UK State pension - Am I class 2 or Class 3

[Kev1964]

One counter argument against paying historical years is that (touch wood) a contributor may not reach retirement age and therefore derive zero benefit from their payments. The New State Pension, which you would be entitled to (according to current rules), has no surviving spouse benefit. Your estate is theoretically reduced by the amount of the lump sum payments.

Think positively though and on balance I agree with the views of DannyBoyD and jrbeire.

 

[giddyup]

As far as I can gather the system defaults to Class 3; if you believe it should be Class 2 make that case when you complete CF83.

On the online form was there somewhere to make that case? I just filled in all the details and submitted but I did not see anything about class/2/3. Wondering if I should follow up with a letter and some documentation.

 

[DannyBoyD]

if I should follow up with a letter and some documentation

Wait & see what comes back first.

 

[Allpartied]

One counter argument against paying historical years is that (touch wood) a contributor may not reach retirement age and therefore derive zero benefit from their payments. The New State Pension, which you would be entitled to (according to current rules), has no surviving spouse benefit. Your estate is theoretically reduced by the amount of the lump sum payments.

Think positively though and on balance I agree with the views of DannyBoyD and jrbeire.

There is still a benefit, in some cases, to buying back the years and continuing to buy them back until reaching retirment age, even if you die before the UK retirement age.
I have an AVC, with 200k and was anticipating that this sum would have to bolster my pension payments over a 20/25 year period.
But if I know that I am guaranteed an inflation proof payment, from age 67. for the rest of my life, I can use this sum over a shorter period. I can retire earlier and spend the 200k during my 60's, knowing that if I do live beyond 67 the pension will kick in. And if I don't make it, then, at least, I have had a few extra years of well funded retirement

 

[Storyman]

Hi, I am looking for some advice on this topic. I applied to buy voluntary NI contributions for previous years. My situation is that I moved to the UK in Sept. 2006 to attend university for one year. I then spent a further two years working there from May 2007 till Sept 2009. As far as I remember I didn't apply for a NI number till about Dec/Jan of 2006/07. I came back to Ireland in Sept 2009 and immediately start working here and I have been continually employed in Ireland since. On my pension forecast I have 6 years of NI credited to me but on my NI record there are 3 full years paid 07/08, 08/09 & 09/10. I sent in the CF83 form last November and a cover letter explaining my situation. This morning I received two letters from HMRC. One was telling me that I can pay Class 2 for the year 23/24 at £179.40. The second letter said that they are unable to accept my application to pay the class 2 rate for the previous years and have invited me to apply for class 3. I have attached letters below. Any advice would be much appreciated. I am 41 years old so I can pay going forward and would still be able to acquire 34 years of NI contributions by the time I am 68.

 

[Lamps]

Im in a similar position to Soap15. I have 27 years till retirement age. I have 4 years contributions. I'll back date and pay 6 years worth to give me 10 years and an entitlement to the pension. Then I'll pay it yearly until I have the full contributions paid. I have the option to go back 16 years but I'm not going to as it's a risk, the entitlement to the pension can be taken away by a future government so I'll play it by ear each year. That's all depending on me being eligible to pay the class 2 rather than the class 3