Quick question, backpaying voluntary NICs

barcelonadude1

Hey all, hope everyone is good
Apologies, I don't mean to clog up the forum but just a quick one as my deadline for paying is Thursday next week.
I only have 3 years on my NI record, the three years you get by default at the beginning, and now I have the opportunity to pay back the years up until 2019 (all class 3 which sucks, but anyways!) and then pay as I go along to get to the 35 I would need.
I just wanted to check with the forum if it would be 100% beneficial for me to pay these years. I am only 40 years old currently, born in 84 but I have just read about people maybe paying for years but then it wouldn't actually give them any additional benefit. I assume this wouldn't apply to me as I will be on the new state pension so any years I pay back I will be getting the full value/benefit of when the time comes?
Thanks so much all!

QrizB

If you're 40 years old, you've got ~28 years to go before you qualify for your pension. That plus your existing 3 would be 31, which is four short of 35 (and let's assume that you do need 35; check your forecast for yourself rather than assuming this).

So you are likely to need at least four of your back years. (Again, do check your forecast).

Buying more than that will be a matter of choice, rather than necessity.

barcelonadude1

QrizB, thanks so much for your reply.

Yeah checked my forecast and need 35, the back years would be cheaper thats why I was thinking of taking the hit now, paying 17 of them to give me 20 and then paying the next 15 as I go yearly.

Just wanted to check if it would definitely worth me doing though in terms of the years I buy actually increasing my pension as I've heard some people may be in situations where they might buy a year and it doesn't make any difference.  I'm 99% sure they would in my scenario as I think the new state pension applies to me but just wanted to make sure with some people in the know as they would be at class 3 so a lot of money!

Cheers

molerat

The "not making any difference" is over paying pre 2016 years when you already have in excess of 30.  The general pre 2016 years rule is less than 30 then making up to 30 will add value, between 30 and 34 adding more may or may not add value depending on personal circumstances and if already at 35 then no more can be added.  Those negative factors clearly don't apply to you.

barcelonadude1

Molerat, thanks so much just being paranoid!