Missed NI contributions and the new 30 year rule

[Gordon Brown]

I have missed the last 3 or 4 years of NI contributions due to the small company share dividends thing.

I now have the annual letter saying that I was £362 short last year.

I notice that you now only have to contribute for 30 years to get the full state pension. As I am at 27 years of full contributions, is it correct, that should I pay the £1200 backdated missed NI's for the past 3 years I would get the full 30 year state pension and not have to pay anything again?

Is that a good deal or is the money best put in a savings account because there will be no stste pension at all by then??

Mrs Brown has 5 to make up to hit the 30 (so about £1800).

Can you stop paying at 30 years or does the PAYE NI take it anyway on the swings and roundabouts principle of British taxation?

Is a state pension worth having anyway?

[Premature]

I take it by the "small company share dividends things" that you are a company director who takes dividends rather than a salary, or do you take a small salary as well? If you take a salary of just over £5k a year, you will normally pay enough NI to make the year a qualifying year for pension purposes, and retains your "entitlement" to things like Job Seekers Allowance, I think.

Making the extra payment would only remotely make sense if you were coming up for retirement age, and you weren't going to pay NI for the rest of your normal working life. Paying the voluntary contributions won't stop you being liable for NI later on if you're earning over the limit.

No idea what the pensions are going to be like in a few years time, but it's not likely to be much. As already mentioned, getting the 30 years in doesn't stop you having to pay NI through the payroll if you're earning enough. Probably doesn't make sense making the payments at this time though.