UK state pension - option of making additional contributions

Peckham

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I worked in UK for 4 years, and left there in 2005. Last week I received a letter from UK Revenue saying I had made 8 years contributions, and that I needed to make 30 years worth in order to receive a full UK state pension (as things stand I would received eight-thirtieth's of a pension - currently £90.70 per week).

The letter gives me the option of making a contribution of £392.60 to bring my qualifying years up to 9 (i.e. to receive nine-thirtieths). I rang them to query it and they say that if I wish I can keep making these payments for 22 years in order to bring my qualifying years up to a full state pension - the amount I need to contribute will increase each year, but not by much - i.e. I will need to contribute c.£8,800 over 22 years in order to increase my pension from £24 per week to £90 per week.

Seems like a good deal. Does anyone have any insight on this, or other things I should be querying? The only additional thought that has come to me is whether I can postpone making the 22 years worth of additional payments until as late as possible - i.e. from the ages of 45 to 67 (which will be the age I qualify for state pension in UK).

(To put it in context I am currently 31 years old, have been contributing to work based pension schemes for the past 8 years or so - both in Ireland and UK).
 
It is certainly worth your while to pay the voluntary contributions towards an increased U.K. pension.
There are some very active threads on this topic over on moneysaving.com which you should read.
I have started paying an additional 10 years contribs ahead of my retirement date next year.
 
It is certainly worth your while to pay the voluntary contributions towards an increased U.K. pension.
There are some very active threads on this topic over on moneysaving.com which you should read.
I have started paying an additional 10 years contribs ahead of my retirement date next year.


I agree. It's a good deal. I think you have to take up the option soon though as it won't be available after pension rulkes change. Ther have also been threads on AAM on this topic in the past. Try a search.
 
Meantime make sure that you are keeping your Irish contributions up to date to protect your Irish SW pension. Should you ever be unlucky enough to be out of work make sure to always sign for credits even if you are not entitled to a payment
 
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