HMRC options to buy back NI years.

hatnezmaturestudent

I'm reach State Pension age in September.  I use the HMRC App and they are offering me 2 options to buy additional NI years.  The options give me either an additional £6pw or £12pw.  Whichever I choose, it would take two years to break even.   I've got to decide by 5 April.  My questions is;

Do these options include the forthcoming 4.1% increase in the state pension on 6 April?

Thank you.

QrizB

hatnezmaturestudent said:

Do these options include the forthcoming 4.1% increase in the state pension on 6 April?

Buying each extra year will benefit you by 1/35th of the current New State Pension.

At present,  that's 1/35th of £221.20 which is £6.32.

When the pension goes up on the 5th of April, so will the benefit from each extra year. But also the cost of buying past years will increase, so it will still take the same amount of time to break even.