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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:

CraftyGin · 09/02/2022 18:30

I have gaps for the four years we lived in the US. My financial advisor advises buying the extra stamps.

Original poster

stormsurfer · 09/02/2022 19:00

@WombatChocolate I think the 6 years must be a little flexible in some cases as mine are more than 6 years ago, but I do have a value for paying them off if I do them before April 22. It does say that amount could change after April.

OP posts:

Longdistance · 09/02/2022 19:04

I have a year missing of NI. I don’t know why was it wasn’t a year I was off work. I was working FT as was in that job for 15 years 🤔

Thoosa · 09/02/2022 19:06

@stormsurfer

If you had more years of work ahead of you, I wouldn’t bother. However you don’t know what your health might do 8 or 10 years from now, so if you can afford it, pay for those years.

NoWordForFluffy · 09/02/2022 19:20

[quote stormsurfer]@WombatChocolate I think the 6 years must be a little flexible in some cases as mine are more than 6 years ago, but I do have a value for paying them off if I do them before April 22. It does say that amount could change after April.[/quote]
I just checked my record, and it says I can still pay to top up 2006-2007, by no later than April 2023.

However, I'm 45 and will have 27 full years paid by the end of this tax year, so don't think it's necessary.

Gonegrey31 · 09/02/2022 19:30

Lots of helpful information here, thanks to those who have given useful links

Original poster

stormsurfer · 09/02/2022 19:58

Yes, thank you all for helping me. I feel like for me it will be worth it to pay as then I will not have to work more than another 6 years which will make me feel less pressured to keep going if I am not enjoying work so much by then.

OP posts:

BonnyandPoppy · 09/02/2022 21:50

So can you carry on paying it in if you stop working? How much is it then each year? As I Said I was abroad for over 20 years so will never manage to get the 35 years. I’m at 18 years now but don’t really fancy working past 60 ( another 5 years).

Hazelnut5 · 09/02/2022 22:05

@BonnyandPoppy yes absolutely, and as Wombat says it’s amazing value. More about it here: www.moneyhelper.org.uk/en/pensions-and-retirement/state-pension/voluntary-national-insurance-contributions-and-the-state-pension#

Original poster

stormsurfer · 09/02/2022 22:10

@BonnyandPoppy if you look up your record, it will say how much you need to pay for each year. I think they will all say it will change after April 22. I worry that if I wait to stop working then try to pay, it will be far beyond the 6 years and they might say you can't pay then or that the amount has increased significantly. My gut feeling is I should pay what I can to reduce it now while the offer and the fixed cost is there. But of course if I then work for more years than I need to to get the pension paid off, I would not have had to pay these 3 years now. It's a gamble. But I think I'd rather have the peace of mind that I will be financially prepared to finish early and overpay if I feel up to keeping going!

OP posts:

beautifullymad · 09/02/2022 22:10

@Wafflefudge

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.

I didn't know this. It's really helpful.

Original poster

stormsurfer · 09/02/2022 22:14

@BonnyandPoppy you could keep paying as many years as your statement has quotes for. And as I said, mine are much further back than 6 years. It doesn't look as though there is a limit of how many you can pay, just that there is a worry for how long they will keep allowing it.

OP posts:

Original poster

stormsurfer · 09/02/2022 22:15

Thank you @Hazelnut5 @WombatChocolate all of this is so helpful. I'm really glad I asked the question!

OP posts:

LizzieMacQueen · 09/02/2022 22:21

My dilemma as on a relatively low wage c £10k, are they raising the point you pay NI in which case I'll end up with some years ahead where I'll have incomplete years?

yogafairy · 09/02/2022 22:22

I have a question. A couple of my years are full year but are saying 83 weeks? The rest are full year at 52 weeks.

Can anyone help me to understand why?

LizzieMacQueen · 09/02/2022 22:27

@LizzieMacQueen

My dilemma as on a relatively low wage c £10k, are they raising the point you pay NI in which case I'll end up with some years ahead where I'll have incomplete years?

Answering my own question. It's £184 a week you need to earn so I think I'm ok.

BonnyandPoppy · 09/02/2022 22:30

@stormsurfer I did that when we returned to this country and paid all the years they allowed me to which was 6. My forecast now won’t allow me to pay anymore. What I didn’t know though is that if I decide to stop working at say 60 then I can pay in voluntarily to get a few more years added. I won’t ever reach the maximum but I did also work while abroad and will get a German pension too ( which is a lot more than the uk one!!)

Muchtoomuchtodo · 09/02/2022 22:33

Should I have paid when I was a full time student doing my degree?

I have 3 years that are not full - they are when I was doing my degree and I worked a small amount during the summer holidays. It was back in the mid 90s so too late to top up and I now have to pay 21 years of contributions in the next 20 years.

Original poster

stormsurfer · 09/02/2022 23:15

@BonnyandPoppy I see what you mean now. Sounds like it would be good to keep paying after you stop working as then you'll get closer to the max?

OP posts:

Thoosa · 10/02/2022 08:31

@yogafairy

I have a question. A couple of my years are full year but are saying 83 weeks? The rest are full year at 52 weeks.

Can anyone help me to understand why?

I have that in some years. It seems to coincide with times I was getting child benefit, Carer’s allowance or maybe tax credits, but I was stop-start freelance during those years. Could it be some duplication of credits like that?

catwithflowers · 10/02/2022 08:39

I contacted the tax office about the gaps in my record (also from when I was living abroad 11 years ago) and was told that I had missed the time when I could make up payments. It still had to be within the 6 years ☹️. I'm making voluntary payments now and will do so for the next 11 years and then will qualify for full state pension.

yogafairy · 10/02/2022 09:23

Thank you @Thoosa. I was a carer for my dad and working for a while many years ago so it's probably that.

RustyBear · 10/02/2022 10:30

The amount you pay does go up the longer you leave it- I've been paying for the four years since I retired early, the first year was only a part-year, but for the three full years I've paid for as they became due, the first cost £761.80, the second £780 and the last one £795.60, so I'd expect the next one to be around £815-£820, though luckily I won't need to pay that one, as I'm now on the maximum, and will get my pension in August.

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