Frozen UK Pension and Voluntary NICs.

[MartinL]

I looked at my National Insurance Record online the other day. It said that I had until the end of this tax year to make voluntary NICs for 6 of the years I've been in Thailand - 2010/11 > 2015/16. The necessary payment for each year was stated and working out how much extra pension might result is easy enough. I know it's a good deal, having paid voluntary NICs in the past, so would be inclined to make the extra payments.

 

I'm already receiving my State Pension but I shot off a query to the International Pension Centre asking whether, as an existing pensioner, I could make these extra payments (it's seems possible according to MoneySavingExpert). I also asked whether payments would result in increased pension payments since my pension is frozen. I'm sure DWP would be happy to take the money and then say "Frozen pension = no extra".

 

Has any existing pensioner been through this process and found out whether voluntary NICs increase their existing frozen pension?

[topt]

On 6/16/2024 at 7:03 PM, MartinL said:

Has any existing pensioner been through this process and found out whether voluntary NICs increase their existing frozen pension?

Paying extra/voluntary NICS would make no difference to the "frozen" aspect of a pension. It depends on how many years you had when starting to take it and whether you are already at the maximum or not which also depends on whether you come under the "old and new" levels.

[BritManToo]

Voluntary Nic payments from the old pension system years (before 2016) often make no increase to pensions paid out under the new pension system.

 

That's why you have to ask them.

Edited June 18 by BritManToo

[topt]

56 minutes ago, BritManToo said:

Voluntary Nic payments from the old pension system years (before 2016) often make no increase to pensions paid out under the new pension system.

 

That's why you have to ask them.

Agreed. But he didn't say how long he has been drawing it or which scheme.

This is a reasonably clear article -

https://www.thisismoney.co.uk/money/pensions/article-10861215/Im-retired-pay-extra-NI-bigger-state-pension.html

[MartinL]

Drawing pension since 2019 under the new pension scheme.

 

Thanks for the article, topt. That's information I knew already. 

 

The main thrust of my question, both here and in my message to IPC, is - 'Does a FROZEN pension in payment increase with voluntary contributions?'

 

I have 42 years of NICs, many of those 'contracted out' so that my pension, back in '19 and with the max. number of years I could buy at that time, was 87% of the full pension. Obviously a smaller %age now.

Edited June 18 by MartinL

[topt]

2 hours ago, MartinL said:

'Does a FROZEN pension in payment increase with voluntary contributions?'

My guess (and is only a guess) is that if you paid all the outstanding years to make it 100% (however many years that is), your pension amount should be rebased to the 100% figure as of the date it was frozen. So you still wouldn't get any of the %age annual uplifts since then.