Voluntary national insurance contributions

[banth]

I haven't paid enough national insurance in the last tax year to count towards my State Pension, but the payment of the shortfall is voluntary. I'm 23, just started a graduate job without a company pension as yet. Should I pay this shortfall of around �200?

[kags]

If you retire at 65, under current rules you must have paid full NI contributions for 44 years to get the full basic pension (39 years for retirement at 60). You can get a prediction as you near retirement age, and you are given an opportunity to top up contributions for underpaid years at that point. You have a long time before you retire, anything could change by then, and it is never too late to make up contributions. Personally, I would keep the �200 now as you probably need it.

[Famous5]

I think you can only repay topups in the previous 6 years - the notice you got from DWP should say this.

I would recommend you do pay them now, because anything can happen to pension rules between now and when you retire - which some people now think might be more likely to be 70 not 65

[kags]

yes, sorry banth, Famous5 is right - I had forgotten about the 6 year time limit.