Should I pay voluntary NI contributions?

[titanium]

I've lived abroad for quite a few years, recently returned to the UK, and at the age of 43 have only 9 years NI contributions.

I'm trying to work out if it's worth me paying voluntary contributions for the last 6 years.
To my understanding, I need 35 years to get a full pension, and I have 24 years left before retirement at 67. So if I contribute for the next 24 years + the 9 I already have, that will be 33 years. If I voluntarily pay 2 years, that will top me up to 35 and a full pension- correct?

But what about the other 4 years that I'm allowed to pay - will that increase the pension I get, or make no difference?
Ta.

 

[titanium]

And another question - there are 9 years on my form which are eligible for voluntary payment, at different rates. If I pay more, (i.e. choose a later year) does that increase my pension?

 

[Deleted member 226268]

Call me cynical but ......
In 24 years there will not be any state pension for the general lowly proletariat.

It will be sneakily and slowly phased out, so the government do not have the inconvenience
of dealing with all the paperwork and expense of administrating it all.

The system will be farmed out to private contractors, with greedy share-holders, privatised.
Just like what is happening to the NHS.

 

[UKSBD]

I've lived abroad for quite a few years, recently returned to the UK, and at the age of 43 have only 9 years NI contributions.

I'm trying to work out if it's worth me paying voluntary contributions for the last 6 years.
To my understanding, I need 35 years to get a full pension, and I have 24 years left before retirement at 67. So if I contribute for the next 24 years + the 9 I already have, that will be 33 years. If I voluntarily pay 2 years, that will top me up to 35 and a full pension- correct?

But what about the other 4 years that I'm allowed to pay - will that increase the pension I get, or make no difference?
Ta.

Once you have reached maximum (approx. £155), further contributions don't make any difference.
If you have a Gateway account you should be able to log in and see what amount you had on April 5 and also see a forecast - https://www.gov.uk/state-pension-statement

 

[SteveJG]

I wouldn't bother, whats the chances you'll live to that age, and no doubt the age will be increased anyway. Enjoy the money now while you can ☺ my old man worked 6 days a week all his life saving for when he retired, died at 54 never had chance to enjoy it

 

[Newchodge]

You need to make contributions for each year. the amount needed to make up each year's contribution will vary, but each year counts exactly the same. So if you need to pay previous years, pay the cheapest.

 

[titanium]

Yeah I can see a forecast, but there doesn't seem to be any tool for calculating what it's worth paying back. They sent me a letter saying I should think carefully before paying back, but finding it hard to find info to help me make that decision!
Dave Archer - I kind of think you are right, but it's a gamble isn't it, like any investment.
Steve - what's the chance I'll live past 67? pretty high I would hope!
Cyndy - thanks! Nugget of info there!

 

[UKSBD]

You would have to pay class 3 which is approx. £14 a week (2 years £1400)
check the rates for 2010 and 2011 and it will save you a little.

Do you really want to pay another 4 years on top of that?

Edit to add: if you were living and working abroad it may be class 2
check criteria here - https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

 

[titanium]

You would have to pay class 3 which is approx. £14 a week (2 years £1400)
check the rates for 2010 and 2011 and it will save you a little.

Do you really want to pay another 4 years on top of that?

Edit to add: if you were living and working abroad it may be class 2
check criteria here - https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

I might be confused here, but I understood that I could pay class 2 if living abroad, paying for the current year. Whereas I am talking about paying for past years. I'm eligible to pay back from 2006 apparently (still £689).
"Do I want to pay?" is the purpose of this thread, since the answer is "I don't know"! Yes, I want to pay, if £700 a year now will pay me back more than that in the future, and no, I don't want to if it won't. Also, it's not just me, but the other half too, so we are looking at a substantial whack.

 

[UKSBD]

"Do I want to pay?" is the purpose of this thread, since the answer is "I don't know"! Yes, I want to pay, if £700 a year now will pay me back more than that in the future, and no, I don't want to if it won't. Also, it's not just me, but the other half too, so we are looking at a substantial whack.

Paying for the 2 years will make a difference, paying the other 4 won't.
It gives you a bit of leeway though.

 

[UKSBD]

There is a calculation somewhere

you basically multiply the amount of years you have left by £4.45 then divide by 35 then add that figure to the figure you had on April 5th

Ideally It should come to £155

Edit to add: your figure will probably be £146

 

[titanium]

Thanks!

 

[UKSBD]

One thing to check carefully is see if any of the years would come under class 2
ie if you were working in the UK immediately before leaving.

I think you can only go back 6 years now (I could be wrong) so if you have been out the county longer than 7 years this wont apply and you will have to pay class 3

 

[Deleted member 59730]

Steve - what's the chance I'll live past 67? pretty high I would hope!

Wouldn't pension planning be easy if we knew when we were going to die?