Large gap in my National Insurance record due to education?

[FreeLitres]

I've just completed my tax return and I noticed on my national insurance record that there is a 7 year gap when I did not contribute enough.

All these years were when I was in full time study (A levels and 2 degrees before my career started).

Is this right? Does everyone have a gap in their record if they didn't go straight into full time work at 16?

If so, what impact would this have on my pension? Is there anything I can do to fill the gap? Any advantage in doing this?

[200Plus Club]

Assuming you mean state pension You can normally buy those additional years within time limits at a fairly reasonable cost. Wife did same a few years ago to bump herself uptowards full state pension.
All the info abd cost per additional year is on your. Gov site along with your forecast.

[FreeLitres]

200Plus Club said:

Assuming you mean state pension You can normally buy those additional years within time limits at a fairly reasonable cost. Wife did same a few years ago to bump herself uptowards full state pension.
All the info abd cost per additional year is on your. Gov site along with your forecast.

On this contributions summary I'm looking at, it states "It’s too late to pay for this year. You can usually only pay for the last 6 years". The missed years were nearly 20 years ago!

I guess I have to accept a smaller state pension and try to make up for it with my work pension?

[Aunty Pasty]

The maximum number of years of NI contributions for full state pension is 35 years so if you think you will be working enough years before you retire then it doesn't really matter.

[WelshRich]

The max you can get is 35 years contributions I believe, so even missing 7 years you may still build up the full allowance depending upon what age you plan continue working until

Edit - Must type faster

[FreeLitres]

Those last few posts makes me feel better.

I had a sinking feeling I might have to work 7 years extra when my mates were retiring!

[CoolHands]

Sometimes it’s not worth or necessary. You’ll be working 40+ years so don’t panic

[RammyMP]

I checked mine a week or two ago, I’m 47 and have 30 years of contributions, I had summer jobs when I was a student so that must have been enough NI to cover the year?

Have a read of this if you’re bored: https://www.moneysavingexpert.com/savings/state-pe...


Martin Lewis says:
Buy 'extra' pension years

If you've got spare savings and can afford to be without the cash in the short term, it's also possible to replace some missing NI qualifying years. This could lead to a big increase in your basic state pension payout over your retirement.

If you're eligible, and you could benefit by boosting, buying extra years involves paying what are called 'voluntary class 3 NI contributions'.The rate is £15.85 (2022/23) per missing week of NI contributions – £824 for a full year.

The state pension system can be complicated and there are exceptions and anomalies when it comes to voluntary national insurance contributions. We've written a whole guide on it, to help you weigh up whether buying extra national insurance years might be a good idea for you.

[VR99]

My university years did not count towards my NI contributions and fairly sure this is standard procedure. Conversely there were years early in my career where I had employment gaps yet still received a full year so assume it all balances out by the end of ones career. I have 7 years remaining on my forecast and in my early 40's now so hoping should be achievable to hit them by will wait till closer to retirement to assess whether I have gaps and purchasing is worthwhile.

[anonymous-user]

^^^^^^

Not watched the full video but you have to call HMRC to get your payment reference number. Having that, you can use the same number year after year; I’ve been paying for 4 years now.

One subtlety that seems not to be documented on the yougov site though: When you pay there is no reference to the tax year. The funds will sit in a suspense account against your NI number but will not be credited to the year you want to pay, even if it is blindingly obvious which year you intend. You have to call again after 8 weeks and tell them which year you want to credit with the funds then you will see your record updated same day.

[FatboyKim]

Hang On said:

^^^^^^

Not watched the full video but you have to call HMRC to get your payment reference number. Having that, you can use the same number year after year; I’ve been paying for 4 years now.

One subtlety that seems not to be documented on the yougov site though: When you pay there is no reference to the tax year. The funds will sit in a suspense account against your NI number but will not be credited to the year you want to pay, even if it is blindingly obvious which year you intend. You have to call again after 8 weeks and tell them which year you want to credit with the funds then you will see your record updated same day.

Indeed, it will most likely get allocated to the oldest outstanding year. For example, if you had £180.00 outstanding from 2002/03 and £135.48 outstanding from the following 2003/04 year and make a payment of £135.48 (intending to top up 2003/04) using your reference number, your £135.48 payment will be deducted from the older £180.00 amount from 2002/03 thus leaving the odd silly amount of £44.52 outstanding in 2002/03 as well as the £135.48 you actually wanted to pay.

As you say, you'll need to call the employee NI helpline and get your payments allocated against the correct years -- easy enough to do but an inconvenience.

[Pieman68]

If 35 years is the max, why would this be the case?

Is the 19 years to contribute just saying how many years of working age I have left?

You have:

30 years of full contributions
19 years to contribute before 5 April 2041
2 years when you did not contribute enough (when I was at uni 1993-1995 so no issue with that)

[dingg]

35 years nic is the MINIMUM to achieve the new state pension

[Aunty Pasty]

19 years is just the number of years before you reach state retirement age. It's not the number of years still expected from you.

[anonymous-user]

Is there any benefit to be had for paying more than 35 years?

Like the OP, I have 7 years missing/short. Most of them years am approx £330 short.

However am 34 now and in full time employment. Workplace pension which is 3%+6% contribution from work.

Any benefits to having more than 35years?

[snuffy]

MuddyK said:

Is there any benefit to be had for paying more than 35 years?

Like the OP, I have 7 years missing/short. Most of them years am approx £330 short.

However am 34 now and in full time employment. Workplace pension which is 3%+6% contribution from work.

Any benefits to having more than 35years?

For you: None what so ever.

For the government: Yes. For each extra year you pay after 35 years, they give you absolutely nothing extra.

[Ouroboros]

My NI show from 16 up to now 42. Some years I paid 52 quid in a year in NI. So it shows 24 years full NI contributions.. 2 years I did an HND.

Mine start from 16 when I was at school but used to work in the summer.

Edited by Ouroboros on Friday 8th July 07:04

[anonymous-user]

Mine says I have to contribute another two years to get the full state pension , my current record is as below…

“You have:

42 years of full contributions
4 years to contribute before 5 April 2025
4 years when you did not contribute enough.

You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2021 = £175.65 a week

Forecast if you contribute another 2 years before 5 April 2025 = £185.15 a week”


So , it would appear that 35 years of contributions does not get you a full state pension.

Edited by anonymous-user on Friday 8th July 07:18

Edited by anonymous-user on Friday 8th July 07:19

[anonymous-user]

Jasey_ said:

Someone has to pay the pensions of the lazy and that is the rest of us.

You should only pay for missing years if you are worried about not hitting the minimum or want to retire early meaning you could miss the minimum.

So if you were planning to retire at the current state pension age, and say you hit your 35 years at the age of 62, can you refuse to pay NI for the last 5 years - claiming 'ive paid my dues'?

[snuffy]

MuddyK said:

Jasey_ said:

Someone has to pay the pensions of the lazy and that is the rest of us.

You should only pay for missing years if you are worried about not hitting the minimum or want to retire early meaning you could miss the minimum.

So if you were planning to retire at the current state pension age, and say you hit your 35 years at the age of 62, can you refuse to pay NI for the last 5 years - claiming 'ive paid my dues'?

No.

Funny that, isn't it ?