Would you pay these NI gaps?

Itslikealittleprayer

Hello, I am a new user, please be gentle. I'm trying to be organised about my pension. I'm 37.

I've looked on the government gateway and it says I have payable gaps from 2006-2011 (it won't let me pay these online but I gather I can tell HMRC I want to and that counts if done before the deadline). 

My pension summary says I am on target to get the full state pension in 2055 provided I keep paying national insurance (I am both PAYE and self-employed. Most of my income is from self-employment). 

However, I have the opportunity to buy back these years (it was all time when I was studying.) What would be the benefit in my doing so? Would it be a bit of an insurance policy if, say, there comes a time when I am unable to work? 

I have a child with additional needs so I just want to make sure that I am covering myself in the eventuality of any possible hard times in the future. My mother was a carer for a family member and had gaps in her NI as a result. I know she found it stressful and had a mad few years of working herself ragged to make up the shortfall.

Would you pay the gaps if you were me? It's a couple of grand which I'd rather have in savings but if it's worth it then I will do it.

If it's relevant, I do not own a house, I am still renting. I have no debt. I am married to someone who works for a local authority, so will have a pension. I have a workplace pension, too, but as it's only for a part-time role it isn't loads (I pay an extra £100 a month or so into it which my employer doubles.)

Thanks

molerat

Without more information no one could say if it is worth it, with 30 years left to go it is unlikely a sensible idea.  

Are they part paid cheap gaps ?

What is your current amount at April 2024 ?

p00hsticks

In your shoes I wouldn't. If you carry on working you will have wasted your money, if you stop working in the future earlier than State Pension age you'll still have the opportunity to buy or get creditted with them later. Note that benefits such as  Carer's Allowance these days come with NI credits to help those now in a similar position to your mother. 

You have plenty of time going forward,  especially as you say you are self employed and so have the opportunity to buy the cheaper Class 2 contributions - just make sure you do and keep an eye on your record in the future.    

savergrant

So long as you have 35 qualifying years before your retirement date a few gaps won't affect your pension. If you are very close to qualifying in a particular year it may be worth paying a small topup, particularly if you still need to make 20 or more qualifying years. However the chances are that you will either qualify or be able to topup most of the next 31 years. 
How much would each particular year cost to topup? 

molerat

savergrant said:

So long as you have 35 qualifying years before your retirement date

Where does this 35 years come in to it ?

cutestkids

savergrant said:

So long as you have 35 qualifying years before your retirement date a few gaps won't affect your pension. If you are very close to qualifying in a particular year it may be worth paying a small topup, particularly if you still need to make 20 or more qualifying years. However the chances are that you will either qualify or be able to topup most of the next 31 years. 
How much would each particular year cost to topup? 

35 years means nothing in this scenario. OP is 37.
The 35 year figure only applies to people born this century. Anyone else xpuld need anything from around 29 to 49 years.

Itslikealittleprayer

molerat said:

Without more information no one could say if it is worth it, with 30 years left to go it is unlikely a sensible idea.  

Are they part paid cheap gaps ?

What is your current amount at April 2024 ?

The gaps would cost between around £400-800 per year to fill.

Not sure what you mean by current amount? 

Sarahspangles

Itslikealittleprayer said:

molerat said:

Without more information no one could say if it is worth it, with 30 years left to go it is unlikely a sensible idea.  

Are they part paid cheap gaps ?

What is your current amount at April 2024 ?

The gaps would cost between around £400-800 per year to fill.

Not sure what you mean by current amount? 

How much pension have you already qualified for. The sums are complex but if you have years that are less expensive which you could fill before the window of opportunity closes, AND you’re reasonably sure you’ll have to buy years at some point, it might be worth doing so. Because years pre-2016 don’t necessarily count the calculations are required to confirm whether it really is worthwhile

savergrant

"My pension summary says I am on target to get the full state pension in 2055 provided I keep paying national insurance"

How many more years' contributions do you need to make? Or to put it another way how many more years can you afford to miss?
It is unlikely to be worth paying £400 to topup one year, unless you really need that year to count.