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Pay NI gaps to get full UK state pension

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This just hit the news again, worth considering if you have gaps, it's not big money but looks worth it.

 

If you log in to your HMRC account (i use the app) it's much easier to see the NI contribution years paid, pension forecast, missing years.

 

https://www.birminghammail.co.uk/news/cost-of-living/martin-lewis-urges-state-pensioners-29363415

 

https://www.gov.uk/voluntary-national-insurance-contributions/deadlines

 

If i added another 4 years contributions to the max 35 years, about £3,200, over 10 years I'd receive an extra £10,400 ignoring inflation

Done the same.... 5  missing years.. Class 2 voluntary contributions cost me under 700 gbp now maxed out at 37 years.. but the difference it makes to my pension forecast when I finally retire makes it well well worth it... 

  • Author
31 minutes ago, Martin71 said:

Done the same.... 5  missing years.. Class 2 voluntary contributions cost me under 700 gbp now maxed out at 37 years.. but the difference it makes to my pension forecast when I finally retire makes it well well worth it... 

Why is yours 37 years? mine seems to be 35

1 minute ago, scubascuba3 said:

Why is yours 37 years? mine seems to be 35

 

I thought that when I read your post.... the only thing I can think of is that mine were Class 2 Voluntary contributions.. only about 11 or 12 quid a month...

  • Author
6 minutes ago, Martin71 said:

 

I thought that when I read your post.... the only thing I can think of is that mine were Class 2 Voluntary contributions.. only about 11 or 12 quid a month...

ah ok, what's your state pension forecast? if i added the 4 years mine would be £220 a week

16 minutes ago, Martin71 said:

 

I thought that when I read your post.... the only thing I can think of is that mine were Class 2 Voluntary contributions.. only about 11 or 12 quid a month...

Class 2 gets you the same benefits, just cheaper.

 

If you were contracted out of SERPS at some stage you may have been able to buy an extra 2 years to make up for some of it.

 

6 minutes ago, chickenslegs said:

Class 2 gets you the same benefits, just cheaper.

 

If you were contracted out of SERPS at some stage you may have been able to buy an extra 2 years to make up for some of it.

 

 

Good point.. I had forgotten about that....

I've been trying to do this for over a year now. There was a deadline of last August to make top-ups for years up to 2016 I think before they increased the amount by about a hundred quid. Having spoken to the pension department they told me what I needed to do, so I downloaded the form, filled it in adding the payments to make as suggested by them. I received a letter in December accusing me of having worked in certain years, which I haven't - not even been there, but I did cash-in some pension pots. I called them and explained - they apologised and said I should never have been sent that letter and my case would go to the front of the queue - seven months later I called to see what was happening - they can see my case but don't know why it is held up so I asked them to write to me - I'm waiting.......

8 minutes ago, NotEinstein said:

I've been trying to do this for over a year now. There was a deadline of last August to make top-ups for years up to 2016 I think before they increased the amount by about a hundred quid. Having spoken to the pension department they told me what I needed to do, so I downloaded the form, filled it in adding the payments to make as suggested by them. I received a letter in December accusing me of having worked in certain years, which I haven't - not even been there, but I did cash-in some pension pots. I called them and explained - they apologised and said I should never have been sent that letter and my case would go to the front of the queue - seven months later I called to see what was happening - they can see my case but don't know why it is held up so I asked them to write to me - I'm waiting.......

If you were working abroad during any of those "missing" years, you can pay Class 2 voluntary contributions - very much cheaper than Class 3.

The rates for the 2024 to 2025 tax year are: £3.45 a week for Class 2. £17.45 a week for Class 3.

2 minutes ago, chickenslegs said:

If you were working abroad during any of those "missing" years, you can pay Class 2 voluntary contributions - very much cheaper than Class 3.

The rates for the 2024 to 2025 tax year are: £3.45 a week for Class 2. £17.45 a week for Class 3.

I stopped working anywhere in 2002, so it's Class 3 for me, but the rate for before 2016 - 824pa? if I ever eventually get to pay that is.....

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it's a no brainer, made back payments and paid class 3, qualified for my full pension about 5 years ago, and am no where near pension age. it's the best investment anyone can make. not big money, sure, but not so little either, and index linked. you can;t lose. IMO anyone who doesn't keep NI payments up to date is mad.

  • Author

Did anyone who bought gap years have to call HMRC to agree? it says as I've stopped paying NI i.e. not working, i can't pay for the missing years online

1 hour ago, scubascuba3 said:

Did anyone who bought gap years have to call HMRC to agree? it says as I've stopped paying NI i.e. not working, i can't pay for the missing years online

Yes when I first started about 5 years ago. I had to fill in a paper form and send it off - CF83. Not sure if you can short circuit this now by talking to them direct.

 

Even though I have paid every year since I still could not use the new online method this year.

Edit - you are supposed to talk to them first anyway in order to make sure it will make a difference.

  • Author
51 minutes ago, topt said:

Yes when I first started about 5 years ago. I had to fill in a paper form and send it off - CF83. Not sure if you can short circuit this now by talking to them direct.

 

Even though I have paid every year since I still could not use the new online method this year.

Edit - you are supposed to talk to them first anyway in order to make sure it will make a difference.

Yeah kinda makes sense they want to check that it's the right thing to do

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