Retiring Early - Incomplete NI Years for State Pension - Options?

thundyuk

Hi there,

I'm retiring at 48 with a modest income (really modest, I'm a bit of a Spartan) however I'm shy about four years of NI contributions to get the full state pension at aged 68 should I actually make it that far.

What can I do to top up those remaining years? I can pay them outright I suppose, but I'm sure that if you signed on UC / Jobseekers then the NI would be credited in the past.

I don't gain anything else as I have too much in the bank for UC to give me anything, however I'm curious if I apply does it still cover my NI credits or is there anything else I can do just to top the last few up?

Appreciate any advice.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6665212/retiring-early-incomplete-ni-years-for-state-pension-options

If you are retiring on what basis would you be applying for JSA?

webmasterpolo

I believe you can buy the missing years, the same as you would have paid the NI if you had worked them.

Storcko14

UC and JSA both qualify for NI. But if you apply for JSA you would need to prove you are looking for work, attend interviews, meet with a coach and also prove that you didn't leave your previous employment without good reason. So, it doesn't sound like it fits your circs.

Could you develop a hobby or interest into self-employment and then pay Class 2 NI voluntarily?

Ms_Chocaholic

Do you have any incomplete years on your record that you can pay to complete.

thundyuk

https://forums.moneysavingexpert.com/discussion/comment/81972585#Comment_81972585

I didn't say that I was. I was referring to examples of when it's been credited (to my recollection), that's all.

thundyuk

https://forums.moneysavingexpert.com/discussion/comment/81972605#Comment_81972605

Yeah, I was thinking more just applying for UC with no expectation of any payments, as it's means tested. I was just wondering if UC would then credit the NI payments.

A bit like when you're in full time education.

Class 2 wise, I don't know, I don't have any hobbies that would make anything and the reason I'm taking such early retirement somewhat precludes self employment.

thundyuk

https://forums.moneysavingexpert.com/discussion/comment/81972626#Comment_81972626

I had two, I've paid them both :) Good idea though.

One of them was only short two weeks absolute bargain at like £26!

bownyboy

I retired at 49 with 5 years remaining. I've simply paid the £900 or so each year in my HMRC account.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81972641#Comment_81972641

This page may help. It says you can get NIC credits if you receive UC. Presumably that means if you don't qualify for UC because you have too much money then you won't get the credits.

National Insurance credits: Eligibility - GOV.UK

I think a favourite activity mentioned on here which qualifies for credits is looking after grandchildren.

Storcko14

https://forums.moneysavingexpert.com/discussion/comment/81972641#Comment_81972641

You'll only get NI credits if you qualify for a UC payment.

If you definitely can't pay Class 2 don't rule out Class 3 voluntary as the ROI on that is still pretty hard to beat. IIRC, it costs c.£900 p.a for a c.£350 p.a uplift. Big but coming though. At 48 I'd wait in case you end up going back to work before SP age and filling the 4 years that way.