To remind you to check your pension contributions before April 2025.

[AlisonWhatIsTheMatter]

I’ve checked mine and even though I was advised to contract out of SERPS in the late 80s, (currently resting in Phoenix Life) I’m not missing any years of contributions ( I think) my forecast on GOV.UK states I cannot improve my forecast anymore.

I was reminded to check again last night after watching Martin Lewis.

Just a reminder to check your contributions before April 2025 otherwise you might not get another chance to ‘plug in’ any gaps.

I’ve attached my GOV.UK forecast so you can compare what yours states.

If only retirement age was still at 60! I’d have 5 years to go. 😩

Thank you for this. I did read something about the 35 years being if your contributions started from 2016, but it didn’t explain what happened if you had started paying pre 2016. It makes sense now that they couldn’t say more as it depends on individual circumstances. Thanks again.

The first thing you need to do is check your forecast. The 35 years only applies if you never paid any NI contributions before 2016. If you did pay any before then your individual number of years needed will be different from 35. It will tell you on your forecast how much you have as things stand and how many more years you need.

I can see all the years that I worked, including part time from when I was 16, so it’s not that for me. Thank you though.

@AlisonWhatIsTheMatter Why should we check before April 2025?? What happens then? Thanks

It does. So let's say it says 11 years, and I have 18 to go then it doesn't make sense to top up, right? But what I'm suggesting is, is it worth topping up in case the goalposts are changed and suddenly it's 20 years I need to get the full amount?

@Isthisexpected if you were self employed Class 2 NI is cheaper and may make it a sensible choice.

No one can predict what will happen to state pensions. It used to be 39 out of 44 years for women or 44 out of 49 years for men.

I’ve worked my whole adult life. I’m fully ‘paid up’ but I’ll be working til I drop at this rate. There’ll be nothing left for when I reach retirement age and really, it’s foolish to think otherwise. The system has been bled dry by people who don’t work and take everything but contribute nothing back. Plus the added bonus of our aging population - there just won’t be enough working to sustain the pensionable population. Sorry to be the bearer of bad news :(

The option to pay back to 2006 expires. From May 2025 it reverts back to the standard which is you can back pay only the previous 6 years.

That could happen and no one can guarantee it won’t. The problem is, it’s going to be a gamble. Do you top up those years in case the rules change and they’re needed to guarantee you a full pension. In that case you’d win the gamble.
But maybe you top up those years and the pension is fully or partially removed by the time you get there. Maybe by then it’ll be means tested. Maybe it’ll be a brand new type of benefit not related to age or NI contributions. In this case you’d lose the gamble.

If topping up only cost about £100 a year I’d consider it. But I only have 3 years missing from uni. That’s a cost of nearly 3k. That’s a LOT to throw away when firstly, I may not need to cover those extra years as I’m currently on track to get to my required years, and secondly, if they get rid of the state pension I will have just given that money over to them for absolutely nothing in the future.

I only work part time. Can you just pay the years with the smallest gaps?

If you log into your pension forecast it should show you which gaps are payable, starting with the smallest amount.
But I would strongly advise phoning the Future Pensions helpline before making any kind of payment.

Some people could potentially make payments that will be of no benefit whatsoever. Because it's a "voluntary contribution" even if you realised the next day you've made an error and it wouldn't actually count towards your pension you would not be entitled to a refund, because you've literally voluntarily paid.

For free pension advice, the following is the organisation recommended by Martin Lewis:-

https://www.moneyhelper.org.uk/en/contact-us/pensions-guidance

You can arrange to speak to an advisor if you have questions about your pension.

Thank you. I did this and I have one non-full year, which is correct. It says it is too late to pay for it because it was more than 6 years ago. I also noticed my contributions during maternity leave were much lower, which makes sense, too, although I'd never stopped to think about it.

I phoned HMRC last week about gaps and contributions, spent roughly 40 minutes on hold before someone answered but he was extremely helpful and it was a worthwhile phone call.

He calculated that if I paid the shortfall before April then I would need to live to 71 to break even on my contributions. Any state pension I receive after 71 is worth more than what I've paid in.
If I leave it past April I could lose the opportunity to have a full pension because my missing years would go back too far once the April deadline has passed.

Again, he strongly advised phoning the Future Pensions section, before deciding which gaps I should pay.
Their phone number is 0800 73 10 175

I believe Martin Lewis will be covering the topic on TV soon, so be prepared for the HMRC phone lines to get busier after that airs.

I have longer than op and I'm tired now! 🙁

Just checked mine and I retire same year as you, but be aware that it states we may get pushed back a year yet.

Yes.

Also if you claim child benefit all of those years are automatically counted.

Not sure that is odd -but I’d get the child benefit thing sorted to be sure of no mistakes in the future!

Martin Lewis has an article about this on money saving expert which is worth reading.
if you are likely to reach your 35 years (current legislation) because you will work 35 years it’s probably not worth it. Unless you have cheap partial years which might be worth it.
He very much suggests it is your current age that matters.
You can currently pay extra years going back to 2006 but after April you will revert to the previous system where you can pay any missing for the last six.

Nothing would surprise me!

That's very much an individual decision. You can pay class 3 NI if you don't work. Don't forget that many benefits would give you your credits as well. The only thing that is changing is the number if years that you can pay back. If for example you found yourself short on any future years you could back pay for the previous 6 years. Given all of the above, then no I wouldn't because if you do keep working and contributing you would end up paying more than you need to.

I suppose, but if you claim certain benefits e.g. ESA and Child Benefit, then you’ll get stamps towards your NI record too

Chances are most people who are in work, or are claiming benefits, and have worked or claimed since leaving education wont need to top up with voluntary contributions.

People who might have gaps would be those who have worked very part-time, people who have worked abroad, or those who have had spells where they're not working or caring for someone or claiming benefits.

A missing year is just over £820 if you feel you need to pay it, preferably before this April, but don't leave it until too near the deadline.

@rainbowunicorn
Thank you so much for all of your help on this thread.
Until your explanations here I couldn’t understand why my 39 qualifying years still left me 6 years short of a full pension. Now I understand that they were recalculated. It seems like a huge reduction in my case but I assume it’s because I was always contracted out.

Yes, that is correct. Whe you would have first started working and contributing there was state pension and then the additional second state pension. What you were contracted out of was the second state pension. The idea being that what uou contributed to your employers pension would be worth as much as or more than the second state pension. You would have paid less NI during the time you were opted out. When the new state pension came unto effect for anyone retiring after 2016 a recalculation was done at that point to give you the number of years you needed. The new state pension is paid at a higher rate than the old so more contribution years are needed to get it in full.