Worth paying missing NI years to be able to stop working (and paying NI) before 67?

Sportacus

If I work to 67 I'll have the full 35 years NI payments, but only just, I've got three gaps from time abroad. If I were to pay these gaps now, then I could stop work at 64 and still get my full state pension at 67 (I hope to have enough private pension to tide me over till 67).

However, I'm wondering if it would be possible and cheaper to not pay these gaps now, but if I get to 64 and want to retire, use the lump sum from my private pension to pay three more years of NI then. Or maybe keep working part-time to 67, just enough to cover the NI?

Brighty75

When are the gaps from? Currently you can pay for missing years back to 2006, but that changes in a couple of days time and it will only be gaps in the last 6 years you can pay for, so 2019.
Are you sure you need 35? Anyone with a NI history before 2016 could be different, i max out this year and only have 30. have you checked your online forecast?

Sportacus

Gaps are since 2006

molerat

Not enough information in your post to give any sort of sensible direction.  Pre 2016 years may or may not add to the pension.  If you were overseas and working you may be able to pay class 2 which at around £180 could be worth it.  Post up some anonymous detail from your forecast and NI history and someone will give their thoughts.

Current weekly £££.pp amount up to April 2024.
Number of full NI years 15-16 and earlier
Number of full NI years 16-17 and later
Tax year you reach state retirement
Any COPE amount.  If you have "You've been in a contracted-out pension scheme" on your forecast then click
here https://www.tax.service.gov.uk/check-your-state-pension/account/cope whilst logged into your tax account
Years which show not full and prices

Sportacus

Don't have all the information requested to hand, but thinking about it some more it's obvious that I shouldn't pay these gaps, better to put the 3x£824 in a savings account now, and when I'm 64 and retired I use those savings to pay the contributions for the following three years (to take me to 67, and so my full 35 years of contributions).

This way I'm not wasting money if I end up working to 67 anyway, I'll still have those savings.  The only downside is what if I want (and am able) to retire at 61?

MallyGirl

Have you confirmed that you need 35 - it could be 30 or 40+ depending on your circumstances

MallyGirl

Sportacus said:

Don't have all the information requested to hand, but thinking about it some more it's obvious that I shouldn't pay these gaps, better to put the 3x£824 in a savings account now, and when I'm 64 and retired I use those savings to pay the contributions for the following three years (to take me to 67, and so my full 35 years of contributions).

This way I'm not wasting money if I end up working to 67 anyway, I'll still have those savings.  The only downside is what if I want (and am able) to retire at 61?

Note that the price for the missing years may go up.

Marcon

Sportacus said:

Don't have all the information requested to hand, but thinking about it some more it's obvious that I shouldn't pay these gaps, better to put the 3x£824 in a savings account now, and when I'm 64 and retired I use those savings to pay the contributions for the following three years (to take me to 67, and so my full 35 years of contributions).

This way I'm not wasting money if I end up working to 67 anyway, I'll still have those savings.  The only downside is what if I want (and am able) to retire at 61?

Then you will be able to buy more than 3 years (ie the years from retirement to reaching state pension age) if doing so is worthwhile.

QrizB

Sportacus said:

If I work to 67 I'll have the full 35 years NI payments, but only just, I've got three gaps from time abroad.

What does your state pension forecast actually say?

Do you need 35 years? You might only need 30 (or less), or you might need 40 (or more).

Those three gaps might be important or they might be irrelevant.