State pension - filling gaps in National Insurance contributions

Puzzled said:
I was thinking the same, only owe £25 on one year but couldn't work out how to pay it as the site sends you in a loop.

I only want to pay the cheap one as it was in the last 2 years and read that you need 2 years contributions to be to claim JSA if I were to lose my job. Not sure if that is right now though with universal credit.
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I did this last year and had to phone them. It was relatively painless doing it over the phone. I was missing 4 years and one was only about £20 so thought it was worth paying. Two of the others were too far back to pay and one they wanted about £500!
 
Trifid said:
£9k a year doesn't seem too bad to me as an all encompassing additional pension. Check out annuity values to be depressed.
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You have to consider that you are going to be paying over £200,000 in NI contributions over your working life though, as such as it compares very poorly to other pension schemes, I only pay 5% gross and my employer pays 15-20%, and the pension payout is enormously better. Plus on top of that there is the option of a shared cost AVC where I can sacrifice salary and not pay any NI on the contributions to an additional pension.
 
Energize said:
You have to consider that you are going to be paying over £200,000 in NI contributions over your working life though, as such as it compares very poorly to other pension schemes, I only pay 5% gross and my employer pays 15-20%, and the pension payout is enormously better.
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Given NI has always been more than just a pension scheme it's not really a fair comparison.
 
I wish you could opt out of the state pension. Its absolute gonads anyway isnt it? I've been paying into it since I was 23 so 13 years.
Would much rather pay it into my private pension, who match with an equal %

What's the age you can claim the state pension now, 80 odd?
 
Vinno said:
I understand that I have many years left to fill the remaining 26 years but for the sake of £300 for 3 years, it's worth it right?
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Absoilutely. You never know when disaster will strike and if you have the money now, you should pay up as many years as you can afford.
 
Quartz said:
Absoilutely. You never know when disaster will strike and if you have the money now, you should pay up as many years as you can afford.
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Considering the state pension age can only be claimed at what 70 odd at the time he retires there's no real reason to pay now when you can pay later. There's no reason to pay over 35 years contributions if you can help it.

Pudney said:
Given NI has always been more than just a pension scheme it's not really a fair comparison.
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According to the .gov website that's what they state it's for so you can only go by what they say https://www.gov.uk/national-insurance/what-national-insurance-is-for
 
Energize said:
According to the .gov website that's what they state it's for so you can only go by what they say https://www.gov.uk/national-insurance/what-national-insurance-is-for
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Given the link you have provided already lists more than just pensions I think that supports my point rather than yours.

Ignoring the above, the link is actually describing what NICs qualify you for. The important other area it contributes to is the NHS.

https://www.gov.uk/government/publications/national-insurance-fund-accounts

https://assets.publishing.service.g...nal_Insurance_Fund_Account_-_2018_to_2019.pdf

NICs also help finance the National Health Service (NHS). NICs are paid into the NIF net of money allocated to the NHS.
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Edit: a realistic assessment of your NICs would therefore be pension annuity, health insurance, and probably some form of income protection insurance as a minimum.
 
Energize said:
According to the .gov website that's what they state it's for so you can only go by what they say https://www.gov.uk/national-insurance/what-national-insurance-is-for
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It also says this which Pudney is getting at so you could say only 25% goes towards the State Pension.
Mind you most people I know think it's for the NHS.

What do National Insurance payments pay for?
Your National Insurance payments go towards state benefits and services, including:
  • the NHS
  • the State Pension
  • unemployment benefits
  • sickness and disability allowances.
 
Guest2 said:
I wish you could opt out of the state pension. Its absolute gonads anyway isnt it? I've been paying into it since I was 23 so 13 years.
Would much rather pay it into my private pension, who match with an equal %

What's the age you can claim the state pension now, 80 odd?
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It’s really a tax. And our generation is extremely unlikely to see anything for all those contributions.
 
HACO said:
You can rename a tax and call it whatever else you want, but it remains a tax according to every meaningful definition of that word.
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Except it isn't a tax for important aspects, including the fact that NICs are debts that are protected by The Limitation Act 1980. Tax has no limitations.

Edit: I'd call that pretty meaningful.
 
KingOfTheDaves said:
It use to be 39years for women and 44years for men to get the full state pension.

It was then reduced to 30years for everyone. Now it has been put back up to 35years.
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What does this mean? As in anyone can claim state pension once you have contributed for 35 years? So in 22 years when i'm 58 I can claim it. I'm pretty sure i'll be doing that and putting it straight into housing / retiring early if I can
 
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