Approved for class two, help with calcs please

Mike Rosoft

Registered User
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Could someone assist yours truly who gets a bit swamped by maths having reached the dizzy heights of the old inter cert pass paper.

A family member has received notification from UK pension authority that they can make 18 years of class two voluntary contributions which comes in at £2968.25 (£163.8 x 13yrs, £166.95 x 3yrs, £158.6 x 1yr, £179.4 x 1yr). If the UK state pension is currently £221.20 p/w, £11,502 p/annum and each additional year purchased gets you 1/35 of above figures am I right in thinking this works out at a gain of an extra £6.32 p/w or £328.63 annually?

If this is correct then 18 years x £328.63 = £5915 extra pension annually. This appears to show that payback for the additional 18 years bought would be six months?
 
Yes, looks correct to me.

221.20 * 52.18 weeks = 11,542 pa new State Pension

1/35 = 329.78

18/35 = 5,936

Yes, it's unbelievably generous.
 
Thanks Protocol, I was rubbing my eyes thinking this is either too good or I'm a complete maths duffer!
 
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