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Original poster

Should I back-pay NI contributions?

45 replies

Cameliah · 26/03/2022 20:42

I studied for a MSc then I went back as a mature student and did a PhD. So I was a full time student for over a decade in total and didn’t pay NI contributions during those years. I have 25 years left until retirement age and I need another 19 years contributions to get full state pension. I’m currently a SAHM, I hope this will change when my youngest starts school.

If you were me, would you start back-paying NI for missed years at this point? I have 5 years (while I was studying for my PhD) which I can back-pay if I want to. I don’t have a private pension and I’m not likely to be able to afford to pay into one, so I really need my full state pension.

OP posts:
thesandwich · 26/03/2022 20:45

Why not if you can afford to?

BookkeeperBobby · 26/03/2022 20:47

Were you getting child benefit for any of those years? I think you can apply to have them credited if so. If not then yes I probably would if I could afford it. Five years is quite a lot.

Original poster
Cameliah · 26/03/2022 20:58

No I wasn’t getting child benefit for any of those years. I was a full time student. I need NI contributions for 19 of the next 25 years. So technically I don’t need to back-pay, in fact I can afford to lose 6 more years and still get full pension. I’m just getting a bit nervous - needing 19 out of 25 feels like I’m cutting it a bit fine.

OP posts:
Original poster
Cameliah · 26/03/2022 21:03

Why not if you can afford to?

I can’t really afford to. It would be a stretch and we’d be doing without other things in order to back-pay the NI. I’m just nervous about not getting my full state pension because I know I won’t have any private pension.

OP posts:
Pythonesque · 26/03/2022 21:14

Assuming you're receiving child benefit now, remember you'll get credited until your youngest child turns 12. Which from the sounds of things covers at least anothr 8 or 9 years or more. Does achieving a further 10 years after that point feel more achievable?

Original poster
Cameliah · 26/03/2022 21:25

Yes I will get 8 more years NI from child benefit regardless. So that means I need to pay full NI for 11 years out of the subsequent 17. It still feels like I’m cutting it fine though. What if I can’t pay for some reason, for example I don’t get enough work some years or can’t get a job?

OP posts:
BookkeeperBobby · 26/03/2022 21:28

Ah ok if it's going to be a struggle that changes things. As well as the CB a pp mentions don't forget that it counts as a qualifying year if you're on the dole or on the sick. So the only way you wouldn't have a qualifying year is if you decided not to work and didn't claim benefits. You could choose to make voluntary contributions if that happens.

Original poster
Cameliah · 26/03/2022 21:53

So the only way you wouldn't have a qualifying year is if you decided not to work and didn't claim benefits.

I have briefly claimed benefits in the past and I’d be very reluctant to ever claim again given the level of harassment and intrusion from the DWP and the constant pressure to apply for jobs I’m overqualified for. One of my main worries is that I won’t get a job and I won’t be able to claim benefits either because I can’t cope with the constant harassment.

OP posts:
Callisto1 · 26/03/2022 23:00

In your case I probably wouldn't buy back the 5 extra years, because you actually have a pretty good buffer. If you struggle to find a job in the future you can always buy extra NI years closer to your retirement age when you have a clearer picture of how many more years you need for a full pension.

RedHelenB · 26/03/2022 23:47

Why not just do one year or two, whatever you can afford?

Cocomarine · 27/03/2022 00:12

You can only make voluntary NI contributions for the last 6 tax years. Given we’re almost into a new one, and you’re talking about 5 years of your PhD, and didn’t have a child then but do now… are you not on the verge of losing the 6th year?
In which case, I’d get that one paid for, then make the decision year by year.
I’d say do it though!

As for credit when on benefits… it’s surely worth dealing with the system for such a long term benefit?

Cocomarine · 27/03/2022 00:13

Lucky you if you can afford not to claim benefits!

TheTeenageYears · 27/03/2022 02:03

There is no point in back paying if you can't really afford to. You don't get a discount later if you end up paying more into the system.

Oddbutnotodd · 27/03/2022 02:17

Don’t pay any extra now. You can pay multiple years in one go if you need to later on.

