iceflow

What is this guy actually saying about the NSP and 5/4/23? My spouse falls under the new state pension rules. We have been buying her years off and on and I think we have about 2 more to go to get to the 35 required for a full NSP. Are we saying that you need to have the 35 in the bag by 5/4/23?...or what? So after 5/4/23 no more voluntary buying of NI years? I read his call to action.....'must do it now or else' but I'm not quite sure what it is that needs to be done by 5/4/23.

https://www.manchestereveningnews.co...12.1670269950#

neill

What is he saying?
You generally need 35 years of full contributions if you're on the New State Pension (if you want a full pension at retirement), this has been a fact for years I believe.
If you have less, then you will generally get Full * N / 35 of the NSP, where N is number of full years contributed.

Glasgow Girl

Up until 5 April 2023 it is possible to purchase up to 10 extra years NI contributions if you had gaps between 2006 and 2016 and were born within a specific date range. That door closes on 5 April 2023. It is a very badly worded article but I think that is what it was trying to convey. The ability to backfill any gaps in the prior 6 years still exists after 5 April 2023. There are no other changes, 35 years of contributions will still get you a full pension, provided there is no COPE deduction due to being contracted out during any of the 35 qualifying years, there is no need to get to 35 qualifying years prior to 5 April 2023.

Pulaski

The article appears to be incomplete, but the "transitional arrangements" allowed people to make contributions retrospectively back as far as tax year 2006-2007, as opposed to the normal rules which allow only retrospective contributions for only upto six years.

For example we are currently in tax year 2022-2023, and 2016-2017 would be as far back as you can contribute under the "normal" rules, but for about the next six weeks you can make upto an additoinal 10 years of contributions if there are years between 2006-2007 and 2015-2016 for which you made no NI contributions, which would be invaluable if you don't have enough years of contributions (i.e. at least 35 years - if you work in the UK paying NI is mandatory if you are below retirement age, so someone who left school at 18 and retired at age 66 after working their entire life, would have made 48 years of contributions, and have 2-3 years of deemed contributions depending on where their 16th birthday fell) and are too close to retirement to reach 35 years contributions using the "current + six preceding tax years" rule. If you are currently age 60 and have a retirement age of 67 and have currently 17 years of actual or deemed NI contributions then under the "normal" rules you can contribute for the 6 preceding tax years, the current tax year, and the following 7 years until you retire (you cannot conribute after the standard retirement age), so that would make 14 additional years for a total of 31 years, which would give you 31/35ths of a state pension ..... but at the moment, if you have (at least) 4 years for which you made no NI contributions between tax year 2006-2007 and 2015-2016, then you can contribute for 4 more years to, to bring you up to 35 years of actual or deemed contributions, and therefore a maximum state pension.

iceflow

Glasgow Girl and Pulaski, you have clarified the situation. Much appreciated, thanks.

BritInParis

This thread has solved a minor mystery for me, thank you.

BritInParis

The deadline has now been extended until 31 July 2023.

USADragon

We paid 16 years at class 2 at the beginning of this year. My husband's forecast has just been updated, and his pension has just about doubled to 185 GBP per week, for a total cost of 2,625 GBP. Waiting for a similar update on mine. The best part of it is that none of the voluntary payments will be subject to WEP. Extremely grateful to all those who posted on this forum and alerted us to it in the nick of time.

kevntrace

I had a quick look at my NI record and I have paid 37 years full contributions, not including the current year. My pension forecast is currently 185.11 GBP and the max is 185.15 GBP (which presumably I will get once this year's contributions are added to my record). I have paid pretty much all of my NI contributions as class 3 (yes I know I could have switched to class 2, but never did). Question - should I stop my class 3 contributions once this year shows up on my record? Doesn't seem to be any benefit to paying more, and since I've paid at the class 3 level rather than class 2, I've paid my fair whack.

Pulaski

I understand that once your pension forecast is maxed-out, typically after 35 years, they stop billing you and don't accept any more contributions.

Glasgow Girl

Yes you should stop contributing as soon as you qualify for the maximum pension. There is is no benefit to any further contributions.

asjwalsh

Could you explain exactly how you did this? What form? Where did you send it? How did you pay?

I'm trying to avoid paying a third party to do this for me.

Many thanks,

Andrew

Glasgow Girl

Read this thread starting with the most recent posts. It has a wealth of information and should answer almost all of your questions. https://britishexpats.com/forum/usa-...utions-874408/

in short, you can backfill the previous 6 NI years and all future years until you reach retirement age. Each of those additional years will add about £5.29 per week to your state pension. Up until 31 July 2023, some people can backfill a further 10 years between 2006 and 2016 if they meet certain criteria. This 10 year door door closes on 31 July 2023, so if interested get your application in ASAP. If you have a lot of NI contributions prior to 2016, or were contracted out in the past then there are some nuances that may apply to any years backfilled between 2006 and 2016, but almost all the information you need is in the above referenced thread. Post any questions you may still have after reading this thread. The most recent comments in the past year are the most relevant, read it from the most recent date back.

Pulaski

Glasgowgirl's advice immediately above is good, but you can find all the information on the DWP website for information about NI contributions if you live overseas (DWP International desk). Usually I recommend phoning, but I hear there are very long delays at the moment in getting through.

asjwalsh

Thank you.

As far as I can tell, I fill out form CF83 and send it to the address on the form, requesting I pay Direct Debit Class 2 contributions. I also checked the Yes box for any shortfalls that I can pay (question 25).

That seems to be it really. I've got 20 years paid for. Just need to boost it to the full amount.