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TJL
Posted: 04 December 2022 19:58:31(UTC)
#16

Joined: 14/03/2011(UTC)
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They are very helpful - the only thing they cannot tell you is your life expectancy.
Have a pen and paper handy - if I remember right they have the information available at their fingertips to bombard you with options.
Then the maths and the decision is up to you!
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Joe Soap on 04/12/2022(UTC)
Stephen B.
Posted: 04 December 2022 21:33:21(UTC)
#17

Joined: 26/09/2012(UTC)
Posts: 795
I think that as long as you really are increasing the pension (i.e. you definitely won't hit the limit anyway) then it's a no brainer, the payback time is only a few years. It's also worth pointing out that if you're unemployed/retired and haven't yet hit the state retirement age the credits for a self-employed person are cheaper and the bar for being self-employed isn't that high - a few years ago they planned to equalise the rates but backed off in the face of opposition.
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D Bergman
Posted: 05 December 2022 16:17:26(UTC)
#3

Joined: 22/03/2018(UTC)
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SF100;249878 wrote:
Need not fear for those missing pension years.
The public purse will no doubt pick up the slack and cover it in the form of 'some other benefit'

See 'Pension Credit' for example


That is simply incorrect.

Pension Credit will not automatically "pick up the slack" as you put it; if you have a reduced SP but have other income (such as a private pension or investment income) you are not entitled to PC.
Buying back missing years can be very cost-effective.

I speak as someone who has worked for years with Pension Wise and Citizens Advice.
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6 users thanked D Bergman for this post.
Keith Cobby on 05/12/2022(UTC), Julianw on 01/01/2023(UTC), John Bran on 01/01/2023(UTC), Andrew59 on 05/01/2023(UTC), downatthirdman on 07/01/2023(UTC), Easyrider on 07/01/2023(UTC)
Thrugelmir
Posted: 05 December 2022 16:27:33(UTC)
#13

Joined: 01/06/2012(UTC)
Posts: 5,338
guantou;249895 wrote:
Steve U;249893 wrote:
guantou;249884 wrote:
Did a few calcs prior to retirement:
Paying up the missing years was of benefit from age 87 onwards.
Quite happy to draw my reduced state pension alongside my 2 index linked company pensions.

Can't remember which site but I compared my calcs with an online calculator which allowed all variables of missing year options to be viewed.



really ? I thought the rough numbers were £800 contribution for each additional years pension - so it's a 3/4 year payback


I am missing many years


Doesn't change the pay back period.
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Keith Cobby
Posted: 05 December 2022 16:46:13(UTC)
#18

Joined: 07/03/2012(UTC)
Posts: 5,064
Currently paying Class 3's to cover a 5 year gap. Encourage everyone you know to check their records and maximise state pension.
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Steve U
Posted: 05 December 2022 16:48:46(UTC)
#11

Joined: 30/08/2017(UTC)
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guantou;249895 wrote:
Steve U;249893 wrote:
guantou;249884 wrote:
Did a few calcs prior to retirement:
Paying up the missing years was of benefit from age 87 onwards.
Quite happy to draw my reduced state pension alongside my 2 index linked company pensions.

Can't remember which site but I compared my calcs with an online calculator which allowed all variables of missing year options to be viewed.



really ? I thought the rough numbers were £800 contribution for each additional years pension - so it's a 3/4 year payback


I am missing many years


Then I'm not sure you have calculated correctly.

I have a potential to add 3 years - the cost is roughly 3 x £800 = £2,400 - the pension increase would be £15 pw - so £750 pa. A 3 and a bit years payback.

My wife has a potential to add 6 years - the cost is roughly 6 x £800 = £4,800 - the pension increase would be £30 pw - so £1,500 pa. Also a 3 and a bit years payback.
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1 user thanked Steve U for this post.
John Bran on 01/01/2023(UTC)
guantou
Posted: 05 December 2022 17:07:37(UTC)
#12

Joined: 05/09/2009(UTC)
Posts: 1,039
Steve U;249978 wrote:
guantou;249895 wrote:
Steve U;249893 wrote:
guantou;249884 wrote:
Did a few calcs prior to retirement:
Paying up the missing years was of benefit from age 87 onwards.
Quite happy to draw my reduced state pension alongside my 2 index linked company pensions.

Can't remember which site but I compared my calcs with an online calculator which allowed all variables of missing year options to be viewed.



really ? I thought the rough numbers were £800 contribution for each additional years pension - so it's a 3/4 year payback


I am missing many years


Then I'm not sure you have calculated correctly.

I have a potential to add 3 years - the cost is roughly 3 x £800 = £2,400 - the pension increase would be £15 pw - so £750 pa. A 3 and a bit years payback.

My wife has a potential to add 6 years - the cost is roughly 6 x £800 = £4,800 - the pension increase would be £30 pw - so £1,500 pa. Also a 3 and a bit years payback.


I have been out of the UK since 1994, previous to that I have several part years missing
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TJL
Posted: 05 December 2022 19:25:58(UTC)
#19

Joined: 14/03/2011(UTC)
Posts: 1,630

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Just something to be aware of.
When I rang the Helpline, I am fairly sure the figures they quoted me were quite a bit in excess of the circa. £800 per year quoted on the HMRC website, and mentioned up-thread.
Which obviously has a bearing on the whole 'is it worth it' calculation.
So much so, I haven't done anything about it yet.
Apologies if I am mis-remembering and this turns out to be a red herring.
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Stephen B.
Posted: 06 December 2022 00:05:23(UTC)
#20

Joined: 26/09/2012(UTC)
Posts: 795
https://www.gov.uk/volun...nce-contributions/rates

"The rates for the 2022 to 2023 tax year are:

£3.15 a week for Class 2
£15.85 a week for Class 3"

15.85*52 = 824.20

3.15*52 = 163.80

Class 3 are the general voluntary NICs, class 2 are for self-employment which may or may not be voluntary depending on profits.
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The Spanish Inquisition
Posted: 03 January 2023 11:57:38(UTC)
#21

Joined: 02/04/2014(UTC)
Posts: 231
Hi all, just got off the phone to Future Pensions, my situation is that I am currently 5 y short for full state pension, being self employed for the last 15 years I have a 6 year gap when I didn't have to pay class 2 NICS. I have been informed that even though my gaps are whilst being self employed, any contributions for pre 2016 years "Are paid at the full current NI rate"
So instead of 5 X £163.80 I'd have to pay 5 X 824.20 so I was advised to carry on paying my class 2 as I have 7 years before retirement age.
I've cut right back on work lately so any future contributions are now voluntary....
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