Gaps in National insurance contributions

coralie19

Hi everyone,

I’m trying to decide whether it’s worth paying voluntary National Insurance contributions to fill some gaps in my record.

I’m 44 and my State Pension age is 2049.

My forecast says:

• £203.93 per week (£10,640.78 a year)
• “£203.93 is the most you can get”
• It assumes I’ll contribute another 24 years.

I currently have 7 qualifying years on my record.

I have two gaps I can fill:

• 2022–2023: £175
• 2019–2020: £603 (deadline to fill this is the end of this tax year)

From what I understand, because my forecast already assumes another 24 years of contributions and says £203.93 is the maximum I can get, filling these years wouldn’t actually increase my final pension – it would just mean I need fewer future qualifying years.

Does that sound correct, or is there any scenario where paying these years would increase my eventual State Pension?

Thanks very much for any guidance.

QrizB

Do you plan to work continuously from now untl State Pension Age?

Your forecast also tells you how much SP entitlement you've already earned. What's that number?

coralie19

Thanks for replying.

I do plan to continue working. I’m currently self-employed and expect to keep working until State Pension age, although of course I can’t guarantee there won’t be occasional gaps.

My forecast page doesn’t show a figure for how much State Pension I’ve already built up. It only shows:

• Forecast: £203.93 per week (£10,640.78 per year)
• It assumes another 24 years of contributions
• I currently have 7 qualifying years
• It says “£203.93 is the most you can get.”

Hope that helps.

TadleyBaggie

that’s as expected, no state pension is payable until 10 years have accrued.

p00hsticks

AS far as I can see it purchasing those extra back years should increase your forecast, as your current predicted amount is under the maximum (currently £230.25 a week) and you don't have enough years going ahead until State Pension age to reach that maximum.

Are you sure it doesn't say anywhere in the forecast that you can potentially increase the headline amount further by filling in past gaps ?

coralie19

IMG_5530.jpeg

Here is the screenshot of the forecast page in case it helps.

I assumed that filling the gaps would increase the State Pension as well, since the forecast (£203.93) is below the current full new State Pension, but the page also says “£203.93 is the most you can get”, which confused me.

Does that wording mean filling the gaps would only reduce the number of future years I need rather than increase the final amount?

coralie19

Here’s a photo of my forecast page

coralie19

Forecast page

QrizB

Unless the government makes some sort of radical change to the state pension in the next 24 years, filling those two years will increase your forecast (and get you two years closer to having 10 years).

DRS1

It does seem odd that they say £203.93 is the most you can get. I wonder if it has something to do with the note about being abroad - that is not something I see on my forecast.

The £203 figure seems to be based on you only being able to contribute for 31 years. I am wondering: did you only start paying NICs after 2016? Most people your age would have some pre 2016 element.

It would be a good idea to call the Future Pension Centre to see if they can confirm that your £203.93 figure would go up if you topped up those missing years. I think that is 0800 731 0175.

molerat

There is certainly something wrong with that forecast. In your situation any post 2016 gaps must add to your pension amount so there should be a "The most you can increase your forecast to is £217.08" paragraph below that. You need to speak to FPC and see what they have to say. Were you self employed during those years ?