you have a phone which makes conference calls?  And is she an early riser?  If so perhaps arrange to call her at 7.59 am one day and then conference in the DWP or whoever you are calling.

There is no way to get that information on the phone, it is simply not available.  Once applied for the gnomes will get to work and calculate it, only then will the answer be known.

nickane

@molerat

So, if I get her a chequebook and go that route to make the payments, do you really think it will take several months for the record to change?

DRS1

I made a top up in 2022 (and I am under SPA).  It took 3 months before the credited years showed as full on my Personal Tax Account.  They were busy then and I bet they are busier now.  I think it normally takes longer if you top up when over SPA than if you do it under SPA.

molerat

nickane said:

@molerat

So, if I get her a chequebook and go that route to make the payments, do you really think it will take several months for the record to change?

The NI record should change in around 6 to 8 weeks, maybe quicker, maybe a lot longer as they are snowed under.  How many years are showing as full on her NI record ? You also need to read the text at the bottom as there may be some that are not showing, usually pre 1975, and the text will state how many. 

nickane

She has 6 pre-1975 as you say.  She has a further 14 scattered up until about 1998, when she last received CB.  20 in total, all pre-2006.  She can buy 12 and they're all full price.

molerat

With 20 years she will have a minimum of £113.00 (if contracted out) to £126.40 (or maybe more but that's unlikely).  With only 20 years she can safely purchase all 10 pre 2016 years plus the 2 post.  They will add between £69.14 and £75.84 per week to her pension.  I suppose the cheque and letter in the post would work as I doubt HMRC can refuse to accept and allocate a payment, maybe you could argue on the phone for a code to make a bank payment.  It would then be a case of watching her NI record and applying for the pension when it is updated leaving them to work it all out.  With reference to child benefit, when was she claiming child benefit - you say up to 1998 but when was the first child born and did she receive child benefit from that first birth ?

Once in receipt of the pension it will be shown as 2 amounts on the annual letter, the basic pension and the deferment uplift with the main pension being increased with the triple lock and the uplift amount with CPI.