How do I? How much? And what do I get by topping up my UK STATE PENSION?

We are going to get into how someone goes about buying additional qualifying years using voluntary class 3 or class 2 National Insurance contributions where they have gaps in their National Insurance record.

This is about making sure someone gets the maximum State Pension that they can when they come to take it. And also on how much those additional years cost and what it buys you and whether it offers good value for money.

However under some circumstances and this is where it gets a little more complex someone can have more than 35 qualifying years and yet their state pension projection is less than the current full new state pension. This is typically due to them having been contracted out and those years of being contracted out are deducted from their state pension entitlement. Its also worth me mentioning here that once you meet the 35 qualifying years requirement you cannot get any more state pension. So in truth beyond those 35 years anymore National Insurance that you pay does not get you anymore additional state pension.

And likewise if you already have the full NI record then you wouldn’t look to buy anymore, added to this its absolutely imperative that before you send any money that you check that you would benefit from buying additional years and I’ll go into how you can check. There was some controversy around this a few years back when voluntary class 3 contributions where being made but it wasn’t buying the individual any additional years and then it got a bit nasty when HRMC refused to refund the money. However, this I understand was rectified and refunds were made back to individuals where they made contributions that didn’t get them anymore state pension.

National Insurance Contribution Rates
https://www.gov.uk/voluntary-national...

Future Pensions Centre
https://www.gov.uk/future-pension-centre

HMRC contact details for voluntary National Insurance Contributions
https://www.gov.uk/government/organis...


🗒 Please note:

The information provided is based on the current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.

All references to taxation are based on my understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances.

This channel is for information and education purposes only. Any information or guidance given does not act as financial advice. Please consult a financial adviser if you are unsure in anyway.

Keep in mind that the value of your investments can go down as well as up, so you could get back less than you invest.


⭐ My aim is to provide education and guidance to help individuals understand pensions, investments and protection.

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