[Closed] NI contributions - I have gaps

I missed about 10 years due to overseas work. I lost some state pension, about £70 per month according to DWP.

Aiui To get the full pension you'll need 35 years of contributions. If you are planning to keep on working then you'll get enough years in anyway so no real benefit in making up the shortfall. If you plan to stop working then you can voluntarily fill the recent gaps.

You only need 35 years for the full state pension, so either work another 4 years or buy 4 years missing contributions.

https://www.nidirect.gov.uk/articles/understanding-and-qualifying-new-state-pension

I thought you only needed 30 years for a full state pension.

Besides, if you can't claim until 2033, don't worry, there probably isn't going to be one by the time you get there.

I've had this... due to mistakes at the HRMC end, rather than periods out of work.

Can I catch up on the <6 years of shortfall.

You can only do so if those shortfalls were in recent years. The last three six years IIRC. Older years are closed to new contributions.

You will need 35 qualifying years to get the full new State Pension if you don’t have a National Insurance record before 6 April 2016.

https://www.nidirect.gov.uk/articles/understanding-and-qualifying-new-state-pension

Use the state pension forecast to see how many more years you need for a full state pension.

If you intend to work for at least that many more years, don't worry about it.

Otherwise, buy enough previous years.

https://www.gov.uk/check-state-pension

And being self-employed, is it advisable to contribute each year now till 2033 to maximise state benefits?

For the most part, you don't get a choice in the matter.

If you were self employed at the time, buying back those years is a lot cheaper than if you were on PAYE.
Also I think the current rules don't just look at the total years of full contribution, I think it's dependent on recent years too. You can have 40 plus years, but if you've not been paying in the last couple you'll get a reduced pension.
It's very sobering buying previous years. First you have to ask when the increased pension will break even with the cost and then you have to ask yourself if you think you'll last that long.

You can have 40 plus years, but if you’ve not been paying in the last couple you’ll get a reduced pension.

I'm pretty sure that's not how it works.

I could be wrong, but there's nothing on https://www.gov.uk/new-state-pension/how-its-calculated that leads me to believe there's a penalty for retiring early.

I’ve had this… due to mistakes at the HRMC end

How did you get this sorted? I've got a lot of gaps, mainly from the 90's when I was enjoying life. I can't really remember what I was doing for a lot of those years, but even if I wasn't working I must've been on the dole, so not sure how it happened.

I’m pretty sure that’s not how it works.

Not according to the info on their website, just says 35 years.

Not according to the info on their website, just says 35 years.

Yeah. I'm fairly well versed with the subject, I've never heard anyone claim that there's an early retirement penalty before.

On gov.uk you can view your NI record along with all calcs of state pension based on current contributions, max contributions etc. Plus cost to make up missing or partial years if recent enough

It's really clear - you need to set up an account but it's well wort it when it's done. Also shows all your tax paid etc and links to self assessment if you do that

Have you checked your payment history is correct, I had some errors which they corrected.

Check you are eligible for the reduced gap year payments, 200 odd quid v c 700 quid per gap year. Self employed like landlording is a qualifying occupation.

I have 2 years left to buy but 11 years to do it. I would like to keep a few up my sleeve in case I get a job as that would pay for them, and over qualifying does not earn any more.

I just checked. I have gaps too. 4 years of low/absent contributions from student years.

NP, seems I’m maxed out. I have been contracted out. Still, some years to go yet.

£197.53 is the most you can get

You cannot improve your forecast any more.

For a while I had 2 national insurance numbers. One was real, the other i made up.

Tax office wasn't happy 😆

I must’ve been on the dole, so not sure how it happened.

Signing on should also cover your NI, but like most things ignore what anyone on here 'forecasts' and just logon and look at your own statement.

FWIW I thought I was short, but I've qualifying years from when I left school (at 16), while at college.

Thanks all, really helpful.

I'm just a wee bit surprised I have gaps, as can't imagine why (been employed, by a company and then self for the whole period). Will delve a bit more

If you were self employed at the time, buying back those years is a lot cheaper than if you were on PAYE.

Likewise if you were working abroad.

I missed about 10 years due to overseas work

Making up contibutions at full rate is a calculation; at reduced rate it's a no-brainer.

This thread prompted me to check contributions as I’d paid for 32 years so assumed I’d get the full amount. However, getting set up on the Government website is a pain, I thought that as I’d got a tax ID this would suffice but it tells me that I’ve not used this for over 3 years (I have) its invalid. I went through all the rest but out of the four items from which you have to pick to to help I.D. I can only fulfill 1. I don’t have a current passport or N.I. driving licence. Can anyone help?

I’ve managed to access the portal now and checked my contributions. I’ve made 38 years of full contributions but as I was then self employed for 7 years and didn’t make any more I will be on a pension from 67 that is reduced by £30 per week. If I’d not worked after my 38 years (I did contribute tax), I’d be on a full pension! I’m going to try and contribute before my retirement date. It’s something that could catch a lot of people out so if anyone knows the cost of buying more years it may be useful to us other owd gits too!

I was getting a titchy bit worried cos an ex employer missed 6 months of my NI payments. I didn’t know until ages afterwards when DWP informed me & said employer was long gone.
However, by the time I’m 66 in August I’ll still have paid in for 45.5 years!

@wheelsonfire I’m sure that’s not correct. You won’t get penalised for an extra seven years.

You need 35 years under the new flat rate scheme that has been in place since 2016, but there were transitional rules which make understanding it more complicated. Contracting out can make a difference so you may need more. So anyone opting out in the past either into a DB scheme like the NHS or other public sector pension may need additional years. Also anyone opting out of serps etc into private pensions.

At its most expensive buying years via class 3 voluntary contributions costs c £800 but means you will get roughly £265 a year extra, so relatively short pay back period.

@ superstu thank you for that input, the £30 per week less was taken from my personal forecast on the Government website. I’ll investigate further after my brain stops aching!

As has been said, there is a time frame for how far back you can go to top up.

It's not as simple as it looks and I don't pretend to understand it. One of the websites above^^ is for citizens of Northern Ireland (NI in that case isn't National Insurance 🙂 )
One way to check for a personal forecast of your state pension is at the UK Gov site
The 35 year "rule" isn't, I'll need more than 40 years of contributions
Class 2 NICS can be paid voluntarily under certain circumstances with self-assessment but won't necessarily add to your pot
TLDR; get a personal state pension forecast and take proper advice if necessary. The Future Pension Centre staff are very helpful IMLE

I am not an expert, but I have been through this recently and what looks straightforward is complicated by the transitional rules between the new and old state pensions.

I could only get to the bottom of this by phoning the Future Pensions Centre. This allowed me to maximise my top ups to get the full state pension under the new state pension scheme, which is what you should be aiming for.

From memory this was more than the 35 years contributions that I thought was required, but this only maximises the benefits from the old scheme, so I would get less.