Is it worth topping up NI contributions for my wife?

logies

I checked my wife's SP forecast and it says her forecast is £230.25 a week, £1,001.18 a month and £12,014.12 a year.

However, it further goes on to say that she needs to continue to contribute NI to reach her forecast:

"Estimate based on your NI record up to 5 April 2024 : £229.13 a week"

"Forecast if you contribute another year before 5 April 2033 : £230.25 a week"

She is not working and doesn't intend to work before SP age which she will reach in 2034.

I assume it's not worth topping up either of the 2 missing years - 2022/23 for £923 contribution and 2023/24 for £907.40 contribution to gain in effect £1.12? Or am I missing something?!

Ayr_Rage

You aren't missing anything as long as the goal posts are not moved by the current or a future government.

Invest those two years worth of NI top ups in something else.

Muttleythefrog

I can't see it being worth it unless rules change. She'd never live long enough to benefit and even then you've have to factor in the lost interest on £900 (£36 a year at 4%) - reality she would lose out filling a full year.

logies

Many thanks, good advice - think she’ll put it into her ISA instead.

Sarahspangles

Don’t forget if she provides care at some point she may qualify for carers or specified adult childcare credit to top up that final bit.

SteveInSomerset

Assuming the state pension never increases, then the payback on that £907.20 at £1.12 per week will be just over 15 years. Of course, the pension will go up with inflation in that time so the payback will be shorter, maybe 10 years? After that every single week your wife lives the additional pension will be pure profit.