Have permanently stopped working is it worth paying off the final remaining gap in NI contribution?

Topiary

Am 59 yrs old male and have fully paid up NI contributions with only one gap remaining which will equate to a weekly pension from 6/3/2034 of £227.14

The final gap payable will cost me £907.40 (possibly due to be increase from 6/4?) and this increase the weekly pension by £3.11 to £230.25

Is it worth or beneficial to pay this final missing gap off?

Thanks

Silvertabby

I would say yes - the £907.40 is a one-off, but the £3.11 is index linked (currently triple locked) for life.

Topiary

Thanks appreciated 👍️also nice to know its fully paid up

Dazed_and_C0nfused

£3.11/week will become £3.25/week in just a few days 🤑

flaneurs_lobster

Tricky, £900 1-off cost to get £160/yr in 10 years time.

So bit more than 5.5 years until positive return once in payment.

But that £160 will be increased by the annual SP uplift which we can probably/ assume will at least match inflation, both between now and SP age and once in payment.

Fit, healthy 59 yo with a spare £900? I would.

Unwell, overweight, 40 fags/day, heavy drinking 59 yo? Not so much.

Merlin139

You could sign on to get your NI contributions paid for a year. You only need to make contact with the Job Centre once every 3 months.

I did it for a couple of years looking for part time work. Yes you need to to be looking for work, but you can decide what type of work you want to do.

Or get a part time job paying between £125 to £242 and your NICs are Free.

Diaz09

Given you've permanently stopped working, also consider whether you'd be eligible for pension credit when you reach state pension age. If your total retirement income including the higher pension would still fall below the pension credit threshold, you'd get topped up anyway - making the extra £3.11 weekly less valuable. Worth checking the pension credit calculator to see if this £900 payment would actually increase your overall income in retirement.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81974239#Comment_81974239

What's the risk that Pension Credit will still exist in its current form in 2034? Not sure if financial planning should take into account a means-tested benefit whose terms may well change or which may not exist at all.