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Original poster

National Insurance gaps- worth paying to clear?

48 replies

stormsurfer · 08/02/2022 11:13

I have 3 incomplete/gap years in my National Insurance Record. It says they are £800 per year with gap to pay off. Is this something that is worth doing? It also says I need to make 9 more years NI contributions to get full pension and have 13 more years to go to retirement age. How do I work out what to do?

OP posts:

Dyrene · 08/02/2022 11:20

I’d you’re going to work the next 13 (or just 9) years, I don’t see that it makes any difference really.

ButterMeTimbers · 08/02/2022 11:22

I wouldn't do anything at all until closer to retirement date - by then you will know for sure if you worked those 9 years or not and how much value you might get for the xtra payments, if they are necessary .

If it makes you feel better, you could save the money you would use to pay it off - that way it's there if you need it towards the end. Or it can be a nice bonus you can spend if it's not needed.

ButterMeTimbers · 08/02/2022 11:23

p.s. do check what the 3 missing years are. I think sometimes time as a student might show up as missing years but they shouldn't - so it also may be a clerical error?

Original poster

stormsurfer · 08/02/2022 11:32

Thank you for your help. They are years when I was overseas so did not pay NI. They are also 10,11 and 12 years ago so I think the time when I can settle them will be running out. If I want to retire earlier than in 9 years time (I will be 63 then) should I pay at least a part of them?

OP posts:

RustyBear · 08/02/2022 11:46

I have just finished paying for 4 years missing because I retired early. Before I did, I contacted the government Pension Service to check whether it would benefit me to pay, they confirmed that it would. I only have to survive for 3 years after pension age to make the extra payments worthwhile.
First thing to remember is that you can usually only pay for missing years for up to 6 years afterwards, so you may miss your chance to do it if you wait. I have two years that are incomplete from when I was a student & was either working during the summer holidays or getting unemployment pay (this was years ago when students could get the dole during summer holidays) so had a few weeks of credits, not enough to count, but I wasn't able to top up these years - luckily I had enough without them.
You can find the contact details for the government Pension Service here www.gov.uk/contact-pension-service I found them very helpful

BonnyandPoppy · 08/02/2022 11:48

I paid my missing years after I came back from being abroad. I felt it was worth it though I was away so long I will never have a full state pension so I think it worked out an extra £20 a month for each year I paid off.

RustyBear · 08/02/2022 11:48

Just seen your last post - it looks like you might have missed the chance, but it would be worth checking with the Pension Service - it only says you 'usually' only have 6 years, so the fact that you were abroad might make a difference.

Dyrene · 08/02/2022 11:49

I’d check what effect it would have on your state pension closer to the time. I wouldn’t make up any missing years if the overall effect was a couple of pounds.

And do it in the context of your full pensions provision too.

(I’m not enormously hopeful about the state pension looking in all that good for anyone who has made decent provision for their own retirement in 13 years time - never mind the more than 25 years I’ve got to go til there’s any possibility of receiving one).

AnnaMagnani · 08/02/2022 11:50

Overseas years are cheap to pay off compared to UK years.

If you are going to work 13 years anyway there may be no point but are you going to go all the way to retirement age? Plus they are only going to get more expensive.

If you leave it to retirement age you may have missed your chance to pay them off, plus the cost to pay them off goes up. Effectively you have to make your decision sooner rather than later.

BonnyandPoppy · 08/02/2022 11:52

and yes you can only pay them back for a certain amount of time. It tells you the time you have to pay it on the statement I think. It was also a nightmare to pay it as for some reason they kept sending me the money back as they didn't know what it was for. Can't remember the exact details but I remember lots of calls and letters going back and forth.

Hazelnut5 · 08/02/2022 11:54

Under current rules it’s definitely worth buying back missing years. £800 buys you a missing year, which will increase your pension by £266 a year (1/35 of the full state pension) - so it pays for itself in just 3 years.

Though whether you buy back the years now, or wait until you’ve stopped working and buy those years back instead, no one can say. It depends whether the current rules change or not.

In most circumstances you only have 6 years to buy back any missing years.

ButterMeTimbers · 08/02/2022 12:54

Just saw your update...

