HRP versus qualifying year for state pension!

MEJULIE_4

Which is best, a qualifying year for state pension or a HRP awarded year? I have the choice of paying for a couple of years shortfall, but also have these years awarded for HRP. As these years are already covered by HRP is it worth paying for them as well? Any comments gratefully received.

CIS

A qualifying year gives your 1 year towrds your basic pension whereas an HRP year reduces the years you need for a full pension

example.

You need 39 years, you have 20 qualifying years, you get 100/39 x 20 =52%

You need 39 years, you have 19 qualifying years you get (100/38*) x 19 = 50%
* years reduced to 38 by 1 HRP yr

You need 39 years, you have 15 qualifying years, you have the option of paying for 5 more years or receiving 5 Yrs HRP. You currently have 39%

1)You pay 5 years, at most about £1800, you now have 52%, a 13% increase

2)You take the 5 years of HRP, you now have 45%, a 6% increase.

Paying the 5 yrs in the example above costs at most £1800 in return for about £500 a year extra, the HRP gets you approx £250 a year.