Thanks, now settled

i_like_cats

Thanks, now settled 

molerat

I assume those years are showing as "checking", usually down to you being registered as self employed and not paying class 2.  To get them "unlocked" you will need to call HMRC, there is no other way to give you a chance before the cut off.

Older years are cheaper than most  new years because of the way the prices increase and in 2023 a hold was put on the increase for the older years.

All years up to 19-20 are £824.20, 20-21 at £795.60, 21-22 at £800.80, 22-23 at £824.20 (when the price of old years was locked), 23-24 and 24-25 at £907.40 and 25-26 at £923 (the price which years 19-20 to 22-23 will increase to from April).

You have got another 22 years so looks like you could just scrape a full pension going forward - the forecast top box should state the amount you could possibly receive, but all of those available years will add to the pension.

molerat

Prior to 2010 you got 3 freebie years for being 16, 17 and 18. Generally you don't need to pay NI whilst at uni because you will have enough going forward - say 22 to 66 is another 42 years to get the necessary amount, pre 2010 you would have needed them all !

All those locked years are because HMRC think you were self employed and should have been paying class 2 with no other contribution streams to say otherwise so it is likely they will unlock them all.

Does your forecast show £221.20 in the top box ?

Is 23-24 showing on your record yet ?

If you were actually self employed for some of those years you could be entitled to class 2 rates and going forward would you be self employed ?

Tough decision to make on paying those full priced years though, one that only you can decide.

molerat

Class 2 is only £182 for 25-26 so not a huge increase.  The forecast only ever gives the more expensive class 3 price.

QrizB

i_like_cats said:

Have they changed it now so that the freebie years start at 18?  It would make sense for them to, because so few people leave school at 16 these days!

I don't think there are any freebies any more.

i_like_cats said:

Yes here’s what my forecast says: "Your forecast is £221.20 a week, £961.83 a month, £11,541.90 a year.”
I become eligible for it in 21 years.

Nothing about improving your forecast? If not, then the system seems to think that you can get a full pension with 23-24 plus the next 21 years, without buying any previous years.

Do you expect to be paying NI or getting credits from now until State pension age?

i_like_cats said:

For the more recent years like 2020, 2021, 2022, will it cost vastly more to pay the class 2s now, than it would if I’d done so when I submitted my self-assessment returns?   Costly mistake by me if so!

If HMRC agree that you are eligible to pay Class 2s, you'll pay the current Class 2 rate (rather than the rate that applied in those years). That's still a bargain when compared to Class 3s.

p00hsticks

i_like_cats said:

Have they changed it now so that the freebie years start at 18?  It would make sense for them to, because so few people leave school at 16 these days!

No. The 'freebie' years for 16. 17 and 18 year old were given when far more NI years were required to get the full ('basic') state pension - 44 years for a male (when their State Pension Age was 65) and 39 for a female (who reached SPA at 60) -  which would have made it difficult for those staying in full time education to reach the target.  

They were done away with in 2010 when the number of years needed was reduced, and so there was more opportunity to obtain the requisite number of years after leaving full-time education.