If you already know you want to work less than 9 years and are still within the window to pay for the missing years then it would make sense to get it done now.

SmolCat · 08/02/2022 12:57

How do you find out if/how many missing years you have? Is there somewhere I need to log in to? And if so how do I get the log in details?

ButterMeTimbers · 08/02/2022 12:59

www.gov.uk/check-national-insurance-record

You may need to follow the link to create an account...

SmolCat · 08/02/2022 13:52

Thanks so much @ButterMeTimbers

Original poster

stormsurfer · 08/02/2022 20:54

Thank you everyone. I think it sounds like I should try to pay them off. Can't really imagine keeping going for another 9 years.

OP posts:

GetOffYou · 08/02/2022 22:21

Saw this thread earlier today and sorted out paying for my missing years. Spoke to a very helpful woman who confirmed that it would be worth my while to pay the 4 years I have missed (retired early from work)
I was advised to pay 18/19 and 19/20 before April this year because after April the cost of buying them would increase.
My other missing years are 20/21 and 21/22 which I intend to pay later this year.
So thanks for the advice all!

Original poster

stormsurfer · 09/02/2022 06:50

@GetOffYou you were very quick at fixing that! I'm glad my question helped you!

OP posts:

Soontobe60 · 09/02/2022 07:00

You only have 6 years to pay for missed / incomplete years. So you’ve missed the chance to pay them. Each incomplete year is work about £4 a week in pension. So if you pay £880 it will take over 4 years worth of pension payments to recoup the cost. Of course, if you live more than 4 years beyond your retirement, you’ll be quids in!
www.which.co.uk/money/pensions-and-retirement/state-pension/can-i-top-up-my-state-pension-an0q09p37nsj

Wafflefudge · 09/02/2022 07:32

Tip incase it's helpful for anyone but if you look after your grandchild then you can qualify to get NI credits off the parent. As a parent I get NI credits but I don't currently need them so I've been able to transfer them to my mum. So her pension years are added to with no cost.

Jmaho · 09/02/2022 07:49

@ButterMeTimbers

p.s. do check what the 3 missing years are. I think sometimes time as a student might show up as missing years but they shouldn't - so it also may be a clerical error?

I actually checked mine the other day and I have got gaps for 2 years when I was at university. I did think this was odd, is this not correct then?

ButterMeTimbers · 09/02/2022 08:57

Not specifically for university and it somewhat depends on your age but for some years between about the mid 1970s and 2010 (?) you got starter credits to encourage you to stay in higher ed.

I am definitely no expert, so if you turned 16 between those years then it is worth talking to the NI Office to make sure you are not missing credits you should have been given (I know someone who was and got 3 crucial years' of credits this way, thus completing her record for the full state pension).

Stravaig · 09/02/2022 09:56

It's best to call or check your account online for which years you can catch up on. While 'previous 6 years only' is the default, many more years are available for some people, for a fixed time. (I assume due to changing the retirement age and number qualifying years required). I can go back to 06/07 and have until April 2023 to do so. (I'm not going to manage in time).

fingersdoublecrossed · 09/02/2022 09:57

@ButterMeTimbers

p.s. do check what the 3 missing years are. I think sometimes time as a student might show up as missing years but they shouldn't - so it also may be a clerical error?

My student years are showing as incomplete - what can I do about it? It's more than 6 years ago.

WombatChocolate · 09/02/2022 18:29

You can’t do anything about missing or incomplete years that are more than 6 years ago.

The key thing to know as you approach retirement is how many years you will have acquired when you retire. Many midddle aged people will still reach 35 years by the time they stop work, even with gaps from when they were students or out of the workplace.

It’s not usually worth paying for extra years in middle age, because you might find you reach 35 years and have actually paid for years you didn’t need - a waste.

If you can see that you won’t get to 35 years for definite AND you have gaps within the last 6 years, it could be worth buying some now. After six years pass the gap, it’s too late.

And regarding value, it’s amazing value….£800 for an extra £5 per week for life…..you’d never get that rate of return off another pension. It does pay for itself within less than 4 years…so a very good use of money if you need the extra years. But if you don’t and will get to 35 it’s £800 down the drain.

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