Should You Top Up Your NI Contributions For A Better State Pension?

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The Retirement Café with Justin King

2 жыл бұрын

The newspapers have recently reported that you can boost your state pension income by up to £55,000 by topping up your national insurance contributions, but is this true?
The full rate of the new state pension is £185.15 per week, but you may get less than the full amount for various reasons.
You typically need 35 years of qualifying national insurance contributions to secure the full state pension. I explore the 5 key factors you need to consider when deciding if you should plug any gaps in your National Insurance record to maximise your state pension.
Get a State Pension forecast: www.gov.uk/check-state-pension
Call the Future Pension Centre: 0800 731 0175
Interactive Tool: A quick check of whether it’s worth paying voluntary NICs (FOR GUIDANCE ONLY): www.lcp.uk.com/statepensionbo...
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Пікірлер: 42

@TheRetirementCafe 2 жыл бұрын

Is it worth topping up your National Insurance contributions to get more State Pension?

@MaryOlson7 7 ай бұрын

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

@michaelbird3887 Жыл бұрын

My experience of the State Pension is not to throw a cent into it that you do not have to. Buy gold, buy a flat, buy a private pension plan. Buy anything you can save and that appreciates. I tried AVC's and was caught by the removal of the additional benefit for a wife and by the reduction of the contributions from 44 years (applied to me) and the "new" pension of 30 years contributions. The real problem is that whatever applies when you pay in may have been altered a dozen times by the time you retire. Who remembers the Graduated State Pension? The money you pay in is NOT invested on your behalf and you will be dependent on whatever system is in place when you retire and whether the workers at that time can afford it and are willing to pay it. NEVER GIVE A CENT TO THE STATE THAT YOU NEED NOT. Stash the money anywhere you can find where it remains your property. This is RULE NO. 1 and the ONLY RULE! Look after Number 1 anyway you can but NEVER EVER rely on the state.

@neillmorris1469 Жыл бұрын

Buy a flat? Property prices can fall.

@magnus9701 Жыл бұрын

I bot a flat in 1987 £17,000 now worth £300,000 if I sell got got pay CGT 😨

@magnus9701 Жыл бұрын

need a good accountant if you know any

@paultrewin5871 2 ай бұрын

I was offered the chance to fill in 5 missed years a couple of years before I was due my state pension. The cost was around £4,ooo, but the benefit was £1000 per year more pension. So, the gamble was would I live to collect 4 years of state pension? 3 years and counting! The 4 grand I paid was not really missed, and I'm benefiting now. It's not quite as simple as that though. Pension increases are always a %age of your current pension. As I have a higher pension, so the pension increases are greater too. As usual it pays to see the longer term view.

@johnstacey8250 3 ай бұрын

Thanks for that , very helpful , god knows how I've managed it but I have 40 qualifying years. Been unemployed half my life must be contributions from JSA.

@amc6508 Жыл бұрын

Just topped up 10 years in arrears! Thanks for your valuable input!

@TheRetirementCafe Жыл бұрын

Fantastic!

@minimad8793 Жыл бұрын

Thanks for the info. Got directed from meaningful academy to your site.

@TheRetirementCafe Жыл бұрын

Welcome!

@kaxar6954 10 ай бұрын

What if I lived & worked overseas and have no NI record prior to 2012. I only have 13 years of a NI record in the UK. Can I pay for additional years where I have no NI record so I get the full state pension in the UK? I have no intention to keep working until the state pension age. I would prefer to make up for missing years. Hopefully, my query is clear.

@mickp222 7 ай бұрын

Remember it is Class 2 NI for the pension

@Pisky_84 8 күн бұрын

Hello, I worked in the UK for 8 years before relocating abroad. I am wondering if it is possible for me to make voluntary national insurance contributions in order to qualify for a UK pension in the future.

@eleyanalake1069 Жыл бұрын

It is only worth it, if you fully own a property! I pay rent for my flat. I have over paid my NI contributions!!! So I will be means tested, for housing benefit and council tax, when I retire!!! Apparently, I would have been better off, if I had under paid! So, it depends on people's circumstances!!!!!

@FrankMike2012 Жыл бұрын

Very interesting video, thanks. I retired early from the UK Civil Service in 2011 with 31 years NI contributions so did not think I needed to voluntarily add more (under the old pension system). As I had been contracted out, post 2016 I woke up to the need to add more years (now needing a total of 35 years). I have bought back from 2016/17 to present being told that buying pre 2016 top ups would be no good as my 'starting rate' for the new pension has already been calculated based on contributions up to 2016. I am about £5 short of the maximum weekly amount and cannot get anymore as I'm due to claim my pension this August. Is that correct?

@TheRetirementCafe Жыл бұрын

It sounds likely Michael, the Future Pensions Agency should give you the right advice. You may be limited because of your contracted-out period.