Tippexy · 27/03/2022 02:22

You’d be much better off paying the money into a private pension.

If you’re qualified for well paying jobs then why wait until your youngest is at school before you go back to work? That sounds like a luxury you can ill afford right now.

Bunnycat101 · 27/03/2022 04:42

I wouldn’t pay it now. The actual level of earnings to get a qualifying year is really low though so the chances of you not being able to earn £180 a week if you’re highly qualified will be slim. If you really can’t do that then benefits for a few years would be worth the admin hassle. I’m guessing the 19 years would take you to around 62 so you wouldn’t have to be working right up until retirement age.

If this is worrying you, I agree with another poster that you potentially need to look at whether continuing to be a sahm is financially feasible. It is a luxury that many people don’t have and you really should be trying to build a personal pension pot if you’ve got 25 odd years before retirement

Original poster
Cameliah · 27/03/2022 09:28

If you’re qualified for well paying jobs then why wait until your youngest is at school before you go back to work?
I’m not qualified for well paying jobs. My qualifications are art and history related. I wanted to be a university lecturer but there are basically no jobs. So my other alternatives are min wage jobs such as call centre or shop assistant etc. If I could get a well paying job I’d have gone back to work already.

Lucky you if you can afford not to claim benefits!
We literally lived on beans and had no heating for a year. It was very unpleasant but easier than dealing with the harassment from DWP. I was suffering from depression because finishing my PhD was so hard, I could barely even cope with going out of the house never mind dealing with hassle from the DWP. I thought it would be worth it because I was going to be a university lecturer - what a fool I was.

OP posts:
Original poster
Cameliah · 27/03/2022 09:33

you really should be trying to build a personal pension pot if you’ve got 25 odd years before retirement
That isn’t going to be feasible. The min wage jobs available to me don’t pay enough for that.

are you not on the verge of losing the 6th year?
Yes. That’s a year in which I paid £0 so I’m not as worried about losing it. Some of the other years I paid some NI but not enough to make a full year, so those are the first years I’d top up.

OP posts:
Bunnycat101 · 27/03/2022 09:54

But if you’ve got a phd grad schemes would be open to you. You will have lots of transferable skills if you were able to get a phd in your subject. It doesn’t have to be minimum wage or nothing. Civil service or local gov would be an option. Or presumably teaching if you were interested in lecturing.

Original poster
Cameliah · 27/03/2022 10:35

It’s a tricky one. I’ve seen how awful teaching is - my friend is a school teacher, burned out and unhappy from the excessive workload and desperate to get out. Grad schemes are for young graduates not mums who need flexibility. I’ve applied for various non graduate jobs and been told I’m overqualified. I had five years between MSc and PhD, but only min wage jobs would hire me. So I’m not holding out much hope now that I’m ten years older and even more overqualified plus I’ve been out of the workforce for a few years. I’m expecting a min wage job with no money left over for a private pension and I’m focusing on qualifying for my state pension.

OP posts:
Bunnycat101 · 27/03/2022 10:42

Honestly don’t let the age thing put you off applying for grad schemes- especially in the public sector employers. There would be lots of options for you to think about if you can get your confidence. You’ll have amazing critical thinking/analytical skills. Part of it will be about getting the first foot in the door.

Hercisback · 27/03/2022 10:47

I wouldn't bother.

When you get a min wage job it should come with a pension.

jungledoc · 27/03/2022 10:58

Probably not, I did for 2 of my uni years. That was a waste since I will not be retiring in my 40s! 🙄

Dyrne · 27/03/2022 12:03

I think you need to focus on seeking treatment for your depression and learning coping mechanisms; since you seem stuck in a “doom spiral”.

There are plenty of options out there between “University lecturer” and “Minimum wage”; but you seem to think those are the only two options.

Once your mental health is better you’ll be in the right mindset to find something.

Some options are:

Civil Service
Local Government
NHS
Schools

All of those would pay over minimum wage plus have decent pension schemes. Might take a little while but what have you got to lose?

Many big companies now have specific schemes aimed at getting women back into work after being SAHMs, so worth looking at those as well.

Callisto1 · 27/03/2022 12:44

How much would you need to top up on the cheaper years?