NI gaps - worth paying to plug?

[GeorgiePorgieOrgie]

I’ve recently been on mission to understand my finances better and have discovered I have three years of NI that are missing.

One of those years can’t be plugged as too much time has passed but the other two have got a deadline of 2023 to be paid, if I choose to. Each year is approx £750.

Is it worth paying this off? I’m in my mid 30s and think it sounds like a good idea as it ups the number of my contributing years but am afraid of chucking money at something that might not be worth much when it comes to getting a state pension.

Does anyone have any clue as to what the most sensible thing to do might be?

I think you need 35 years of contributions to get the full state pension so I think having a few missing years in your mid thirties is not a huge problem as you still have plenty of time to make sure you get your 35 years of contributions.

I am in a similar position, but I am almost 60 and still working.
I need to continue working until state pension age but currently I can see I am six years short and have the option to buy a few back until 2025 I think.
All will be well if I can manage to work to 67, but I am pondering whether to buy some back just incase. I wish I had a crystal ball.

If I could afford it I probably would. You don't know that you will be able to work all of the available years ahead to compensate.

Meant to add £750 is a lot, I imagine it depends how many years you have accrued already? How long do you plan to keep working, will you ever become a sahm? Currently you have plenty of time to catch up and also I imagine thinking to the future the state pension age might rise.

@crimsonlake

I am in a similar position, but I am almost 60 and still working. I need to continue working until state pension age but currently I can see I am six years short and have the option to buy a few back until 2025 I think. All will be well if I can manage to work to 67, but I am pondering whether to buy some back just incase. I wish I had a crystal ball.

Similar to me. I'm two full years and two part years short. It's from so long ago that I can't repay - and I certainly couldn't afford it at the time. My pension forecast says my pension will be reduced by £769 a year as a result. I think if I was younger and could afford it, I would make up the years.

I plugged my 2 years onky to have now started working again and wouldn't have needed to . If you are in your 30s there is still a strong possibility you will get to 35 years. The 2 years I paid were unnecessary now I have started working again.

Why not get in touch with pensionwise? They give free independent advice. You need to have your NI number and current pension info to hand. I need to contact them myself, so I am glad this thread has reminded me.
I am old enough to have 40 years of contributions, so technically overpaid.
My gut feeling is that buying back a couple of years is worthwhile, but It is always worth asking the experts.

I had two missed yrs but have paid it since 17 so didn't bother to plug the gap as I won't be retiring in my 50s!

@Endofthelinefinally

Why not get in touch with pensionwise? They give free independent advice. You need to have your NI number and current pension info to hand. I need to contact them myself, so I am glad this thread has reminded me. I am old enough to have 40 years of contributions, so technically overpaid. My gut feeling is that buying back a couple of years is worthwhile, but It is always worth asking the experts.

Only if you are not going to work for 35 years.

There is a free service on the gov.co.uk website that tells you which years to pay etc of you need to to maximise your state pension so do not pay random years without checking with them.

Thank you for all the advice! It took awhile of being on hold but I eventually got through to the Future Pension Centre helpline which is listed on the government pension website and they were really helpful.

She said as I already have 15 years of contributions and only have 18 more years to go to get to the 35 years of contributions needed. it’s unlikely there’ll be a shortfall as 18 years takes me to early 50s and it’s most probable that I’ll be working then, barring any unexpected circumstances.

Thanks again for all your help, it gave me the prodding I needed!

Pensionwise is the government backed free impartial advisory service.

This is the page I found the helpline on www.tax.service.gov.uk/check-your-state-pension/account/nirecord/voluntarycontribs

But I can see (which I didn't before!) that it also lists Pension Wise as a free impartial service too, just further below.

For those considering the cost; for a standard rate tax payer, the additional weekly pension will cover a years cost in around 3.5 years. If you think you will live longer than that, then it makes sense.

I would encourage anyone wanting to check their NI contribution record for full pension to check the https://www.gov.uk/browse/working/state-pension

There are loads of complications, including when you were born, any years looking after children and claiming child benefit and loads of other things.

I checked there because my record says I only need 30 years contributions and the money wise site mentioned 35.

To sum up, get an official statement on how many years you need and then your likelihood of working the missing. Umber of years. If you are working longer than the number of years you need, you will pay NI for no additional benefit.

Good by luck working it out.