@pablobrad100 Жыл бұрын

Same here Michael. Civil servant that retired early in 2011, having accumulated 35 full years of NIC’s yet still have NI gaps!?

@xxsid1979xx Жыл бұрын

Thanks, very helpful. The trouble is, the Future Pension Scheme number is so innundated with calls that they don't even put you in the queue to hold anymore - they just terminate your call after the options. I know it's not a phone issue because I've tried from several. I'm quite anxious as I have a number of gaps to fill and no way of contacting the right people. Any advice? Cheers.

@TheRetirementCafe Жыл бұрын

Sorry I know it's a problem for many. You can post in a BR19 form and request the info in writing.

@lesleysidhoum1779 Жыл бұрын

I have also spent frustrating hours trying to speak to someone .Wrong telephone number on official letters that don 't actually ..exist and a multitude of other number eventually cut you off.A disgraceful service.

@sirbarringtonwomblembe4098 Жыл бұрын

It's an 0800 number, so free. It's frustrating, I know; I tried many times last week, but got through eventually. They were very helpful & even put me through to HMRC to arrange clearing 2 years NICs to increase my Pension to very near the max. I paid it the next day, & my projected amount for 22/23 on the Gateway site was increased appropriately after only 3 days! It will have increased by 10.1% when I receive my first payment in May.

@maxelbrig1315 Жыл бұрын

Awesome content. I have finally gained access to my pension account and can now review its details. I wanted to seek your advice regarding whether I should pay for all the shortfalls or just a few specific years that I have missed. I have attempted to contact the future pension center for guidance, but unfortunately, it has been difficult to reach them and obtain any advice. Therefore, I am reaching out to you in search of expert advice. So far I've got 4 years of full contributions, 11 years I did not contribute enough, so I've got 28 years to contribute before 5 April 2051 Should I make up the payment shortfalls in full or are there other considerations to take into account? I greatly appreciate any guidance you can provide on this matter. Thank you for your assistance.

@TheRetirementCafe Жыл бұрын

Sad to say, you need to talk to the Future Penaions agency. Try and call as soon as you can after 8 am.

@gw3341 Жыл бұрын

Expats can pay NIC2 to gain extra qualifying years towards their state pension? If so, that would have a payback of just over 6 months after retirement? Investment no brainer?

@computername 7 ай бұрын

It is interesting that you mention that. I came to find some answers for this, as I'm planning to move abroad. In the country I'm moving to, I'd have to pay ~160k € to gain the same pension entitlement, as 20 years of UK NI contribution would provide. In the foreign country that makes sense, assuming 20 years of retirement, I would recieve as much pay out as I paid in. However, with the UK state pension, of I keep paying those voluntary NI contributions, I would,ve only paid in a tiny amount - yet this will bump the entitlement up to the full pension. How does this work - how can you get something for nothing? Have I missed something?

@al1961 7 ай бұрын

Hello, I'm an expat and have lived abroad since 2003. I have only 4 years of Ni contibutions. I went onto Gov gateway and it looks like I am class 3 contributor and can pay all the way back to 2006. I just wonder, is this the best option for someone in my position and is there anyway for me to be class 2? I have no pension scheme to fall back on.

@TheRetirementCafe 7 ай бұрын

Give the Future Penaions agency +44 (0)191 218 2051 and they should be able to guide you.

@llamudos9809 Ай бұрын

If i have 33 years by the time i plan to retire. Can i pay an additional 2 years when i plan to retire at 56. To claim full state pension?

@TheRetirementCafe Ай бұрын

Yes, though you will get your State pension at your State pension age. Rules can also change!

@_mklein 3 ай бұрын

Put that money into stocks instead and will make muck more at the end!

@markhosbrough9180 4 ай бұрын

I don't think it would be worth me topping up my ni to get a full state pension reason being I am nine years short of qualifying for a full state pension due to the opt out thing they did in the 80s. and the other reason here in America because I won't have worked over thirty years before claiming pension here I will fall foul of the windfall tax where the money I get from state pension in the uk will get deducted from what I would get from here in the US

@maureenmaguire8476 18 күн бұрын

Is there an email address I could contact please, it’s impossible getting through on the phone.

@williammills1228 Жыл бұрын

I ended up screaming you evil sadistic man. I want to top up my pension by buying class 2 gap years yet I cannot get an reference number from HMRC. It is impossible to make the payment

@mrkcwan Жыл бұрын

Is that because you were put through the wrong department? Is it sorted now?

@mange2 Жыл бұрын

Ive paid 36 years of NI contributions. Does this mean that if I paid no more NI, then I will still receive full state pension?

@TheRetirementCafe Жыл бұрын

That should be the case. Get a forecast and check. www.gov.uk/check-state-pension

@JB-xd9dr Жыл бұрын

No. Full contribution years do NOT relate to qualifying years. Only DWP can tell you the details of the actual no of qualifying years. The NI record is VERY misleading.