mungo Posted June 13, 2018 Share Posted June 13, 2018 Bit of a boring topic but wondered if anyone had any experience with this?. I was considering making making up some years in my National Insurance contributions to ensure I receive the full state pension . I have 8 full years at the minute , but dont plan on working til Im 69. I'd rather stop at 60 , last on some savings/occupational pension then wait for the state pension to kick in. Its about 700 quid to make up a 'missing year'. Is it worth the gamble? , I may or may not reach 69 and then it would be money down the shitter. Any thoughts appreciated on this from the Pie and Bovril Oracles. Link to comment Share on other sites More sharing options...
Donathan Posted June 13, 2018 Share Posted June 13, 2018 You'd probably be better off making extra voluntary contributions to your occupational pension. Link to comment Share on other sites More sharing options...
chomp my root Posted June 13, 2018 Share Posted June 13, 2018 I'll be interested in this thread too, at the moment I'll get roughly 2/3rds of the state pension (aged 67 in my case), last time I checked I think I was getting about 420 quid a month instead of 640. I should be fine for cash but have hummed and hawed whether it would be worth it, I think I need another 9 years for the full whack. I did read that self employed contributions were only a couple quid a week I think but that has knock on ramifications too. Link to comment Share on other sites More sharing options...
Loki Posted June 13, 2018 Share Posted June 13, 2018 How old are you? If you aren't state pension age yet you will need 35 qualifying years to get the full state pension, and a minimum of 10 for the lowest level of state pension. If you are not going to have 35 years by the time you reach 60, it may be worth paying some years. As someone said before it would probably be better putting into a private pension. Link to comment Share on other sites More sharing options...
Cardinal Richelieu Posted June 13, 2018 Share Posted June 13, 2018 My late father always told me I should do this. I remember thinking at the time that knowing him, it would be a very sensible thing to do, but also a terrible topic of conversation to engage in down the pub. Link to comment Share on other sites More sharing options...
BallochSonsFan Posted June 13, 2018 Share Posted June 13, 2018 This was covered on Moneybox a couple of weeks ago. If I remember correctly then for every extra full year you have, you increase your annual state pension by something like £240. Your break even point for 1 year of extra contributions is 3 years of retirement. In year 4 of retirement you're in profit. Link to comment Share on other sites More sharing options...
chomp my root Posted June 13, 2018 Share Posted June 13, 2018 16 minutes ago, Loki said: How old are you? If you aren't state pension age yet you will need 35 qualifying years to get the full state pension, and a minimum of 10 for the lowest level of state pension. If you are not going to have 35 years by the time you reach 60, it may be worth paying some years. As someone said before it would probably be better putting into a private pension. I'm 50 and been 'retired' for close on 5 years. I do have an income and we'll be mortgage free on our place plus one rental before I'm 60. My missus also has a decent pension pot and loves her reasonably well paid job so will probably work well into her 60's. I 'should' have enough money myself without a state pension, I see it as a top up, that's why I've wondered if its worth paying up the extra 9 years now when I'm relatively skint what with paying the mortgage etc. Link to comment Share on other sites More sharing options...
mungo Posted June 13, 2018 Author Share Posted June 13, 2018 I'm in my late thirties , so I'd need another 27 years plus the 8 I already have to get the full whack. This would take me to 64/65 years of age. That's about 10 years longer than I'd like to work. Right now I think I will make it to 69, so erring towards paying a couple of the missing years that were spent in a hiatus. Also planning on the oc pen contributions. Had a look at my online account at gov.uk and seems I can pay even further bac than the 6 year cutoff. No idea how that works, going to give them a phone this week to find out a bit more. Link to comment Share on other sites More sharing options...
welshbairn Posted June 13, 2018 Share Posted June 13, 2018 Some guy came round where I was briefly working in the Eighties and sold us the idea of opting out of earnings related. Cashed in the few grand it was worth at a dodgy point a while later. Means I'll be on minimum pension. Bit of savings though and inheritance eventually, so I'll be ok if I keep drinking and smoking enough to restrict my affordable life term. Link to comment Share on other sites More sharing options...
Loki Posted June 13, 2018 Share Posted June 13, 2018 17 minutes ago, chomp my root said: I'm 50 and been 'retired' for close on 5 years. I do have an income and we'll be mortgage free on our place plus one rental before I'm 60. My missus also has a decent pension pot and loves her reasonably well paid job so will probably work well into her 60's. I 'should' have enough money myself without a state pension, I see it as a top up, that's why I've wondered if its worth paying up the extra 9 years now when I'm relatively skint what with paying the mortgage etc. You can check online using the gov.uk website, to see how many years you are missing, and then weigh up if the buying the extra years would be worth the investment. I am in my late thirties and have 18 years already so I should be fine by the age of 60. Link to comment Share on other sites More sharing options...
chomp my root Posted June 13, 2018 Share Posted June 13, 2018 6 minutes ago, Loki said: You can check online using the gov.uk website, to see how many years you are missing, and then weigh up if the buying the extra years would be worth the investment. I am in my late thirties and have 18 years already so I should be fine by the age of 60. Aye, did it a couple years back, that's how I got the 420 quid figure. Wasn't sure of the yearly contributions, so if its 700 quid a year as posted above then I'll definitely be leaving it at least until I've paid off the mortgage, that will give me close on the 9 missing years, will be down a year or two as the mortgage will be paid off at the latest when I'm 60 but as we're overpaying it will hopefully be sooner. Saying that, we took quite a whack of overpayments out a wee while back for ahem, home improvements. Link to comment Share on other sites More sharing options...
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