Should I buy extra years of state pension?

[Skeptisk]

We have been out of the country for most of the past 25 years so don’t have close to full NI contributions. I’ve heard that until 5 April there is an opportunity to buy years at £824 a year, which gives 1/35th of a full pension. It seems the pay back is only 3 years of pension (and as we are not that far off we would hope to get it - I’m not sure long term whether it will continue to be non means tested).

Anyone else done this? Presumably a good idea?

[monthou]

It's a no-brainer. But if you've been working abroad for some of the years you can buy you may / should be able to buy class 2 contributions for those, which are much cheaper.

[Skeptisk]

monthou said:

It's a no-brainer. But if you've been working abroad for some of the years you can buy you may / should be able to buy class 2 contributions for those, which are much cheaper.

Does the class 2 still get me the same pension rights?

[monthou]

Skeptisk said:

monthou said:

It's a no-brainer. But if you've been working abroad for some of the years you can buy you may / should be able to buy class 2 contributions for those, which are much cheaper.

Does the class 2 still get me the same pension rights?

I understand so. But I'm not an expert, and I haven't looked at it closely as it doesn't apply to me.
So definitely maybe.

[SV_WDC]

I think a lot depends on your age. Wouldn't surprise me if the state pension becomes means-tested the way things are going

[caziques]

You need to act NOW.

You may be able to pay class 2, and go back to 2006 - but this is only available until April at the present time. Even the voluntary ones are good value (Class 2 are GBP143 a year)

You have to get a "quote" from the DWP, and then pay HMRC. They are being processed in date order, Mrs Caziques had just had hers allocated after being paid last July. The important thing is the payment must be in by 5th (?) April.

You get no UK state pension if you have less than ten years contributions.

Depending on local rules you may have to hand over some or all of UK state pension in return for a local one. New Zealand changed its law a few years ago, I can keep the UK state pension that comes from the voluntary contributions (and being NZ my UK state pension is frozen at the rate when I first became eligible).

[Giantt]

SV_WDC said:

I think a lot depends on your age. Wouldn't surprise me if the state pension becomes means-tested the way things are going

Or worse,.gov clearly states,'this is not a right' so it's a benefit that can be tested,or removed

[Armitage.Shanks]

I can't understand why they can't make this process completely electronic without the need to speak to DWP first. But then again the Govt is not interested in making it easy when they will have to pay out more

I doubt there'll be an extension to the time limit this time.

[romft123]

Short answer...YES. I was missing many years as working in the USA and had stopped contributions years before that. Just worked out the numbers. easy to find in the Gov website on what your pension will be at 66/67. Then factor in the total cost of topping up v what your pension was to what it will be.... and then how long it would take to come out even IF you put that....(for me it was £10k)...into an investment/income earner. For me it worked out to just over 2 years and then I would get a 20% return......no brainer

[Martin_MUC]

caziques said:

You get no UK state pension if you have less than ten years.

I am not sure this is correct as both my wife and BiL receive a state pension but maybe the rules have been changed! They are both abroad and contributed less than 10 years! But, the BiL couldńt back pay as he had less than 10 years of contributions.

As previously mentioned, if you can back pay do so and then continue to pay NIC 2 each year.

[jock mcsporran]

Skeptisk said:

monthou said:

It's a no-brainer. But if you've been working abroad for some of the years you can buy you may / should be able to buy class 2 contributions for those, which are much cheaper.

Does the class 2 still get me the same pension rights?

I’ve just bought 10 years of Class 2 for some of my time working abroad as I’d have had a shortfall on my full pension otherwise.
I believe the deadline is soon but so long as you have applied before the deadline it should be accepted. I think the form is CF83.