NoRegretsCoyote
Registered User
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How do I qualify for Class 3 NICs?
If you are below pension age and have lived in the UK and/or paid NI contributions for at least three years in a row but are no longer living in the UK.
How much do voluntary Class 3 NICs cost?
As of early 2023 they are £15.85 a week. That's £824 a year.
Why can't I pay cheaper Class 2 NICs?
Class 2 NICs which are only £3.15 a week, about 20% of the cost of Class 3 NICs. However you can only pay Class 2 if you are working in Ireland still and were working when you left the UK.
Is it still worth it to make voluntary Class 3 NICs?
Almost certainly yes if you are eligible. £824 a year gets you one year closer to the 35 years needed to qualify for the full UK state pension which is about to increase to £203 a week. So 35 times £824 a year in contributions gets you £10,556 a year for life once you reach 67. In cash terms you break even in a little under four years.
What is the investment return?
I calculated it's a guaranteed inflation-adjusted return of 8.7%. It's based on a 67 year old living to 82. There is no guaranteed return better than this.
Can I pay voluntary Class 3 NICs even if I haven't worked or lived three years in the UK
Possibly. Some people (myself included) are allowed to pay them despite having less than three years working in the UK. My view is that you should apply to pay them (see next bullet) if you have any UK NI record at all. You have nothing to lose except the price of a stamp.
How do I pay voluntary NICs?
Head over to the key post here and check it out.
If you are below pension age and have lived in the UK and/or paid NI contributions for at least three years in a row but are no longer living in the UK.
How much do voluntary Class 3 NICs cost?
As of early 2023 they are £15.85 a week. That's £824 a year.
Why can't I pay cheaper Class 2 NICs?
Class 2 NICs which are only £3.15 a week, about 20% of the cost of Class 3 NICs. However you can only pay Class 2 if you are working in Ireland still and were working when you left the UK.
Is it still worth it to make voluntary Class 3 NICs?
Almost certainly yes if you are eligible. £824 a year gets you one year closer to the 35 years needed to qualify for the full UK state pension which is about to increase to £203 a week. So 35 times £824 a year in contributions gets you £10,556 a year for life once you reach 67. In cash terms you break even in a little under four years.
What is the investment return?
I calculated it's a guaranteed inflation-adjusted return of 8.7%. It's based on a 67 year old living to 82. There is no guaranteed return better than this.
Can I pay voluntary Class 3 NICs even if I haven't worked or lived three years in the UK
Possibly. Some people (myself included) are allowed to pay them despite having less than three years working in the UK. My view is that you should apply to pay them (see next bullet) if you have any UK NI record at all. You have nothing to lose except the price of a stamp.
How do I pay voluntary NICs?
Head over to the key post here and check it out.
